E-sports collective FaZe Clan denies that it participated in the alleged pump-and-dump of Save the Kids coin, drops and suspends players who promoted the coin (Andrew Hayward/Decrypt)

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In short, a prominent esports group called FaZe Clan has penalised gamers who allegedly took part in a pump-and-dump bitcoin scheme.
The Save the Kids currency that FaZe members supported had a 90% decline in value within a short period of time, and its website is no longer accessible.
FaZe Clan, one of the most well-known esports groups that compete in a variety of games, has recently come under criticism for claims that its players took part in a pump-and-dump operation for a fictitious charity coin. The team has now retaliated by disciplining the players, and one has been let go by the company.

Late on Thursday, the team stated that it “strongly condemn[s] their actions” and has “absolutely no participation with our members’ activity in the cryptocurrency area.” As a result of the claims, FaZe has expelled veteran member Kay from the group and permanently suspended members Jarvis, Nikan, and Teeqo.

Save the Kids (KIDS), a Binance Smart Chain-based cryptocurrency project marketed as a charitable endeavour, had lately received promotion from the players. The coin’s website, which is no longer available, stated that the project would donate 1% of each transaction fee, or 3% of the total amount transacted, to the Binance Charity wallet in order to support a foundation that focuses on children. Influencers also stated that all investors would profit from the coin’s rising popularity.

Early in June, when the project went live, the coin’s price fell by nearly 90% in just three days, raising the possibility that the developers engaged in a classic pump-and-dump scheme by leveraging the influential gamers’ considerable influence to increase the coin’s value before selling and hoodwinking investors.

The involved FaZe Clan players deny any wrongdoing. “I want you all to know that I had no bad purpose pushing any crypto alt currencies,” Kay tweeted on June 27. I truly and foolishly believed that we all had a shot to win, but that isn’t the case. I should have checked everything out with my squad at FaZe, but I didn’t.

He continued, “While I’m really passionate about the cryptocurrency industry, it’s highly difficult & I still have a lot to learn. I advise everyone to research carefully before investing.” It was really irresponsible of me to openly discuss any currencies before learning more and after discovering that they can actually cause more damage than good.

FaZe Clan was established in 2010, but just recently became well known thanks in part to the success of “Fortnite” and the esports sector as a whole. FaZe Clan was ranked fourth among the most valuable esports organisations in December by Forbes, with an estimated value of $305 million, a 27% increase over the previous year’s estimate.

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