Pike Finance’s token creation event was held on Monday with an initial liquidity of just $10,000. Early investors have voiced their complaints about this lack of liquidity as they have seen the altcoin’s value plummet.

Investors Showed Their Reactions

Pike Finance’s early investors were not happy with the event, with only $10,000 in initial liquidity being provided on the Aerodrome decentralized exchange on Base. Due to limited liquidity, the altcoin’s price quickly dropped to around $0.0035, a drop of nearly 90% according to DEXScreener data.

The project raised close to $6.5 million in a token pre-sale in March 2024. Participants purchased the tokens at prices ranging from $0.0280 to $0.0374. Some investors expressed disappointment that the project had raised such a large amount but was launched with such little liquidity. Amid the price drop, investors expressed their criticism of the project. This led a user named “Picolas Cage” on the X platform to call on blockchain researcher ZachXBT to look into the incident.

Announcements and Plans About the Event

Immediately after the token creation event, Pike Finance announced the event on X and noted that the token was available on the Base network. The altcoin team announced that they “implemented a new playbook for the Pike token launch.”

In another X post, Pike Finance co-founder Terryljm can be seen trying to calm investors on a Discord channel for presale participants. Terryljm said their team plans to purchase Pike tokens on the open market and “use the remaining circulating collateral from the refund offering” to support liquidity. He emphasized that this will be a “phased effort” that will take months.

The team behind Pike Finance has also developed other crypto projects such as ACokonut, Tapio Finance, and Taiga Protocol. ACokonut launched in 2021 and experienced a similarly dramatic price drop before failing to recover. Additionally, the project’s website is currently offline.

Security Issues and Losses

The token launch isn’t the latest problem Pike Finance has faced since its founding. Following the pre-sale, the project was hit by two attacks targeting vulnerabilities in its smart contracts. According to security firm Halborn, $300,000 was stolen in one attack and around $1.6 million in the other, for a total loss of around $1.9 million.