Lena Network responds to Rug pull: Transferring ETH to OKX due to liquidity! CANDY investors want refunds

Liquidity protocol Lena Network went through fundraising and released the token CANDY trading pool yesterday (6th). However, around 10:30 on the 6th, more than 753 CANDY coins were ETH was transferred to the OKX exchange (recorded on the chain), causing the community and investors to worry about a Rug Pull. More than 2.9 million US dollars in funds were involved. Subsequently, the CANDY token fell sharply, from the highest price of about 6 US dollars to 0.38 US dollars. According to Dexscreener is currently trading at $0.31.

#The Lena Network team opened an AMA at 00:30 on the 7th to explain, trying to calm the community’s anger

The following is the main response content:

Lena will transfer funding to OKX for the following reasons:

• Convert ETH in IDO to USDT because the AMM pool is based on USDT. LENA is not converted on the chain because of Gas Fee and Swap slippage prices.

• Fund management. Most of the funds will be used for the future development of Lena, including development costs, marketing, listing expenses and liquidity.

• In order to ensure that liquidity can be provided in the AMM market immediately after the tokens are claimed, the Lena team established a pool 35 minutes in advance. To this end, they set the time to prepare 35 minutes in advance.

• There was a technical error when the tokens were available for redemption. We fixed the front end in time, which took about 10 minutes. When users can claim the tokens, the price will be around $2.80. There were no front-running users, but the consumption of the fund pool exceeded our expectations.

• We have received multiple community complaints about OKX transfers and decided to further secure the funds and return the funds to the cold wallet.

Lena stated that it has transferred 100 ETH of capital raised after the private placement round to OKX. Lena didn't expect the community's reaction to ending the open round to be so strong.

In terms of liquidity pool and initial deployment scale, the Lena team said that due to sniping by most users, the price once soared from 2 US dollars to 6 US dollars and then plummeted. The initial deployment scale is 60,000 plus 20,000 USDT, and later Because the price stabilized, another 35,000 USDT was invested. The LP Token deployed in the early stage has been locked into uncx.network, and the additional LP Token of 150,000 plus US$100,000 deployed later has been locked into team.finance.

Lena emphasized that the liquidity pool was sniped after it was listed. The team tried to continue to maintain the price, but was not optimistic. At this time, there were constant complaints from the community. The team expressed respect for the community's suggestions and invested more than 300,000 US dollars. liquidity, and then lock the liquidity immediately.

The current AMA is still going on. Most of the investment users who listened are still angry and still leave messages asking the team for refunds.

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