TechFlow News, June 5: According to an on-chain investigation report by chain sleuth ZachXBT, Rain Protocol ($RAIN), a prediction market project with a market cap of approximately $8.8 billion, faces severe risks.
ZachXBT discovered, through tracking on-chain addresses, that RAIN’s team funding sources are linked to the Gems hot wallet. The same addresses previously transferred funds simultaneously for the failed projects DOP and TOMI—suggesting possible team overlap. TOMI, DOP, and Sirin Labs all trace back to controversial Israeli businessman Moshe Hogeg, who was detained in 2021 for crypto-related fraud and charged by police in 2023 with orchestrating a $290 million cryptocurrency fraud scheme.
Moreover, the $RAIN token price appears to be manipulated on-chain. Its Total Value Locked (TVL) consists almost entirely of its own illiquid native token, and its annual fee revenue amounts to only about $1 million. Gems.vip—the launchpad that incubated these projects—is reportedly preparing a new presale for Kai Platform. Meanwhile, DOP’s previously raised $162 million remains unaccounted for, prompting continuous complaints from retail investors.
