ZkSNARKs NFT Project Accused of Extracting $17M from Investors

The zkSNARKs NFT project has raised serious allegations after on-chain investigator ZachXBT accused it of extracting approximately $17 million from investors while delivering virtually no utility or ecosystem development.

The project sold 8,000 NFTs at a uniform clearing price of 1.5 ZEC each, with the auction format attracting 16,971 bids for those available NFTs. The total volume clocked in at approximately 25,305 ZEC, translating to about $36.94 million at prevailing prices.

The project's structure adds another layer of concern, as a 10% team allocation means the creators reserved 1,000 NFTs for themselves, free of charge, before the public sale even began. A 5% royalty on secondary sales ensures the team continues to earn from every resale.