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Crypto Community Alleges Token Dumping by Filecoin

A recent offering by Filecoin – the decentralized storage network, has been brewing controversies on account of token dumping. Some crypto community members allege that 1.5 million tokens were received by an unknown account when only 500,000 were due for unlocking. There have also been reports stating that out of 1.5 million tokens, 800,000 were transferred to other exchanges.  

According to 8btc.com – a Chinese portal, a Filecoin representative commented, “it [the decision to move coins] is to establish an independent market maker to (help) maintain a stable price in the early stage of the project, because the price may be the most unstable at this time. At the same time, these coins are not a sell-off of FIL by Filecoin.

As per the allegations, Filecoin tokens were also transferred to other exchanges apart from Huobi. In one of their blogs, Filecoin further explained that “the network has now entered a quiet post-launch monitoring period to ensure the network is operating smoothly”. It further adds that “network is stable and community members are reporting successful operations”.

Filecoin sees massive price drop

Inspite of the plan, the projected stabilizing strategy didn’t succeed in keeping the token price from dropping down. According to Binance trading data, the token opened at $200 but dropped to $42 at the time of writing. The sharp decline from the opening price prompted complaints and allegations of impropriety.  

In addition to the allegation, controversial Justin Sun insinuates that one Juan Benet and others at Filecoin had exit scammed. He further tweets:

“Exit scam here? 1.5 million $FIL for 200 USD each worth 300 million USD at the high. Now (the) price is below 60 USD. 70% down. No lock-up. No announcement to the community. How much do you sell? Is this ok?”

Adding to the controversy, news reports on October 16 state that scammers may have forged FIL tokens. In response to that Filecoin team said the project was started to help “store humanity’s most important information.” The project raised $205 million in an initial coin offering in 2017, and while the launch date was initially planned for mid-2019.

Disclaimer: CoinCrunch.in content is informational in nature and is not meant to be investment advice. Buying, trading or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their due diligence before making any decisions. © 2020 CoinCrunch
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