- Crypto community alleges token dumping during Filecoin’s offering
- The price of Filecoin’s token tanked a few hours after it was listed
- Justin Sun of Tron wants the U.S SEC to investigate the coin offering
Tron News Today – Filecoin’s (FIL) recent token offering has created controversy as the crypto community is alleging that an unknown user account received 1.5 million tokens at a time when there were only 500,000 due for unlocking. The report adds that 800,000 tokens of the 1.5 million tokens were transferred to Huobi and other digital asset exchanges. According to 8btc.com, an unidentified representative of Filecoin insisted that the decision was made to stabilize the token’s price post listing. The representative said:
“It was done to create an independent market maker that will help maintain price stability in the early stage of this project. The price may be mostly unstable currently. Similarly, these tokens aren’t a sell-off of FIL by Filecoin’s network.”
Community Members Have Reported Successful Operations
As part of its stabilizing plan, FIL tokens were sent to other exchanges as well. The Filecoin team explained via a blog post that the network is in a quiet post-launch period (a situation that it’s monitoring to make sure the network is smoothly operating). It also added that the network is now stable and the community members have begun to report successful operations. Despite the plan, Filecoin saw its price drop sharply only a few hours after it was listed. The envisaged stabilizing plan failed to stop the coin’s price from declining.
According to Binance’s trading data, the token opened at $200 which was the highest point. At press time it had dropped to $42. This sharp drop from its opening price has prompted many complaints and reports of impropriety.
Justin Sun of Tron wants the U.S SEC to investigate the coin offering
A notable critic of Filecoin’s token offering is Tron’s Justin Sun. Sun has insinuated that Juan Benet and his colleagues at Filecoin had carried out an exit scam. According to his Tweet:
“Is there an exit scam here? About 1.5 million FIL for $200 each worth $300 million at the high. Now prices are below $60. 70% down. There’s been no lock-up or announcement to the community.”
Sun, who has previously faced similar allegations, encouraged investors (particularly those from the U.S) to make sure Juan Benet and Filecoin are held responsible for the exit scam (token dumping). He claimed that they are liable under the stipulations of the US SEC (Securities and Exchange Commission).” Several Twitter users agreed with Sun. Others were quick to remind Sun of his past misdeeds.
However, in another tweet, an undeterred Sun backed up his claims that Filecoin’s developers disregarded the regulations by dumping more than 1.5 million tokens. In another twist regarding the controversy, reports show that on October 16 scammers may have duplicated fake FIL tokens for their use.