Arbitrum decentralized exchange IAO cancelation draws controversy

On April 26, Xirtam token’s scheduled initial airdrop offering (IAO) on the Arbitrum decentralized exchange AlienFi was canceled minutes before launch. 

It was not immediately clear which party was responsible for the cancelation. In a series of screenshots shared on Twitter, AlienFi alleged that, unbeknownst to the development team, Xirtam had conducted “a seed sale sold 3x+ below the Fjord price” before the scheduled IAO and Xirtam “decided to cancel” after AlienFi developers discovered the event, leading to a pricing dispute.

According to an April 20 post, Xirtam was scheduled for a two-part presale with liquidity protocol Fjord Foundry and a private-public sale with AlienFi. The IAO with AlienFi was scheduled for April 26 with a total raise target of 350 Ether (ETH) for 50 million Xirtam tokens. 

According to data from Fjord Foundry, Xirtam’s presale lasted between April 23 and April 26, drawing a total volume of $3.9 million. In a statement released on April 26, AlienFi developers said the launch was canceled “5 minutes before [it was] supposed to begin.” Cointelegraph has reached out to Xirtam for comments but did not receive a response by press time. None of the allegations mentioned in the story have been independently verified by Cointelegraph. 

In an initial airdrop offering, a pre-defined number of tokens is allocated for investors. Once purchased, the token is not sent immediately to the recipient’s address. Instead, after the sale ends, they receive an “airdrop” of tokens on a pro-rated basis, dependent on the amount of funds they contributed as a percentage of all funds contributed by other users. A pre-defined listing price is set pre-sale, which is then lifted after the sale ends and the token is listed.

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This is a developing story, and further information will be added as it becomes available.

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Written by Zhiyuan Sun on 2023-04-26 16:00:00.

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