In 2021, social media personalities were among the most vocal advocates for cryptocurrency. Numerous figures deliberately or unconsciously promoted scams by using their platform and fame. In this strategy, supporters generally intentionally inflate prices of cryptocurrencies by misleading marketing and continuous marketing to market their tokens and collect the gains as clients witness their investment going down.
One fraud that genuinely encapsulated this philosophy was what occurred with SaveTheKids tokens. In June, an e-sports franchise FaZe clan’s member began pushing a charity-based cryptocurrency SaveTheKids. SaveTheKids used professional marketing films and even FaZe’s own picture on its website to help promote the token’s release.
After the formal introduction of the coin, the new investors who controlled the bulk of the coin liquidated their coins, and the coin rapidly collapsed. Some eagle-eyed internet commenters began seeing a trend in which the FaZeclan would support cryptocurrency, only for it to plummet quickly after introduction. There have been several people suspended from the FaZeclan after inspections.
The idea behind it was straightforward: participate in this new cryptocurrency that is guaranteed to be a hit due to its links to the world’s largest Esports franchise. The initiative will also help generate funds for charitable organizations. A bonus!
But unfortunately, the entire episode was indeed a rug pull. This happens when a programmer launches a currency intending to flee with clients’ cash. Immediately after the SaveTheKids token was debuted, the coin crashed due to a significant drop from some original investors controlling the bulk of the coins.
When SaveTheKids got public, it was of no value at all. Perhaps everything might have stopped there, with the entire incident being written off as just one more alternative currency hoax. But several realized FaZe Kay, mainly, had a fondness for advocating coins that all finished like that.
By the conclusion of this affair, FaZe Clan started an administrative inquiry that resulted in many bans, and FaZe affiliates, notably FaZe Kay was, thrown out of the club.