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Gaming Platform DecentraBet Accused of Misleading Investors

source-logo  beincrypto.com 03 April 2023 16:40, UTC

Pseudonymous Terra critic FatmanTerra has accused the decentralized casino DecentraBet of having no workable products despite a supposed $10 million Series A funding round.

According to FatManTerra, the team behind the project lied about its funding round and may only pay influencers if they successfully onboard new customers. Influencers reportedly get paid $800 for 15 tweets.

Crypto Sleuth Points Out Inconsistent Funding Narrative

In addition, DecentraBet reportedly claimed investments from Stake.com Ventures and Playtika. Both denied their participation in a funding round, according to FatManTerra.

DecentraBet claimed that an individual had impersonated Stake.com Ventures to be part of a funding round. The project dismissed suggestions that a fraudulent actor invalidated their whole project.

Data from Crunchbase indicates that DecentraBet received $2.2 million in funding from seed and Series A rounds. About $150,000 came from early-stage venture firm ZigZag Labs.

Following FatManTerra’s tweet thread, Vesta Finance, a stablecoin protocol on Arbitrum, said they terminated DecentraBet’s partnership in their Integration Program.

FatManTerra recently accused online crypto casino Rollbit of predatory sports betting spreads. Citing a verified source, the commentator accused the casino of operating without a license. The crypto casino later explained that it was undergoing a licensing renewal procedure, which FatManTerra claimed was false.

Pseudonymous crypto sleuth Grizzly also recently alleged that the founder of Rollbit was offering influencers $250,000 to promote its RLB token without disclosures.

FatManTerra Egged on by Terra Collapse

While FatManTerra claimed that DecentraBet had no active projects, it recently touted its decentralized lottery project MoneyGame as its core onboarding marketing strategy.

Its core gambling system, which lives on Ethereum layer-two solution Arbitrum, reportedly allows users to bet without transaction confirmations. The project aims to migrate its casino engine to Matter Labs’ zero-knowledge rollup zkSync Era when zkSync introduces non-verifiable addresses.

Recently revealed to be an “average middle-class guy“ living in the United Kingdom, FatManTerra has been a critic of the TerraUSD collapse. He reportedly lost 30-40% of his nest egg through the failed stablecoin project.

He rose to prominence after a whistleblower at Jump Crypto approached him with explosive accusations that Jump had propped up Terraform Labs’ failing business model with a bailout in May 2021. Terraform Labs is the company behind the TerraUSD stablecoin.

BeInCrypto reached out to DecentraBet on Twitter and via e-mail but had not received a response at press time.