Solend Founder Slams Alameda for Manipulating Token Price in IDO

  • Rooter, the founder of Solend, revealed that Alameda manipulated the Solend IDO.
  • Addresses affiliated with Alameda injected an $80M code on the first day but withdrew the funding on the second day.
  • The alleged action by Alameda hurt Solend by scaring potential investors.

The founder of Solend, Rooter, revealed that Alameda Research, an asset management firm founded by Sam Bankman-Fried, suddenly withdrew $80 million at the final minute before Solend IDO ended, claiming that Alameda’s action hurts Solend to boost their profits.

An Initial DEX Offering (IDO) is a way for projects to sell their recently developed cryptocurrencies to the community via a decentralized exchange (DEX), allowing investors to lock funds into a smart contract before a project introduces its native token.

In a recent tweet, the founder of the Solana lending project Solend accused Alameda Research of manipulating the token price in the Solend IDO.

Rooter’s thread unveils that in November 2021, there are two strange addresses affiliated with Alameda Research that do not own any other tokens and seem to have been created just to invest and deploy capital in Solend. The two addresses have forced Solend’s FDV (Fully Diluted Valuation) to $2.5 billion by purchasing a total of $80 million code on the first day, which scared investors away.

That action has led to the increase of the total raised amount to more than $100 million. However, Alameda withdraws $80 million at the final minute of day two of IDO. In the end, Solend was able to gather around $26 million.

The Solend founder also pointed out that Alameda’s actions reflect SBF’s ideology: “Profit absolves all sins. The ends justify the means.” He added that the action of Alameda isn’t helpful and Solend would have ended up with more than $26 million.

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Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.