- Insolar has been delisted from Binance nine months after being labelled a scam by the community
- The company changed the terms of the mainnet swap, introducing a five-year vesting period
- Campaigners have spent nine months trying to raise awareness of the issues
Insolar, a project long targeted by the scam-hunting Crypto Vigilante group, has been delisted by Binance. The project dramatically changed their tokenomics surrounding their mainnet transition earlier this year, resulting in potential lengthy lockups for holders and a ballooning token supply. Scam hunters from the Crypto Vigilante Telegram group were instrumental in pressing the issues behind the Insolar project, which following the delisting now faces an uncertain future.
Insolar Changes Token Swap Terms
Doubts about the validity of the Insolar project began to surface in January this year when the details of the INS to XNS swap were announced. Investors were told that they would be forced to give up their INS tokens for the forthcoming XNS tokens, which would be released back to them over five years at a rate of 0.013% per day.
This outraged loyal supporters of the project and led to mutiny within the community, who spotted that the total supply of tokens would also rise from the millions to the billions, resulting in massive dilution of the token’s value. One investor who penned an open letter to Insolar concluded that this expansion and dilution of the supply “vastly and unfairly” prejudiced token holders and ICO participants, while also accusing Insolar of “self-dealing” hundreds of millions of new tokens.
Crypto Vigilante Takes up the Cause
Relations between Insolar and its community have only gone from bad to worse as the saga has dragged on throughout 2020, with the Crypto Vigilante taking up the mantle, suggesting that token holders contact regulators about the drastically changed terms. The group engaged in dialogue with Insolar COO Dmitry Zhulin over the concerns but received scant reassurance that they were looking out for the community:
the misleading and fraudulent treatment of holders and market participants was not addressed; and, the predatory swap Terms and Conditions were addressed with the same “waive your rights or sell” mentality.
After months of efforts to bring their complaints to the notice of higher authorities, Insolar campaigners finally received recognition for their efforts last week when Binance announced that it was delisting the INS token due to the precise reasons the campaigners had first raised nine months ago.
Community Response Paints Picture
Naturally Insolar wasn’t thrilled with the exchange’s actions, but the responses to Insolar’s tweet on the subject clearly show how the community still felt about how they had been treated:
I’ve been holding $INS for a long time, I don’t like it has been delisted from @binance but it does not seem fair to me that when we swap to $XNS we must wait for 3 years to fully have our coins back.
You should work on that @insolario @andreyzhulin @pfedchen
— Sk8Karloz (@sk8karloz) September 4, 2020
The founder of the Crypto Vigilante group who campaigned so hard against the project told FullyCrypto that the delisting was more than deserved:
I feel content about it being delisted because we did a lot of research to expose it. Eventually the truth catches on even to the likes of Binance. (Insolar is guilty of) lying to investors and suddenly changing everything.
Where Insolar goes next is unclear, although with a Binance delisting under their belts and seemingly no desire to change their tokenomics they may find other takers hard to come by.