Web3 gaming project ZKasino promised to reward users with ZKAS tokens after cross-chain staking of ETH. However, after the end of the reward period, all descriptions of returning ETH on the platform were deleted. The staked ETH of users was converted into ZKAS tokens at a discounted rate of $0.055, and locked for a period of 15 months or more.
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ZKasino changes whitepaper, ETH staking becomes donation
ZKasino denies rumors
Users forced into IDO, ZKAS tokens locked for 15 months
ZachXBT: Already warned
ZKasino changes whitepaper, ETH staking becomes donation
The progress of ZKasino in the past month is roughly as follows:
3/19: Announced Series A funding with a valuation of $350 million, with MEXC exchange investing $26 million.
3/24: Testnet deployment, audited by Certik and claimed to have passed the ChatGPT pre-audit.
4/5: Announced that cross-chain staked ETH reached 10,000 coins, and promised to further enhance rewards.
4/9: Claimed that cross-chain staking rewards have increased 2 to 3 times, and ZKAS tokens will be distributed immediately after the mainnet launch.
4/16: Cross-chain reward period ends.
Around 4/20, users discovered that the description of “returning ETH after the mainnet launch” has been deleted (highlighted in red in the right box).
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Whitepaper documents
also do not mention the return of ETH.
Source:
Wayback Machine
ZKasino denies rumors
Since 4/20, the official Twitter account of ZKasino has been flooded with comments. However, ZKasino remains calm and states that these are all rumors, and the mainnet launch is delayed due to the exchange listing delay.
But there is no mention of returning ETH.
Users forced into IDO, ZKAS tokens locked for 15 months
ZKasino did eventually launch the mainnet, but users who staked ETH for cross-chain purposes had their ETH converted into ZKAS at a discounted rate of $0.055.
For users who staked USDT for cross-chain purposes, the conversion rate was 1 ZKAS for every $1.
And users can only immediately receive 5% of the ZKAS, while the rest will be locked for 15 months or more.
ZKasino also claims to launch a second round of cross-chain reward programs in the future.
ZKasino announcement
ZachXBT: Already warned
ZKasino’s pinned tweet has nearly 10,000 comments. Cryptocurrency detective ZachXBT commented:
“I really don’t understand why everyone transferred $30 million to a scammer. I warned everyone about this team back in December last year. If you didn’t listen then, don’t tag me anymore. Why do you expect me to write about this again?”
He previously pointed out several incidents involving ZKasino founder Derivatives Monke:
Failed to repay @Pancakesbrah.
Held a giveaway of $200,000, but it is unknown who received it.
Lost a bet to @CL207 and didn’t pay.
Claimed to compensate users after the DC channel was hacked, but no follow-up.
As of now, ZKasino has not responded directly to the issue of returning ETH, and the matter has not escalated to a legal level. Users seem to have no recourse.
MEXC, which is also an investor, claims to be a victim as well.
ETH
ZachXBT
ZKAS
ZKasino
Further reading
Potential airdrops, V2 update brings anticipation to Friend.Tech with $7 million inflow in a single week
JPMorgan: Risks of Ether being considered a security may decrease due to weakening dominance of Lido.