IBXtrade’s $24M Presale Sparks Allegations of Foul Play as ARTIC Token Plummets

IBXtrade's recent presale and ARTIC token launch have come under heavy scrutiny, with mounting allegations of mismanagement and questionable practices. What was initially presented as an innovative and community-driven project has left many participants frustrated, with questions about refunds, the decision to raise the presale cap, and the token's sharp price drop. Meanwhile, Orderly Network, which had incubated IBXtrade, is now facing criticism for its lack of due diligence in supporting the project.

IBXtrade's Plans for ARTIC: Big Promises, Troubling Execution?

In August 2024, IBXtrade introduced its grand vision for ARTIC, a meme token aiming to blend decentralized finance (DeFi) with the viral appeal of memes.

The team hyped up the community with promises of exclusivity, innovation, and a lottery-based allocation system they called "L.Overflow." In theory, this would create excitement and foster community engagement. After all, who doesn't love the idea of being one of the "lucky few" to get in on the ground floor of the next big token?

But things took a turn when the presale, which initially aimed to raise $3.2 million, went beyond expectations, pulling in an astonishing 160,000 SOL ($24 million).

This left presale participants expecting that the extra funds would be refunded, especially since the original cap was clear. So, what did IBXtrade do? They generously handed over the decision to the community via a team-run poll on the website.

The Poll: Community Control or Just a Clever Distraction?

In an eyebrow-raising move, IBXtrade decided to host a poll to determine whether to stick to the original $3.2 million presale cap or raise it.

Critics quickly pointed out that a poll controlled by the very team that benefited from the increase seemed a bit convenient and called this move greedy. It's no shocker that the poll ended with the cap being raised by $15.1 million, resulting in only 65,000 SOL ($9.7 million) being refunded. 

Many presale participants have since reported that despite the team's claims of refunds, they've seen nothing, while some claim they only received partial refunds. Onchain data allegedly shows SOL being sent to multiple addresses, with some speculating the IBXtrade team itself controlled these. The whole situation has been labeled by some users as a "blatant rug," with others calling it outright fraud.

ARTIC Token Launch: A Quick Plunge from $50M to $6M

As if the refund drama wasn't enough, IBXtrade pushed forward with the launch of its ARTIC token. The token debuted at a market cap of $50 million at 6:16 AM UTC. However, presale participants were left watching from the sidelines, as the team didn't make the claim page to collect their tokens available until 7:02 AM UTC—nearly an hour after the launch.

By then, the damage was done. ARTIC's market cap nosedived from $50 million to just $2 million before most presale participants could even claim their tokens. Talk about bad timing. Those unlucky enough to get in after the claim page finally went live were left holding devalued tokens, with many pointing fingers at the team for an apparent pre-launch dump.

Orderly Network's Role: Did They Not See This Coming?

Orderly Network, which incubated and previously retweeted support for IBXtrade, is now facing fierce backlash from the wider community. As accusations of a rug pull mounted, Orderly issued a public statement distancing itself from IBXtrade:

"Orderly Network did not back @IBXtrade or their token. Any claims suggesting otherwise are false. We're actively investigating the situation and will take the necessary steps to support the community. In the meantime, we're cutting off any future involvement with @IBXtrade."

However, this statement did little to appease critics, many of whom argue that Orderly should have done its due diligence before supporting a project that has left participants out in the cold.

Twitter users have been quick to point out that simply cutting ties after the fact doesn't absolve Orderly from its initial involvement. 

The Community Speaks Out

The crypto community hasn't held back in its criticism, with many labeling the whole affair as a classic rug pull. Participants have expressed frustration over the lack of transparency, from the sudden cap increase to the delayed claim page. The timing of ARTIC's token launch, combined with the precipitous drop in value, has only fueled suspicions that this was more than just a case of bad luck.

Orderly's decision to sever ties with IBXtrade hasn't shielded it from blame, as many argue that the network bears some responsibility for not vetting the project more thoroughly before incubating it. As for IBXtrade, they've yet to provide a clear explanation for the refund issues or address the allegations of manipulation surrounding the token launch.

Troubling Questions, Few Answers

IBXtrade's presale and ARTIC token launch have raised significant concerns about transparency and the handling of funds. The decision to increase the presale cap via a team-controlled poll, combined with reports of missing refunds and the sudden token value collapse, has left many participants questioning the integrity of the project.

While Orderly Network has distanced itself from IBXtrade and launched an investigation, the damage to both IBXtrade's and Orderly's reputations has already been done. For now, the community awaits further action and answers. Still, the incident serves as a stark reminder that even seemingly promising projects can take a sharp turn for the worse, leaving participants to pick up the pieces.