Filecoin Token Offering Ended With Justin Sun Demanding Investigation

The filecoin token offering created more controversies as members from the crypto community alleged that an unknown account received 1.5 million tokens where only 500,000 were due for unlocking which is why Justin Sun demands the SEC to investigate further. In our latest cryptonews, we read more.

About 800,000 tokens out of the 1.5 million were transferred to Huobi and other exchanges so where are the rest? According to reports, an unidentified Filecoin representative insisted that the decision was made in order to stabilize the price in the listing period. The representative said:

“It is to establish an independent market maker to (help) maintain a stable price in the early stage of the project, because the price may be the most unstable at this time. At the same time, these coins are not a sell-off of FIL by the Filecoin.”

As a part of the plan, the FIL tokens were sent to other exchanges besides Huobi while the team also explained in a blog post that the network “entered a quiet post-launch monitoring period to ensure the network is operating smoothly.” The blog added that now the network is stable and the community members are reporting successful operations. Despite the plan, the Filecoin token saw the price drop a few hours after the listing so it seems that the stabilizing energy failed to stop the token from crashing. The Binance data also shows that the token opened at $200 but then dropped to $42. With this sharp drop in the opening price, the avalanche of complaints and allegations started.

One notable critic of the Filecoin token offering is Justin Sun who insinuated that one Juan Benet and others at the company had exit scammed:

 “Exit scam here? 1.5 million $FIL for 200 USD each worth 300 million USD at the high. Now (the) price is below 60 USD. 70% down. No lock-up. No announcement to the community. How much do you sell? Is this ok?”

Sun faced similar allegations in the past but he has now encouraged investors to make sure that Filecoin and Juan Benet are held responsible for the dump under the protection of the US Securities and Exchange Commission. Other Twitter users seemed to agree with Sun while some were quick to remind him of his own issues. However, Sun doubled down on the claims that FIL developers disregarded the rules by dumping 1.5 million tokens.