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SatoshiVM and IDO platform Ape Terminal controversy summary! Token SAVM once plummeted 50%

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SatoshiVM and IDO platform Ape Terminal controversy summary! Token SAVM once plummeted 50%

Recently launched SatoshiVM utilized Ape Terminal last week to conduct its initial DEX offering (IDO) and sell its token $SAVM. However, disputes between the project team and the platform led to a sudden 50% drop in the token price. It is reported that the former accused the latter of blatant fraud, while the latter counterclaimed that the former targeted the token sale for profit in the tens of millions.

Background: What is SatoshiVM?

SatoshiVM is a Bitcoin Layer 2 solution based on contributors, supported by Zk Rollup technology, and compatible with Ethereum Virtual Machine (EVM). The goal is to link the EVM ecosystem with the Bitcoin network, allowing developers to build on top of SatoshiVM just like on Ethereum.

More details: Bitcoin Native EVM-Compatible Rollup SatoshiVM, a step-by-step guide on how to enter the ecosystem cross-chain

Origin and Process of Controversy

Initially, as a decentralized fundraising and launchpad platform, Ape Terminal specifically provides IDO services to new crypto projects, including the sale of SatoshiVM's SAVM token, which was launched on January 19th.

With the support of many crypto KOL platforms, the buzz and price of SAVM gradually increased from around $9 initially to about $14.

SatoshiVM Advisors Accuse Ape Terminal of Deceiving Users

The controversy started when a KOL named "MacnBTC," claiming to be a SatoshiVM advisor, tweeted accusing Ape Terminal of allocating all IDO tokens to their 10 internal staff instead of the promised fair draw from 200,000 wallets.

He also retweeted another tweet suggesting that 5 out of the 10 winning wallets had similar sales patterns and timing, hinting at possible collaboration:

While they refunded us the remaining SAVM tokens, they still made millions by selling tokens from the winning wallets and collecting draw fees.

Ape Terminal: MacnBTC is the one profiting from manipulation

Ape Terminal countered, stating that they never independently sold SAVM tokens and accused MacnBTC of making tens of millions from the token sale.

Additionally, Ape Terminal provided a Google document with numerous screenshots as evidence:

MacnBTC held a significant amount of unlocked SAVM, sniped the tokens at launch, distributed them to friends, and made tens of millions within a day.

They added, "MacnBTC is also not an advisor to SatoshiVM but the founder of his own project."

Furthermore, Ape Terminal referenced an analysis by rug.ai on the 23rd regarding the SAVM token, detailing the profit distribution among involved parties, token allocation, and potential risks:

  • SatoshiVM team: $4.71 million
  • KOLs: $4.83 million
  • Snipers: $15.2 million

Contract owners can still mint coins, most liquidity remains unlocked, the top 2 holders own 31% of the total supply. These points indicate potential risks associated with the SAVM token.

SatoshiVM Official Response: Hosting an AMA

In response to the controversies and the plummeting token price, SatoshiVM's official Twitter account stated:

There have been many incorrect information circulating about the development team and the details of the SAVM token release. We plan to release our research paper tomorrow at 1:00 AM Taiwan time and host an AMA to provide transparency and support.

ZachXBT: Issues on Both Sides

Blockchain detective ZachXBT criticized both Ape Terminal and MacnBTC for being dishonest with users and followers.

He had previously warned SatoshiVM users about over 200 KOLs promoting the SAVM token, cautioning against becoming the bagholders.

Over 200 KOLs received SAVM tokens from the SatoshiVM project team, ZachXBT: beware of becoming the dumping target

SAVM Token Price Plunges Over 50%

According to CMC data, amidst the ongoing accusations, the official SAVM token price dropped from around $12 at its peak on the 24th to a low of about $6, marking a 50.45% decline.

At the time of writing, SAVM has rebounded to around $8.4.