In a recent video, popular YouTuber Coffeezilla, known for exposing online fraud, accused AI firm Rabbit of orchestrating an NFT scam. Coffeezilla, whose real name is Stephen Findeisen, alleged that Rabbit, previously known as Cyber Manufacturing Co., was “built on a scam.” The video, uploaded on May 21, 2024, has drawn significant attention, with nearly 1.5 million views.
Rebranding and Controversy
Findeisen’s investigation centers on Rabbit Incorporated, the company behind the Rabbit R1 AI gadget. He claims the company was originally Cyber Manufacturing Co. and rebranded just two months before launching the Rabbit R1. In November 2021, Cyber Manufacturing Co. raised $6 million for an NFT project called GAMA. While CEO Jesse Lyu described GAMA as “a fun little project,” Coffeezilla presents evidence suggesting a more serious commitment. Old Clubhouse recordings reveal Lyu discussing GAMA’s potential to be a revolutionary crypto initiative, aspiring to become “the first not only carbon neutral but actually carbon negative crypto 2.0 or Bitcoin 2.0.”
The Disappearance of Funds
Coffeezilla questions the whereabouts of the $6 million raised for GAMA, asking, “But where are those millions? When the company changed to Rabbit, where did it go? Did it go to develop Rabbit, a completely different project?” He claims that GAMA investors have not been refunded, estimating the potential refunds to be around $1 million. Despite Rabbit Inc.’s assertion that the $6 million was used solely for the GAMA project, the lack of refunds remains unresolved.
Rabbit Inc.’s Response
When Coffeezilla reached out for comments about GAMA and possible refunds, Rabbit Inc. responded, stating, “There is no way to actually ‘refund’ an NFT unless the owner themselves agrees to ‘burn’ the NFTs on the blockchain. We don’t agree with calling the GAMA project ‘abandoned’ when it was open-sourced and given back to the community, in alignment with community feedback.” Rabbit Inc. also explained that Lyu’s comments about buybacks were taken out of context, claiming the buybacks were intended to counteract malicious wash trading and reselling of NFTs.
GAMA Project Details
Coffeezilla’s investigation revealed that Cyber Manufacturing Co. marketed GAMA as a decentralized organization aimed at sending 10,000 crew members into space for energy harnessing missions. This ambitious project promised a groundbreaking “next-level experience” supported by millions in funding. In a Discord message shared by Coffeezilla, Lyu admitted his involvement with GAMA, stating his main role was to build an Unreal Engine 5 space station-themed game that he later open-sourced. Lyu claimed he purchased NFTs for fun but denied any trading or release of tokens or crypto coins, distancing himself from the project after the game’s completion.
Inconsistent Narratives
Despite Lyu’s claims, Coffeezilla presented a Clubhouse recording where Lyu emphasized the seriousness of GAMA. Lyu is heard saying, “I don’t want to make GAMA, and none of us want to make GAMA as a hype and dump program. This is a legit team with millions of dollars of funding behind it.” He also mentioned the potential release of “GAMA Coin,” which he touted as a carbon-negative successor to Bitcoin. Coffeezilla pointed out the contradiction, noting that Lyu never released the promised tokens or crypto coins, which misled investors.
Unresolved Refunds
Coffeezilla alleges that GAMA investors have not received refunds. Lyu had apparently promised on Clubhouse, “I better pay my money to collect your NFT back if you think this is just an NFT hype and dump project,” a commitment yet to be fulfilled according to the YouTuber.
Potential Consequences
The Coffeezilla exposé could have significant repercussions for Rabbit:
– Damaged Reputation: Association with a proven NFT scam could severely tarnish Rabbit’s image and erode investor confidence in their AI product.
– Legal Repercussions: Depending on the marketing and nature of GAMA, Rabbit could face legal challenges from disgruntled investors.
– Impact on the AI Industry: If Rabbit is found culpable, it could cast a shadow on the credibility of the entire AI industry.
