RAIN Price Sinks as ZachXBT Alleges Insider Activity & Team Overlap

Well-known blockchain sleuth ZachXBT issued a warning on Telegram today, June 5, 2026. In the post, the sleuth warned the community to avoid Rain Protocol ($RAIN) at all costs. Rain Protocol is a prediction market project, which recently surged to an $8.8 billion market cap and cracked the top 15 cryptocurrencies. With this warning, the protocol faces serious allegations of team overlap with failed projects, price manipulation and suspicious on-chain activity.

What is Rain Protocol?

Rain Protocol is a decentralized prediction market that is built on the Arbitrum blockchain. It lets users create and trade on outcomes of future events, which could span from election results to sports scores. The project recently announced that it has had more than 28,000 users and $18 million in trading volume.

In November 2025, Nasdaq-listed biotech firm Enlivex Therapeutics unveiled a $212 million plan to accumulate RAIN tokens as its corporate treasury reserve asset, the first U.S.-listed company that has adopted a prediction-market token as its main treasury holding. This announcement sent RAIN’s price surging more than 120% in 24-hours.

Critics claim Rain can’t compete with bigger prediction markets like Kalshi and Polymarket due to its large valuation and smaller user base.

ZachXBT’s On-Chain Investigation Reveals Red Flags

ZachXBR traced RAIN team wallet addresses on-chain and discovered concerning connections to failed crypto projects. The investigation found that funds originated from the Gems hot wallet and centralized exchange (CEX) deposit addresses that previously moved money for troubled projects including Data Ownership Protocol (DOP) and TOMI.

ZachXBT found out the following red flags from his analysis:

• There is a wallet that is linked to the RAIN deployer that sent dust to address 0xa35e61cb836ae15f2d7d400efb49bda7222b98bc on October 14, 2025.
• The same address received funds in December 2025 from a wallet that was connected to a DOP multisig.
• TOMI team multisig addresses sent dust to the same recipient within minutes of the RAIN deployer’s transaction.

The sleuth also wrote “These transactions indicate potential overlap between teams.”

Price Manipulation Suspected Through Uniswap Liquidity Positions

ZachXBT also flagged suspicious price manipulation activity. He identified addresses linked to the RAIN deployer, creating Uniswap V3 liquidity positions with spot transfers obfuscated through the Gems hot wallet:

0x7c10f934c84a0aefaffd3334463c245a311cc967
0x7706342d38d3fd957c7061ac87a98f21f1cb53aa

“I do not encourage trading these types of tokens as you only provide exit liquidity for insiders,” ZachXBT warned.

Team Ties to Controversial Israeli Founder Moshe Hogeg

The investigation also uncovered a disturbing connection to Moshe Hogeg, a highly controversial Israeli crypto entrepreneur. Hogeg was detained in 2021 for cryptocurrency fraud and later accused by Israeli law enforcement of a $290 million crypto scam in 2023.

TOMI, DOP, and Sirin Labs all trace back to Hogeg who faces multiple lawsuits from former business partners and employees. Israeli police recommended charges against him for aggravated fraud, theft, money laundering, forgery, and tax violations.

“RAIN’s team appears tied to Enlivex and Gems.vip, which I describe as sketchy,” ZachXBT said, adding that the co-founders have limited prior crypto industry experience. “You do not appear with 9 figures of capital out of nowhere,” he noted.

Gems.vip Launchpad Under Scrutiny

Gems.vip, the launchpad that hosted RAIN’s presale, has also drawn criticism. The platform has hosted multiple projects linked to Hogeg’s network, including DOP and TOMI.

Gems is reportedly launching a presale for Kai Platform soon, which recently announced it acquired DOP, though it remains unclear where DOP’s reported $162 million token sale proceeds went. Numerous retail investors have complained on social media about DOP’s token launch.

Real User Traction Questioned

Even though Rain Protocol claims of being the “third largest prediction market,” DeFiLlama reports RAIN’s total value locked (TVL) as just $27.27 million on Arbitrum, entirely in its own illiquid native token with only $1 million in annual fees.

By comparison, Polymarket boasts $259 million in TVL, while Kalshi recently raised $1 billion at an $11 billion valuation. Rain has no comparable metrics to justify its $8.8 billion market cap, critics argue.

As of now, no response has been issued by the Rain Protocol as a response to ZachXBT’s allegations. ZachXBT’s warning has gained rapid attention across the crypto social media and the price of the rain token has dropped down significantly.

At the time of writing, the price of the token stands at $0.01346 with a drop of 4.6% in the last 24-hours as per CoinGecko.

“I do not advise trading them under any circumstances,” said ZachXBT, warning about the rising trend of price manipulation with no consequences.