ZKasino $30M ‘favor’ to users — seamless transition or rug pull?
Following a month-long ‘bridge-to-earn’ program, crypto Gambling platform ZKasino launched its own network on Saturday. However, the announcement included a nasty surprise. In what ZKasino referred to as a ‘seamless transition,’ users were informed that “All bridged Ethereum has been converted to our native gas token, ZKAS… as a favor to our users.” Not only was the 10,505 ETH, (worth $33 million at the time of writing) converted to the project’s own token without forewarning, but the tokens themselves would not be available to users right away. “Keep in mind that the majority of ZKAS is vested over 15 months, only 5% is distributed out immediately.” The ‘bridged’ ETH was sent to a multisig address controlled by the team. The sum was then deposited into Lido a few minutes later where it earns over $1 million per year, given the current staking yield of 3.2%. The move has been branded by much of the crypto community as a ‘rug pull,’ especially given the multiple...