The Pike Finance team added the equivalent of $10,000 to the liquidity pool on the Aerodrome platform on the Base network. Such a low value led to the collapse of the DeFi project token by 94.1% after TGE.
Trading began at $0.02427. After 20 minutes, the rate fell to $0.001436. At the time of writing, quotes have recovered to $0.01261.
Some investors expressed dissatisfaction with low liquidity, given collected $6.5 million during the presale in March. Within its framework, token purchase prices ranged from $0.0280 to $0.0374.
I put $1500 into the @PikeFinance pre-sale.
It’s currently worth $61.
The pool was seeded with $10k and installed in the first 30 mins.
I’m far too tired but can someone just sue these people please.
— Picolas Cage (@Picolas_Caged) September 30, 2024
Others called on blockchain analyst ZachXBT to look into the situation.
Hey @zachxbt would love for you to take a look @PikeFinance .
Raised 6million USDC just added LP for TGE months after with 10k USDC Liquidity.0x4d014d49418be6d918c45651ebfd26e47ceea957$PIKE
Address related to the raise— Control (@controlloor) September 30, 2024
In response to criticism, the team promised to purchase Pike tokens on the open market to increase liquidity. The spokesman warned that this would be a “progressive work” that would take several months.
IN The Block recalled that Nuts Finance, the company behind the project, has developed several other protocols, including Tapio Finance, Taiga Protocol and ACoconut. The latter was launched in 2021 and experienced an equally sharp drop in the token. The asset has not recovered, and the platform website is not working.
On April 30, attackers attacked Pike Finance and withdrew 99,970 ARB, 64,126 OP and 479 ETH for a total of about $1.68 million.
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Source: Cryptocurrency
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