Investors in Pike Finance are voicing their concerns following Monday's token generation event, which was marred by a significant liquidity shortfall. The team only allocated $10,000 in initial liquidity on the Aerodrome decentralized exchange on Base, resulting in the token’s price plummeting to around $0.0035 — a staggering 90% decrease, as reported by DEXScreener.
Pike Finance successfully raised nearly $6.5 million during its March 2024 token presale, with participants purchasing tokens at prices ranging from $0.0280 to $0.0374. Many investors were dismayed by the minimal initial liquidity, questioning how such a small amount could accompany a project that secured substantial funding.
As the token's price continued to decline, early investors rallied, expressing dissatisfaction and urging blockchain investigator ZachXBT to look into the matter. One user, identified as Picolas Cage on X, shared, “I put $1500 into the @PikeFinance pre-sale. It's currently worth $61. The pool was seeded with $10k and instadumped in the first 30 minutes.”
In the aftermath of the token generation event, Pike Finance acknowledged the situation on X, confirming the deployment of the token on the Base network. The team stated they are “implementing a new playbook for the Pike token launch.” Additionally, in a Discord channel for presale participants, founder Terryljm indicated plans to acquire Pike tokens from the open market to enhance liquidity.
Pike Finance is not new to challenges; following its presale, the project endured two significant hacks targeting its smart contracts, leading to a total loss of approximately $1.9 million. Security firm Halborn confirmed that attackers stole $300,000 in one incident and about $1.6 million in another.
The Block has reached out to Pike Finance for comment but has not received a response as of publication.
Disclaimer: The Block is an independent media outlet providing news and data. As of November 2023, Foresight Ventures is a major investor in The Block, which maintains operational independence to deliver objective information about the crypto industry.
