Manifold has come under heat after a massive dump of $ASH token following a bungled NFT drop now, Manifold is claiming that not all the blame is theirs
A collaboration between digital artist Pak and Manifold to release an NFT project by Pak had gone south after the NFT failed to drop. The NFT project titled “Ash Chapter-II: Metamorphosis” is a collaborative project between Pak and 29 other NFT artists, including Pussy Riot, Paris Hilton, and others.
As an NFT minting platform, Manifold was expected to develop the project’s smart contract and custom website. Considering the status of Pak as a top digital artist, a buzz quickly built around the project. Interested buyers were asked to purchase $ASH tokens to be able to procure NFTs from the collection.
Much to the dismay of many aspiring buyers, the NFT failed to drop as planned, with many users reporting that their transactions failed. Despite this, many users were still charged exorbitant gas fees for the failed transactions, with some claiming to have paid over 0.8ETH.
Within minutes of the NFTs not dropping as planned, insiders who became aware of the issue quickly dumped their $ASH holdings across several exchanges. This massive dump crashed the price of $ASH and left many aspiring buyers of the collection with undervalued cryptocurrencies.
This string of events has left many users with losses running into millions due to the low value of $ASH, exorbitant fees paid for gas, and an inability to procure NFTs from the Ash Chapter-II: Metamorphosis collection.
What led to the $ASH Dump?
Without a doubt, the failed release of NFTs purchased from the Ash Chapter-II: Metamorphosis collection motivated the quick dump of the crypto across several exchanges.
Several speculations have arisen on Twitter, with a user with the account @MuratKun claiming that the use of a “randomizer” by Manifold led to the failed NFT drop and an increase in the gas fees.
Manifold quickly released a statement stating in its defense that failed drop was caused by aggressive bot activities, poor gas estimation, and buyers trying to change gas fees estimation manually. The company followed this with a statement claiming responsibility for the failed drop on its website.
However, this was not enough to quell the heat of the failed drop as users took to Twitter to express their thoughts. Some users criticized Manifold, stating that the reasons it gave could not have affected the drop.
Manifold, in its statement, revealed its plans for buyers who experienced issues due to the failed drop. Their plans include the creation of a v2 contract to facilitate the airdrop of the NFTs and a refund to buyers who paid gas fees despite the failed transactions.
The company also shared a plan to give the top 430 users who paid exorbitant gas fees additional tokens from the newly minted collection.
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