A digital asset treasure tapping an increase of $ 401 million for the AI zero gravity blockchain has actually reported much less – a red flag for investors.
Posted on September 29, 2025 at 4:51 p.m..
On September 19, Flora Growth Corp. (Nasdaq: FLGC) announcement An increase of 401 million dollars to launch the first cash company of digital assets has focused on 0G, the native token of zero gravity blockchain focused on AI, and is renamed like Zerostack.
In a presentation of the investors obtained by Unchained, the company presented itself as “MSTR for the AI era”.
But there is only one problem. It seems that the company has reported only 3% of this money from new investors. A narrow reading of 8-K Posed with the Securities and Exchange Commission (SEC) on the same day, the distribution provides the break:
- The only new “money” brought was $ 13.66 million in a private placement To investors such as DAO5, ABSRACT Ventures, Capital Dispersion, Blockchain Builders Fund and Salt.
- Another date, Defi Development Corporation (DFDV), contributed to $ 22.88 million in Solara tokens recycled via a private placement that pays a coupon of 8% and has a convertibility function.
- Zero Gravity Labs Inc., the for -profit development company behind the blockchain Zero Gravity, gave a private placement in kind of $ 150 million of 0 g.
- Zero Gravity Labs also granted 8,546,955 pre -tied mandates (at a price of $ 25.19 each) payable in a 0g token at a mutually agreed price of $ 3 per token that on paper would be $ 215.3 million.
- A Separate purchase contract Placed to the SEC does not appoint the mandate buyer, but the presentation of investors indicates that the founders of the project agreed to provide Zerostack with $ 300 million in chips, or 10% of the total offer of a billion tokens, assuming a $ 3 token price.
Even in the world of date, which are becoming more and more opaque and complicated, several experts said that this particular company had raised unprecedented red flags. Said one approached the investor who refused to be identified in an interview: “This is the ultimate grade.”
This story is an extract from Bits + Bips Newsletter.
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The two largest red flags
A liquidity escape
As the DAT becomes more saturated, entrepreneurs are increasingly examining long -tailed assets for the opportunity. A date, called an interactive force (TRNR), even concentration On another Ai-Token, fet. But what is unique about Zerostack is that it almost launches simultaneously with the blockchain itself. Zero Gravity’s Mainnet only went to live On September 21, two days after the publication of the DAT financing announcement. In fact, Unchained was unable to identify any other date that was launched before his blockchain that accompanies him.
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Why is it dangerous for investors? Two reasons.
First, younger projects are intrinsically more risky, especially with regard to crypto. But secondly, and above all, this arrangement gives the founders of the blockchain who “invest” 0G tokens in Zerostack a first liquidity opportunity which can create questions about their long -term alignment with the project.
Like the purchase options in a private company, the founding token allowances are generally locked and acquired over several years. This process serves the double objective of keeping the key teams and members committed over longer periods and the limitation of the tokens supply to support the price.
A date like this allows initiates to exchange “locked” tokens for liquid equity is a flaw against the spirit of locking. “Normally, what the founders do, that is to say more than four years, right? A one year cliff, followed by a three-year monthly vest,” said the investor. “The scam here is that you put it in this date, you pull (liquidity) forward and that you can sell public shares after your registration.” Another industry expert said: “If you mainly exchange this by equity that you can then sell once the registration declaration is effective, do you go around these acquisition rules?”
A third added: “Obtaining instant liquidity for something that was going to take several years is a major and major problem right now with industry.”
Why $ 3?
Another key question is why the 0G tokens invested in the date were worth $ 3 each. The deposit of the SEC can be read as follows: “The investor recognizes and agrees that the fair market value of each token will be considered to be US $ 3.00 in accordance with the mutually agreed assessment by the company and investors.” Given the offer of 1 billion tokens, this price gave the project an assessment of $ 3 billion even before its online. Even in the sparkling AI world, which is considered excessive by industry experts. “They agreed to give a value of $ 3 for each 0G token before the token was even really launched and put online. How they found a kind of real value, I have no idea,” said one of them.
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According to a framework of a crypto trading firm, the trading of the launch token, which occurred on the binance of the exchanges of crypto and the bitget, was fluid and free from any manifest sign of price manipulation. “It looked like a decent launch on the scholarship because the market has returned within a reasonable time to a level very close to the driving of the place where it was put online,” said the frame.
However, since the start of trade on September 23, when he made his debut at $ 5.00, the price was blocked in a downward model. To date, it is $ 2.80 on Binance and has been down 43.28% since its launch. It was also on average just over $ 100,000 in daily trading volume. FLGC fell 32.05% during this period.
What comes then
Pain might not be over for Zerostack either. Friday officially marked the closure of the fund collection period, where they only raised $ 13.67 million, or perhaps just over 35 million dollars if you count the Development Corp soil. a target increase of $ 100 million (see the bridge of investors above).
Then, this new commercial arrangement will be formalized, then register the actions sold via the pipe and other placement programs for sale at the dry, probably by submitting another form called S-3. Once this happens, investors will be free to empty these actions on the market.
If history is a guide, the market will not react well. Pipe investors in previous date such as Upexi (Upxi), Sharplink (SBET) and Bitmin immersion (BMNR) caused a drop in the price of these shares at least 40%. Zerostack investors can try to operate for outings if the price of the token or stock continues to drop.
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It should also be noted that nor the presentation of investors obtained by Unchained or the DEC documents mention nothing about the locking of the actions for the founders or the key executives.
The representatives of Zerostack and Zero Gravity Labs did not respond to requests for comments from Unchained.
