🤯 Scammed by a Rabbit?!

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TLDR; Coffeezilla accuses Rabbit Inc. of funding its latest product Rabbit R1 with money acquired from a previous scam project. Specifically, recordings have surfaced of Rabbit CEO Jesse Lyu discussing GAMA, an NFT project that lost its customers millions.

👉 What the fact?!

Ever since the launch of the Rabbit R1, the AI companion product has been surrounded by controversy.

It’s a product aimed at speeding up everyday tasks such as ordering rides, food, and even shopping online—all via voice input.

However, customers have so far been met with disappointing performance as most of these features weren’t actually working.

As if that wasn’t enough, yesterday, May 22nd, Coffeezilla released a video detailing how the company was also behind GAMA.

GAMA was an NFT project that, simply put, promised the world but delivered on almost nothing. To make things worse, Jesse Lyu promised to refund any unsatisfied customers but once again didn’t deliver on the promise.

💡Why it matters

Three reasons:

• Refunds: GAMA customers were promised refunds that were never realized. Essentially turning the project into a scam.

• Rabbit financing: The money earned from non-refunded GAMA customers was allegedly used to fund the development of the Rabbit R1.

• Track record: It proves Jesse Lyu has a track record of not following up on his promises, potentially turning Rabbit R1 into a scam as well.

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🔥 Potential impact

The Rabbit R1 has recently started reaching its customers. And as tech YouTuber MKBHD put it, it’s a “barely reviewable product”.

The immediate impact is, of course, sales numbers. Rabbit Inc. will likely see a massive dip in customer interest, and order numbers will decrease.

More interesting, however, is what this means for its customers. Will we see refunds issued to GAMA customers, improvements to Rabbit R1, or any public comment on the allegations?

Ultimately, as this is still a developing story, only time can tell what will happen. However, one thing is sure: companies will likely see the Rabbit Inc. saga as a cautionary tale of what not to do.

We’ve seen a great increase in AI companions/wearables lately, and the Rabbit R1 might just put an end to it as companies reevaluate how they release these types of products.

Speed of development and being first to market are important, but they should never take priority over-delivering on promises.

👋 See you next Tuesday!

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