Ethereum fanatics and hosts of the Bankless podcast, David Hoffman and Ryan Sean Adams, confronted heavy criticism over the weekend following accusations of dumping AICC, the token of Solana-based AI Funding and Growth DAO, Aiccelerate.

Each Hoffman and Adams, in addition to the model’s VC arm, had obtained unlocked token allocations in alternate for small seed investments.

At its peak, AICC was buying and selling at round $0.30, making the 9 million tokens allotted to every price over $2.5 million, in principle.

The controversial gross sales got here from Bankless Ventures’ 3.64 million allocation on the day of the token launch. A number of clips of 45,000 AICC had been dumped for roughly $10,000 apiece, at a mean price of round $0.22.

AICC is at the moment buying and selling at $0.07, in response to information from CoinMarketCap.

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Nonetheless, Hoffman and Adams have hit again at what they name “a warped version of reality.” They defended themselves by stating that the tokens offered had been a part of their related Bankless Ventures allocation, slightly than private investments.

Additionally they pointed to their fellow Bankless accomplice as the person who had made the “impulsive mistake,” stating that the proceeds had been then spent on shopping for again the token at far decrease costs.

A dashboard of every investor’s preliminary allocation and present balances exhibits the Bankless Ventures deal with at the moment holding barely extra tokens than initially assigned. It additionally exhibits Adams’ deal with having held his allocation, and Hoffman’s account having moved the tokens to a different deal with, the place they continue to be.

Reactions to a messy launch

The unique thread to name out Bankless’ actions raises additional issues, together with inviting Aiccelerate’s co-founder Ejaaz Ahamadeen onto their (often completely Ethereum-focused) podcast, and the dearth of a lockup interval for investor tokens.

Ahamadeen posted some reflections on the “incredibly tough day” to X the place he states that the group “got swept up in excitement and got ahead of ourselves without properly thinking through the structure & allocation process.”

As a way to transfer ahead he plans to donate a part of his personal allocation “to the community” and vest the remaining, in addition to securing additional group distribution through “airdrops and donations to DAOs.”

Nonetheless, loads of legitimate questions nonetheless stay, such because the actions of 1 investor, InsiderJudas.