PANews reported on June 5th that 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, it has no well-known backers, and the team has almost no experience in the industry. On-chain addresses show that Rain's team's funding sources are related to Gems hot wallets and exchange deposit addresses. These addresses have transferred funds for failed projects such as Data Ownership Protocol and TOMI, indicating overlapping teams. In addition, Rain's token price appears to be manipulated, with on-chain addresses trading through Uniswap V3 liquidity pools and obfuscating transfer paths through Gems hot wallets. Rain's total value locked is $27.2 million, but all of it is its native token with extremely poor liquidity. Rain announced a $212 million treasury strategy in November 2025, but lacks supporting data comparable to Kalshi or Polymarket.

ZachXBT points out that TOMI, DOP, and Sirin Labs are all linked to Moshe Hogeg, the controversial Israeli founder who was detained for fraud in 2021 and charged in 2023 with a $290 million crypto scam. Gems is a dubious launch platform that has hosted numerous failed projects and is currently conducting a pre-sale 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 whereabouts of their funds.