In the fast-paced and unpredictable world of cryptocurrency investments, one project has recently captured attention for all the wrong reasons. Degen Zoo, touted as a “redemption project” by its founder Chris Zaknun, emerged from the ashes of Logan Paul’s CryptoZoo empire. However, beneath the surface of promises and grand visions lies a tale of controversy, deception, and potential fraud.
Degen Zoo burst onto the crypto scene in late 2022, positioning itself as the savior for investors who had suffered losses in the collapse of CryptoZoo. The initial narrative was compelling – a charismatic founder, Chris Zaknun, took center stage, leveraging outrage from the CryptoZoo debacle to build a community of 50,000 followers seemingly overnight.
However, as the project gained momentum, red flags started to emerge. Despite raising over a million dollars in a token sale, Degen Zoo failed to deliver on its promises, offering nothing more than conceptual drawings. Chris Zaknun, the self-proclaimed leader of the project, maintained centralized control, and transparency around the project’s structure and governance was notably absent.
One of the most alarming revelations was Chris Zaknun’s alleged manipulation of retail liquidity. It is claimed that he sold ghost DAO Tokens after encouraging retail investors to buy in, siphoning off over 17 million dollars of retail liquidity for personal gain. Furthermore, a faked DAO vote halted the project’s development, and misappropriation of funds became apparent as the promised donations to Logan Paul scam victims failed to materialize.
The once-hyped project began to crumble as major influencers, including Coffeezilla, withdrew their endorsements, citing broken promises, fundraising opacity, and a lack of community ownership. Community pressure forced Zaknun to issue an apology, attributing the setbacks to technical challenges and promising reimbursement to CryptoZoo victims once revenue materialized.
However, the apology seemed hollow as copyright strikes were issued against YouTube critics, indicating a reluctance to accept constructive feedback. Code audits further revealed remnants from CryptoZoo, raising suspicions that Zaknun might have been involved in that earlier scam.
Degen Zoo’s downfall exemplifies the pitfalls of crypto projects relying on charismatic leaders without fostering true decentralization. The lack of self-regulation within the crypto space allows bad actors to exploit the community, hindering the overall maturation of the industry.
As Degen Zoo teeters on the brink, regulators loom on the horizon. The project had an opportunity to showcase internal accountability and make victims whole, but its future now hangs in the balance. Will it rise like a phoenix from the ashes, or will it succumb to the warnings of skeptics, becoming another cautionary tale in the crypto world? The saga is far from over, and as the story unfolds, the lessons from Degen Zoo may shape the future of cryptocurrency investments. Stay tuned for the next chapter, which promises to delve into the alleged tax evasions committed by Christoph Zaknun.