FaZe Clan's "Save the Kids" crypto token considered a scam

FaZe Clan's

This story about undue influence, boiled down, in 2:00 minutes.

What's the fuss?

Members of the insanely popular esports organization FaZe Clan and other social media influencers promoted a "charitable" crypto coin that has since plummeted in value. Given their fanbase consists of impressionable young fans, this sets a dangerous precedent.

The situation

Corresponding with the boom of Bitcoin, new cryptocurrencies (i.e. altcoins) seem to be flooding the market with almost 9000 of them being publicly listed as of March 2021. 

To promote the coin, Save The Kids hired popular gamers from FaZe Clan and other social media influencers to tap into their millions of followers, most being minors. 

Boiling it down

Literally anyone can make an altcoin, provided you take the necessary steps. 

  • The relatively low barriers to entry allows for the nefarious to use altcoins as a vehicle for pump-and-dump schemes, using online influencers as a way to artificially jack up the price before a massive selloff.

To the new generation, online personalities such as YouTubers and Twitch streamers increasingly exceed movie stars and musicians in terms of "celebrity". 

  • These influencers are often more relatable by creating content that directly engages with their target audience.
  • In particular, gaming influencers tend to attract a younger audience, who are often more impressionable and eager to support their favourite influencers.
  • Lately, we've seen a wave of crypto-sponsored YouTube and Twitch creators "scam" their audiences with cryptocurrency advice, causing their fans to collectively lose a lot of money.

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