THELOGICALINDIAN - Snowdog has absent over 90 of its amount back the protocols planned badge buyback
Snowdog, a self-styled decentralized assets meme coin, has been accused of affairs the rug on its association afterwards abolition over 90%.
Snowdog Plummets 90%
SnowdogDAO has beatific investors addled this Thanksgiving.
The Avalanche-based OlympusDAO angle plummeted over 90% Thursday night afterwards the protocol’s planned badge acknowledgment resulted in a huge selloff.
Snowdog, which styles itself as a “decentralized assets meme coin,” accustomed users to excellent SDOG tokens at a discounted amount by depositing added assets as collateral. Snowdog admiring clamminess in abundant the aforementioned way as OlympusDAO, the aboriginal agreement to advance the alleged “liquidity flywheel” model. In contempo weeks, abounding OlympusDAO forks accept emerged on Ethereum and added blockchains amidst growing absorption in the protocol.
Snowdog differed from added OlympusDAO forks in that it only planned to be alive for eight days. The agreement appear on barrage that it would use all of the assets in its treasury afterwards eight canicule to arrange a “massive buyback” of Snowdog tokens advanced of transitioning into a meme bread by fractionalizing anniversary SDOG badge by a agency of one billion.
The planned acknowledgment resulted in abounding holders accumulating SDOG tokens in apprehension of a abundant amount increase. However, back the acknowledgment started backward Thursday, the Snowdog badge instead plummeted, eventually accident over 90% of its pre-buyback value.
The amount blast acquired abounding in the Snowdog association to accuse the developers of “pulling the rug” by application the acknowledgment to avenue their positions first, abrogation added investors ashore in their positions as prices crashed.
However, others accept refuted this accusation, advertence that the transaction abstracts does not appearance any affirmation of abhorrent play.
Early Friday morning, the Snowdog aggregation appear a post-mortem report account why the SDOG badge crashed. The developers apologised for declining to acutely accompaniment how the acknowledgment would acceptable affect prices. An extract of the address read:
“We capital to arrange an accident that could abduction the absorption of the crypto ecosystem while accretion ball to bodies watching it from the sidelines… For the $SDOG amount to be aloft bazaar amount afore acknowledgment (~$1200), sellers bare their $SDOG to be allotment of the aboriginal 7% of the accumulation actuality sold.”
With alone 7% of the SDOG accumulation accepting the abeyant to be awash at a accumulation during the buyback, abounding holders were affected to advertise beneath bazaar amount or face added losses, consistent in a 90% drawdown.
The post-mortem additionally categorical approaching affairs for the SDOG token, account how the aggregation aims to actualize abiding amount for holders. However, abounding association associates accept declared that they accept absent absorption in the activity afterward the crash. Whether the Snowdog association will be able to balance from the adventure charcoal to be seen.
