NEWS  News  May 22, 2024  Reading time: 3 Minute(s)

Max (RS editor)

In a recent exposé, YouTuber Coffeezilla has accused Rabbit Incorporation of being "built on a scam," asserting that the company was previously known as Cyber Manufacturing Co. before rebranding two months ahead of launching its Rabbit R1 product. Coffeezilla claims that Cyber Manufacturing Co. raised $6 million in November 2021 for its "Next Generation NFT Project GAMA", which was described as a "decentralized organization that is sending 10K crew members into space to complete energy harnessing missions across the universe."

The GAMA Project and CEO Jesse Lyu's Admission

Rabbit Incorporation’s CEO, Jesse Lyu, acknowledged in January his involvement with the GAMA project, which he characterized as a "fun little project". Lyu explained that his primary role was to develop an Unreal Engine 5 space station-themed game, which he later open-sourced. He admitted to purchasing a number of NFTs from the project for personal enjoyment but denied any involvement in trading or releasing tokens or cryptocurrencies, stating he exited the project once the game was open.

Discrepancies and Alleged Promises

Coffeezilla presented a contrasting narrative, sharing a Clubhouse recording where Lyu is heard emphasizing the legitimacy and substantial funding behind GAMA. In the recording, Lyu mentions plans to release "GAMA Coin" and ambitions for it to become a carbon-negative crypto, potentially a "Bitcoin 2.0." This portrayal contradicts Lyu's public downplaying of the project.

Furthermore, Lyu allegedly promised to buy back NFTs from disillusioned investors, claiming, "I better pay my money to collect your NFT back if you think this is just an NFT hype and dump project." However, Coffeezilla notes that investors have not received refunds, which are estimated to total around $1 million.

 [VIDEO CREDITS: COFFEEZILLA] 

Rabbit Incorporation's Response

Rabbit Incorporation responded to Coffeezilla's inquiries, stating that refunding NFTs is impractical unless the owners agree to "burn" them on the blockchain. The company rejected the notion that GAMA was abandoned, asserting that the project was open-sourced and handed back to the community in accordance with their feedback.

The statement also addressed Lyu's alleged buyback promise, explaining that it was intended to curb malicious wash trading and reselling of NFTs, not to offer general refunds.

Lingering Questions and Implications

Despite these clarifications, Coffeezilla questions whether the funds raised for GAMA were used to develop Rabbit R1. He draws parallels between the two ventures, suggesting that Rabbit R1 has similarly "promised the world and delivered on almost nothing". This ongoing investigation highlights significant concerns about the ethical and financial practices of companies transitioning from the volatile NFT market to new technological ventures.

This, together with the recent accusations about the R1 device being essentially based on an Android app that can be run on any Android device, and several other YouTubers reporting that the R1 isn't actually a functional device, sheds a dark shadow over the whole initiative that, by the first months of 2024, has been very successful among people, resulting in a stellar number of pre-orders. 

 MEDIA CREDITS: COFFEEZILLA | RABBIT INC.