Early Investors Voice Concerns Over Pike Finance Token Launch

Early investors in Pike Finance expressed dissatisfaction with Monday’s token generation event due to the limited initial liquidity of only $10,000 on the Aerodrome decentralized exchange on Base.

As a result, the token’s price plummeted to around $0.0035, marking a decrease of approximately 90% according to data from DEXScreener.

In March 2024, Pike Finance raised nearly $6.5 million in its token presale, with participants purchasing tokens at prices between $0.0280 and $0.0374. Many investors were frustrated by the small initial liquidity allocation relative to the funds raised.

In response to the price drop, some early investors called for an investigation by blockchain specialist ZachXBT. One investor, under the pseudonym Picolas Cage, lamented on X, “I put $1500 into the @PikeFinance presale. It’s currently worth $61. The pool was seeded with $10k and instadumped in the first 30 mins.”

Following the token generation event, the Pike Finance team announced on X that the token deployment on the Base network had been completed and mentioned they are “implementing a new playbook for the Pike token launch.”

In another post, a screenshot showed Terryljm, one of the founders of Pike Finance, addressing concerns in a Discord channel. He stated the team plans to acquire Pike tokens on the open market and use the remaining collateral to improve liquidity over time.

Nuts Finance, the team behind Pike Finance, has previously developed other crypto projects, including ACoconut, Tapio Finance, and Taiga Protocol. ACoconut experienced similar declines, with its price not recovering and its website now offline.

The troubled token launch represents another challenge for Pike Finance, which has already been affected by two hacks targeting its smart contracts, leading to losses of about $1.9 million, according to security firm Halborn.

The Block has reached out to Pike Finance for comments but has not received a response at the time of publication.