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Investors were showered with cold water in the middle of the “war of words” between two projects on Cardano

Two projects based on the Cardano blockchain that have been the subject of much talk on social media platforms recently had a “war of words” on Monday. It’s worth noting that this incident left the ADA community quite frustrated.

The story begins in April when the CardStarter Accelerator announced that it would launch its own decentralized exchange (DEX). Soon after, the founders encouraged investors to provide liquidity to the project on Uniswap in exchange for the native token CSWAP. Some time later, the platform’s developers reached an agreement with third party DEX SundaeSwap and marketed the deal as a “merger” last June. As part of the agreement, CardStarter will no longer develop the promised DEX and will instead provide liquidity for the currently active SundaeSwap DEX.

As Reddit user Environmental-Law768 said, to speak, investors were further promised “great benefits” at a YouTube Q&A session for CSWAP holders on the SundaeSwap DEX. However, as revealed last week, these benefits will simply be converted from CSWAP to CardStarter’s native token CARDS (priced at $3.09 at press time) at a 400:1 ratio. This makes holders who have (at the time of disclosure) $15 million in liquidity locked on the platform feel like they just got a slap in the face when there is no reward for their efforts. Soon after, the charge of carpet pulling was raised.

Both SundaeSwap and CardStarter blamed each other on social media for the fallout investors suffered.

In light of SundaeSwap’s announcement, we share the following documents which we believe speak for themselves.

We will continue to fight for the CSWAP community.

— CardStarter (@CardStarter) January 24, 2022

“Per the SundaeSwap announcement, we share the following documents which we believe are obvious and need no further explanation. We will keep fighting for the CSWAP community.”

The ADA community and Cardano founder Charles Hoskinson also stands against this background show upset about it.

“To all victims of the scam caused by Team Cards regarding the CSWAP “deal”, please join the TG team, we are preparing a class action lawsuit.”

According to a SundaeSwap statement quoted by Hoskinson, the June deal was purely a marketing and partnership agreement. However, the SundaeSwap team admits to using misleading terms when communicating with users. Worse, the newly launched SundaeSwap DEX has suffered from numerous user reports of failed transactions.

During a YouTube live stream Monday afternoon, Cardano founder Hoskinson judged heated arguments between the parties. Hoskinson made it clear that it is unacceptable for SundaeSwap and CardStarter to use Twitter, Reddit, Telegram and other social media channels to argue over their dispute.

“This is despicable. They evade responsibility and damage the brand of the ecosystem as a whole. Please everyone, calm down. Both sides sit down, come to an agreement with the referee, talk to each other and find a solution. And if you can’t somehow resolve it during the arbitration, the court is always available.”

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Minh Anh

According to Cointelegraph

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