DeFi platform Arco Protocol launched on Aptos Blockchain goes down along with its Discord channel after a failed fundraise during its initial DEX offering (IDO).
Arco Protocol noted that at the beginning of the IDO sale, there were more than 300 people deposited at the same time, and that caused network congestion and delay in claiming of $ARC token.
People started to panic because some of them didn’t receive $ARC tokens after claiming. The team then updated the smart contract with a new parallel distribution feature and promised contributors that they will send tokens later manually.
“But the thing that hurts us the most is even though our team members are working very hard to build a long-term project with AAA quality products, some contributors call us scammers, and even some media hints that we plan to run away with funds,” Arco Protocol tweeted.
A few of Arco Protocol’s partners have ended their partnerships due to this issue including potential partners MEXC, Houbi, and Gate, as well as announced partners Wormhole and Celer network.
The platform now offers three choices for the community for them to act accordingly:
- We don’t trust, Refund.
- We trust, Keep building!
- Fully run by the community
At the time of writing the refund option is standing at 48.6% on the Twitter poll which would push the team to refund the community after the disastrous fundraiser.
Arco Protocol stated “However, no matter what you choose, please keep in mind that ArcoFamily was once the largest and most successful community on Aptos. We were united, unstoppable, and stronger than any other project.”
The Aptos blockchain on which Arco Protocol is built is already facing criticism from the community for its tokenomics with the native APT token’s price dropping about 50% upon its debut.
