FaZe Clan removed Kay from their organization over charges of manipulating a charity cryptocurrency via the campaign Save the children. The announcement came as a shock as the campaign spoke widely of helping the underprivileged around the world.
FaZe Kay’s involvement refers to a scam that is exploited as a “pump and dump” which is commonly known as the Ponzi scheme.
These influencers, who were associated with FaZe, promoted digital currency through their followers and recommended their fans to buy the crypto. That they would later flush at a higher price, causing the price of the cryptocurrency to drop dramatically. The substantial amount of losses in these type of manipulated trades is caused to small investors, who in this case were FaZe fans.
FaZe suspended accused members and kicked Kay out
Three of the accused members, Jarvis, Nikan and Teeqo have been suspended until an investigation into the leak charge is underway. The most recent discovery of the FaZe Clan’s preliminary findings led Kay to be kicked out of the FaZe Clan, had to do with handling an altcoin called “Save The Kids” ($ KIDS).
The $ KIDS cryptocurrency, Save The Kids, was built on the Binance Smart Chain (BSC) and touted itself as a charity token. The promotional video, where Kay appeared, promised to “redistribute the wealth” to holders and charities. The suspicious operation of Comment was first reported by Canadian YouTuber OrdinaryGamers, who released a video calling on federal investigators to investigate the FaZe clan.
What is the cryptocurrency pump and dump or ponzi scheme?
FaZe Kay and others have reportedly created a market for Save The Kids digital currency by promoting it on FaZe channels. Fans of the successful esports organization, who fell into the trap of believing in the capital value FaZe brought, ended up buying the cryptocurrency into a madness.
When the currency got rich enough, the defendants emptied their holdings in bulk, getting a fair share of the profits. However, buyers, loyal to the FaZe brand, continued to buy the currency regardless of the lack of its intrinsic values. The key to these scams is the early mover advantage, digital currency or cryptocurrency is a fairly new area where there is little information available to investors.
Blockchain-based altcoins may seem like a money-making machine at first, but the lack of knowledge and awareness surprises many people who end up losing their hard-earned money to scammers. Cryptos still operate unregulated and under the radar, making it difficult for authorities to catch perpetrators of such scams.
For our readers, we suggest that you do proper market research and only place your money in a coin that has a fair share of market caps such as bitcoin, etherum, and litecoin, which are apparently considered higher. sure.