Cardano Platforms, SundaeSwap and CardStarter Fight After Flouting Promises To Investor
Two projects that are building on Cardano, SundaeSwap, and CardStarter have taken their fight to their social media channels, to the chagrin of ADA stakeholders and enthusiasts. The genesis of the issue can be traced to April 2021 when...
Two projects that are building on Cardano, SundaeSwap, and CardStarter have taken their fight to their social media channels, to the chagrin of ADA stakeholders and enthusiasts.
The genesis of the issue can be traced to April 2021 when CardStarter, an accelerator program on Cardano, stated that it was releasing its DEX to the public. They announced that investors that provided liquidity for the project on UniSwap will get the native tokens, CSWAP.
CardStarter team entered into an agreement with another DEX called SundaeSwap, claiming that the collaboration was a “merger”. With this collaboration, CardStarter believed that there was no need to develop its custom DEX, and instead, the liquidity should be offered to the DEX that was set up by SundaeSwap.
A Reddit user, by the name, “Environmental-Law768” stated that the team made a YouTube video, offering the investors that had provided liquidity and held CSWAP tokens in SundaeSwap “great benefits”.
It was recently revealed that the benefits were a mere conversion from CSWAP to CardStarter’s native CARDS tokens ($3.14 at the time of writing), at a rate of 400:1.
Investors that had locked over $10 million, as of the time of writing this, believed that the rewards were inconsequential, and this raised allegations of a rugpull by the team.
Both projects have blamed each other for the scenario, and they have taken to their social media pages to state this. The public squabble has attracted the attention of community members and even the Cardano founder, Charles Hoskinson.
CardStarter has released a screenshot on Twitter of a conversation with the SundaeSwap team.
SundaeSwap responded with a tweet thread,
“In light of recent events, we’d like to share two important details. First, we have not been contacted by CardStarter since January 19. Second, we remain available to help CardStarter address the concerns of their investors and integrate their liquidity with the SundaeSwap DEX.”
They announced that the collaboration was not a merger, unlike CardStarter made it feel.
“Finally, just to correct any speculation, SundaeSwap and CardStarter entered into a “Marketing and Collaboration Agreement” in June 2021. This was not in any sense a “merger” of the two entities, as explained in our own announcement about the agreement.”
Some community members are speaking of suing the company.
“To all victims of the massive FRAUD caused by the Cards Team regarding CSWAP “deal”, please join TG group, we are preparing the class-action lawsuit.”
Charles Hoskinson released a YouTube video on the scenario, asking both parties to participate in an arbitration session, and if that doesn’t work, they should head to the courts.
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