ZachXBT warns of risks associated with Rain Protocol: It is advised to avoid the platform, as Rain's price may be subject to on-chain manipulation.

According to Mars Finance, on June 5th, on-chain detective ZachXBT issued a community warning advising users to avoid contact with Rain Protocol (RAIN) "at all costs." He stated that while RAIN currently has a market capitalization of approximately $8.8 billion, ranking in the top 15, as a prediction market, it has a small user base, limited product traction, and lacks well-known supporters. The team also lacks verifiable credentials in the crypto industry. After tracking RAIN's on-chain addresses, he discovered that related funds originated from Gems hot wallets and CEX deposit addresses. These addresses had previously transferred funds for failed projects such as Data Ownership Protocol (DOP) and TOMI, indicating potential overlap between teams. ZachXBT also stated that RAIN's price appears to be subject to on-chain manipulation, with related addresses linked to deployers via Uni V3 LP, and spot transfers obfuscated through Gems hot wallets. The report states that RAIN owns a DAT called Enlivex, a Nasdaq-listed company that announced a $212 million treasury strategy in November 2025. However, compared to prediction market platforms like Kalshi or Polymarket, Rain Protocol lacks comparable metrics to support this scale. DeFiLlama data shows RAIN's TVL on Arbitrum is $27.2 million, but the report claims this TVL consists entirely of under-liquidated native tokens, with annualized fees of approximately $1 million. ZachXBT points out that TOMI, DOP, and Sirin Labs can all be traced back to their controversial Israeli founder, Moshe Hogeg. He was detained for fraud in 2021 and charged by law enforcement in 2023 with involvement in a $290 million crypto fraud scheme, while also facing multiple lawsuits from former business partners and employees. The report states that the recent trend of projects aggressively manipulating prices without accountability is worrying and advises against trading such tokens under any circumstances.