zkSNARKs NFT Project Raises $17 Million Amid Rug Pull Allegations

On-chain analyst ZachXBT has raised concerns regarding the zkSNARKs project, a newly launched non-fungible token (NFT) initiative on the Zcash blockchain. The project reportedly attracted nearly 17,000 bids through a blind auction, achieving a clearing price of 1.5 ZEC, which is approximately $2,190, for 8,000 allocations. The total transaction volume for the project reached around 25,305 ZEC, equivalent to approximately $36.94 million, with refunds of about 13,309 ZEC, or $1.943 million, being gradually returned to participants.

ZachXBT highlighted that the zkSNARKs project raised approximately $17 million, allocating 10% of the funds for the project team, 5% for royalties, and around $2,000 for minting fees. However, he criticized the project for lacking practical value, likening it to tactics commonly associated with scams in the NFT space, such as those seen in the Ordinals series. This has led to suspicions that the project may be a 'rug pull', where developers abandon the project after collecting funds from investors.

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Source: KLEA News