Twitch Streamer and NFT Founder DNP3 Admits to Gambling Away Investor Funds
His projects, including The Goobers NFT and charity-focused cryptocurrency CluCoin, were down following the announcement.
Twitch streamer DNP3, which founded several crypto projects including The Goobers NFT, metaverse platform Gridcraft Network and charity-focused cryptocurrency CluCoin, admitted to gambling away investor funds on Tuesday.
In a statement posted to Twitter, the founder said he had become "incredibly addicted to gambling."
"Every dollar I could find I would put into [crypto casino] Stake in hopes of winning big," he wrote. "Even when the big wins did happen it wasn’t enough. Eventually, I lost everything. In addition to my own life savings, I also irresponsibly used investor funds to try and 'get my money back' from the casino, which was wrong for so many reasons."
"I am now completely broke both financially and spiritually. My sense of trust in myself is compromised," he added, saying that he was working with a help group to begin a "path to recovery."
It's unclear how much money has been lost. The price of CluCoin plummeted by 63% following the announcement, while The Goobers project saw its market cap dip by 9%. According to OpenSea, The Goobers has done 968 ETH in total sales volume, or roughly $1.1 million.
The news recalled other crypto projects, including NFT launchpad Onepad, that were forced to shutter after its founder gambled away funds.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.