A project only provides $10,000 in liquidity when TGE despite raising $6.5 million
On the morning of October 1, the Pike Finance project was accused of defrauding the community when it only provided initial liquidity of 10,000 USD despite successfully raising 6.5 million USD in March 2024.
After the TGE token P project was listed on the Aerodrome DEX exchange of the Base blockchain, the token price quickly plummeted due to low liquidity. Within the first 4 hours, the token price was only 0.0035 USD, losing about 90% of its value. However, the token price has gradually recovered and reached 0.0068 USD, with a total market capitalization of only 2.3 million USD.
Compared to the crowdfunding, the community bought the token at an average price of $0.0280 - $0.0374, with an expected market capitalization of $90 million before the TGE. This means that almost all investors in the project's pre-sale are losing 40 times their purchase price.
“I put $1,500 into the PikeFinance pre-sale and now the tokens are worth $61. Liquidity is only $10,000 and it was drained in the first 30 minutes,” wrote X user Picolas Cage.
Pike Finance has published a series of articles explaining that the TGE is part of a strategy to protect investor and team allocations. The project will buy back tokens from the market as they currently do not own any tokens from the TGE.
Nuts Finance, the team behind Pike Finance, has developed several other crypto projects including ACoconut, Tapio Finance, and Taiga Protocol. ACoconut, which launched in 2021, also saw a similar dramatic drop in token price, with its value never recovering and the project's website going offline.
Can the project salvage the token price from its pre-sale low?
