HNTR’s successful token launch, while launchpad partner breaches contracts
Hunter Token, the world’s first provider of a digital firearms trading token successfully launched on the 14th of October this year. Hunter Token is the first blockchain-based utility platform that offers an ecosystem for IP-licensed firearms to be bought, sold, and traded for collectors and firearms enthusiasts.
To achieve this Hunter Token engaged with several launchpads and exchanges to distribute tokens, these launchpads came from trusted sources and we were confident we would have a successful launch and strong community growth. But this wasn't the case for one particular launchpad, Fantom Live (https://app.fantomlive.finance/)
This article will help you understand how HNTR was misled by Fantom Live launchpad and what future token launches can do to avoid being scammed in the future.
On October 12, 2022, Hunter Token engaged with launchpad “Fantom Live” to launch a $50,000USD raise of the HNTR Token on their platform. Terms were agreed upon and contracts were exchanged. Put simply the terms were IDO price set at 0.02 and an 8% fee for marketing and associated admin costs. And with the added condition of HNTR holding the floor price for 24 hours to protect their investors. In the event of not holding floor the Fantom Live community buyers would be refunded and tokens returned back to us, minus the 8% marketing fee. All easily achievable, so what went wrong?
A concern was raised on launch that the selling pressure was higher than expected and HNTR market makers were battling an unexpected series of high sell transactions that were more than vesting schedule allocations which led the HNTR DEV team to investigate blockchain transactions. The best part about the blockchain is that you can't hide misconduct! This investigation unveiled some concerning evidence of Fantom Live transactions outside of the contract.
Post-launch Fantom Live inform us of $35,008USD raise and 1,750,400 HNTR was sent to wallet 0x2632c87d4317037afdfb1002ffeb01c77724dac4 (BSCscan)
Further to the above, on the 13th of October 01:55 UTC, 11hrs before the agreed time of 14th Oct 12:00 UTC it was unveiled that a bulk send of 875,214 HNTR occurred. Again, this was outside of agree terms. (BSCscan)
Note: Launchpad Distributed 100% of tokens — Vesting Agreement was 50% TGE > 50% 30 days, ultimately distributing tokens to then dump on Pancakeswap soon as liquidity was added.
Evidence of remaining transfers outside of Bulk send sold all HNTR
It would seem launchpad scams are not new, and while the vast majority of launchpads are reputable and of high regard, a minority casts a dark shadow on the industry. Recent research shows more evidence of similar industry-first projects being scammed by the same launchpad providers, and it’s just now becoming more prevalent with new upcoming cryptocurrency launches. This type of scam typically involves an individual or company that promises to help you get your idea off the ground with funding, mentorship, and resources. All you have to do is pay them a small fee upfront, and if they stick to their contract, is mutually beneficial for all investors.
After reviewing the above evidence HNTR made several well-documented attempts to make contact with Fantom Live launchpad owners which have resulted in either poor communication, progressing to, or complete silence. At all stages of our pleas to resolve the matter, the Hunter Token business wishes only to revert to the contract and recover the following: Return HNTR tokens less 8% fee OR return of BUSD less the 8% fee. This fell on deaf ears.
An outcome was attempted on several occasions post the above request however was unable to be resolved, Fantom Live agreed to pay back a portion, but with terms to give them more tokens which they could use to further dump token price.
Extract from TG chat with FantomLive CEO (Oct 26th 2022)
“When discussing with Fantomlive team, we give the following solution for Digital Arms team:Fantomlive will release 30% Raise Funds for Digital Arms after refunded for user 70% of the investment in Digital Arms project.Release fund: 30% * 35,008 = $10,502.4Launchpad fee (8%): 8% * 10,502.4 = $2,800Remaining Refunds: 10,502.4–2,800 = $7,702· Dumped Price (50%): 50% * 7,702 = $3,851Total release fund to Digital Arms: $3,851 + $8,750 (875,000 HNTR) = $12,601
Besides, Digital Arms must Airdrop 50% of 1,750,000 $HNTR is 875,000 HNTR to investors who have sold losses.And FantomLive will release for Digital Arms amount 12,601 BUSD.”
The above statement indicates extortion at its finest that the Fantom Live launchpad are not willing to assist with return allocation and our due diligence dictates that we must proceed to inform our community along with current and future partners that partnering with FantomLive carries a high risk of exposure. There are also many cases where these launchpads scam new projects out of funds by promising them false rewards and incentives if they donate more money than they originally asked for. This leads to some creators giving up on using launchpads at all, maybe this is a shift in the way tokens are launched.
With all the above happening, this is a small bump in the road and we promise to keep fighting. More importantly, we want to thank our loyal and strong community of investors, and look forward to growing this business with you!
We welcome your feedback, and experience with launchpads, please let us know > support@hunter-token.com
