The mStable project found itself in hot water yesterday, resulting in the team’s apology for what the community saw as an unannounced token drop, coin dump, and lack of transparency. And there is something to be learned about communication from their experience.
A lot can happen in a mere day, as shown by the recent controversy involving mStable, a project that “unites stablecoins, lending and swapping into one standard,” and their protocol token Meta (MTA). Per CoinGecko, on July 21, MTA price dropped by 40%, to USD 2.35, recovering to around USD 3 since.
MTA price chart:
Yesterday, the accusations flew within the Cryptoverse that the “unbeknownst to its community,” as DAO Maker tweeted, the mStable team airdropped over MTA 3 million to the seed investors when the token was trading at USD 4, after selling 6.5 million tokens in a seed round at USD 0.15.
“That’s an “airdrop” to seed investors, valued at USD 13.3M, giving seed investors a paper return of over 13x, on just a portion of purchase,” said DAO Maker, adding that the MTA volume then went up, while the price crashed. “This points to a potential dump by the seed investors.”
Many commented on the event similarly, with some suggesting that dumping the tokens then apologizing was the plan all along, while others pushed back, suggesting other possibilities.
I mean I’m not going to hypothesise about what could of happened as I believe that would be fruitless.
All the team can do is do better in the future which I’m fully confident they will endeavour to do. Mistakes happen.
— Anthony Sassano | sassal.eth (@sassal0x) July 22, 2020
N.B. Anthony Sassano is an advisor at mStable.