Crypto-sleuth ZachXBT at this time shared messages exchanged between SolChicksNFT CEO William Wu and COO Lewis Grafton. The dialog reveals that the venture misplaced treasury funds value round $20 million because of the implosion of the Terra stablecoin (UST) in Could 2022. What’s extra, the involved folks determined to not disclose these particulars to their customers.
These messages additionally highlighted that no person on the group had any technique to deal with or include UST’s collapse. Actually, no motion in any respect was taken to handle the disaster.
SolChicksNFT confronted the warmth of UST collapse
It was in Could this yr that the Terra stablecoin system collapsed as giant buyers started promoting their tokens. The transfer contributed to an enormous drop within the value of cash. Whereas the value of UST fell to $0.10, LUNA’s value fell to nearly zilch on the charts.
UST lost a market cap of round $45 billion inside every week within the ensuing massacre, resulting in a world crash out there. The management of the Terra system hoped to purchase Bitcoin reserves to purchase extra UST and LUNA cash in order that their costs will be stabilized, however the plan didn’t work.
Proper now, authorities across the globe are investigating Do Kwon, the CEO of Singapore-based Terraform Labs, the mother or father firm of crashed stablecoin TerraUSD. A number of crypto-firms reminiscent of Celsius, Voyager, and Three Arrows additionally collapsed attributable to their publicity to the Terra system.
In response to ZachXBT’s request for a remark, the COO replied,
“On UST- we mentioned and disclosed it with our largest non-public holders however determined that it was within the venture’s finest curiosity to not make a public announcement and danger pointless concern provided that we nonetheless have greater than 5 years of runway and we now have zero leverage.”
“It’s disturbing they suppose retail doesn’t have to know & solely giant buyers do,” ZachXBT responded on Twitter.
Earlier situations of misleading advertising
ZachXBT additionally shared a Twitter thread from December 2021, one which talked about considerations round SolChicksNFT partaking in “misleading advertising (undisclosed advertisements/utilizing bots) and poor administration.” The thread listed shopping for faux Twitter followers, Discord bots, and faux Reddit advertising, along with shopping for undisclosed shills from random botted accounts.
This 2021 thread additionally revealed that the SolChicksNFT venture raised cash from LD Capital, a VC blocked by the venture.
SolChicksNFT readying for clarifications
Catheon Gaming, the blockchain firm proudly owning the SolChicksNFT venture, condemned the “unhealthy actors” leaking confidential firm info for publicity. ZachXBT’s actions trigger actual hurt, the corporate assertion learn.
Nonetheless, ZachXBT mocked the accusation with a meme. Moreover, he called these clamouring to assist SolChicksNFT group “bots.”
Right here, it’s value stating that Catheon Gaming scheduled an AMA later within the day to make clear its place.
