- The value of the BUMP token has continued to fall after the project’s disastrous Uniswap listing
- BUMP listed on the decentralized exchange in mid-December and has crashed 88% from private sale price
- Bumper calls itself “God mode for crypto” but there is little faith among investors at the moment
Bumper, the DeFi protocol that offers price protection to traders on decentralized exchanges, has left buyers reeling after crashing 88% from the value of its private sale following its debut on Uniswap. Angry buyers have taken to the project’s Discord group to complain about the instant crash, which the founders put down to a range of issues including scammers trying to disrupt the launch to the impact of working in three different timezones. The token, which was sold for as much as $1.50 at the private sale 12 days ago, has fallen to lows of $0.17 today and the team have yet to respond in person to the community.
“God Mode For Crypto”
Bumper heralded itself as the ultimate tool for traders on DeFi platforms, offering them price protection from the volatility swings for which the crypto world is famous. The protocol included staking and a variety of other features, all of which led to the protocol calling itself “God-mode for crypto.”
However, public sale buyers have been less than praiseworthy over the price action of the BUMP token since listing on Uniswap on December 16, with many reporting immediate issues in claiming their tokens. Those that could claim soon discovered liquidity issues which meant their sells resulted in slippage and a loss of value. The impact of the price action on the Uniswap listing was quickly seen on Twitter:
AVOID THIS PROJECT! They just rekt their investors who have have been waiting for months! They literally launched with almost 0 liquidity after raising millions and the team dumped their holdings. Disgusting.@TokensoftInc @Uniswap @defialliance @CoinF_io @Casper_Pad @shahidkamal
— Richard (@Richard93711739) December 16, 2021
Anger Channelled to Discord
Anger went from the public streets of Twitter to the private sphere of the Bumper Discord channel, where users vented their frustration, both at the negative price action and the lack of contact from the team. Indeed, no team members were available on Discord in the days following the listing debacle until finally a week later a lengthy post was published explaining what had happened.
Bumper stated that scammers tried to intercept their launch at every stage, while the launch of Geabrox protocol at the same time sent ETH fees skyrocketing. The team being spread over three timezones was also given as a reason for the issues. Once the token was finally live in Uniswap, Bumper found that investors sold their holdings immediately which “depleted a significant amount of ETH liquidity”, which had been set at $0.5 million BUMP and wETH, and they were unable to rectify the problem.
Bumper Team “Underestimated” Number of Quick Flippers
In their post-mortem, the Bumper team noted that they “underestimated the number of BUMP holders who were looking to take profit now, as opposed to post protocol launch”, which really should not have been a surprise. They also pointed the finger at some investors who didn’t read the terms and conditions:
Most of the materials released in the lead-up to the Tokensoft launch went unread. It’s clear that some community discontent originates from a degree of mismatched expectation between short-term speculators and our long-term mandate to develop the protocol, all triggered by the price swiftly falling to well below the Tokensoft sale price.
The Bumper team also noted that “we’ve taken too long to respond”, but reinforced that “we haven’t abandoned you. We’re not a scam, and there aren’t any conspiracies to be unearthed.” Beleagured token holders will indeed be hoping that the fortunes of the Bumper protocol and the BUMP token can be revived, especially considering the ETH gas costs associated with claiming, approving, and selling the BUMP tokens.