TWO PROJECTS ON CARDANO “BLAME” EACH OTHER FOR THE BENEFIT OF INVESTORS – OUTRAGED ADA COMMUNITY

The ongoing drama between the two projects built on the Cardano blockchain escalated across multiple social media platforms earlier in the week, much to the dismay of the ADA community.

 

 

The problem started in April when the CardStarter project announced it would launch its own DEX exchange. Soon after, the platform's founders encouraged investors to provide project liquidity on Uniswap in exchange for CSWAP tokens.

 

The developers of CardStarter struck a significant partnership with a third-party DEX called SundaeSwap some time later. Under the agreement, CardStarter will no longer develop a DEX and will instead redirect providing liquidity to SundaeSwap.

 

Investors were promised great benefits from the development team during a Youtube live discussion for CSWAP owners in SundaeSwap. However, last week they received information that the benefit is simply converting from CSWAP to CardStarter's native token CARDS, which is trading at $3.14 at press time, at a rate of 400 :first.

 

CSWAP holders who locked up $15 million worth of liquidity on CardStarter seem to feel this is a slap in the face as there is no meaningful reward for their efforts. Even the community thinks that this is really a "blatant" form of rug pull of the project.

 

“To all victims of the CSWAP “deal” please join us. We are preparing a class action lawsuit.”

 

Faced with the situation, both SundaeSwap and CardStarter took to social media to blame each other for the investor failure in the face of opposition from ADA enthusiasts and Cardano founder Charles Hoskinson.

 

According to a statement by SundaeSwap, the June agreement with CardStarter is purely a partnership and marketing agreement. However, the SundaeSwap team admitted to repeatedly using misleading terms when communicating with users. Worse still, the newly launched SundaeSwap DEX has come under heavy user criticism for its failed transactions.

 

“Regarding recent events, we would like to share two important details. Firstly, CardStarter has not contacted us since January 19. Second, we are still available to help CardStarter address investors' concerns and integrate their liquidity with SundaeSwap. ”

 

“Based on SundaeSwap's announcement, we are sharing the following documents that we feel can serve as evidence. We will continue to fight for the CSWAP community.”

 

On the other hand, during a live chat on January 24, Cardano founder Charles Hoskinson condemned the incident. Hoskinson made clear that it is not acceptable for SundaeSwap and CardStarter, to use Twitter, Reddit, Telegram and other social media channels to "uncover" their case.

 

“That is despicable. You are damaging the brand of the ecosystem as a whole. Please, everyone, calm down. If both sides cannot find a common ground in the arbitration process, the courts will always be available.”