ZachXBT calls to stay away from prediction market Rain: Token price suspected of manipulation, team associated with controversial figures

On June 5, ZachXBT issued a community warning advising users to stay away from the prediction market project Rain Protocol. He pointed out that the project has very few users, its product lacks market appeal, and it has no well-known backers, with the team having almost no experience in the industry. On-chain addresses show that the Rain team's funding sources are linked to Gems' hot wallet and exchange deposit addresses, which have previously transferred funds for failed projects such as Data Ownership Protocol and TOMI, indicating team overlap. Furthermore, the price of the Rain token appears to be manipulated, with on-chain addresses trading through Uniswap V3 liquidity pools and obfuscating transfer paths via Gems' hot wallet. Rain has a locked value of $27.2 million, but this is entirely composed of its highly illiquid native token. Rain announced a $212 million treasury strategy in November 2025, but lacks data support comparable to Kalshi or Polymarket. ZachXBT noted that TOMI, DOP, and Sirin Labs are all associated with controversial Israeli founder Moshe Hogeg, who was detained for fraud in 2021 and charged in 2023 in connection with a $290 million crypto scam. Gems is a suspicious launchpad that has hosted multiple failed projects and is currently conducting a presale for Kai Platform. DOP raised $162 million in its 2024 token sale, but after Kai Platform announced its acquisition of DOP, numerous retail investors complained about the unclear whereabouts of their funds.