- Orakuru, the Binance Smartchain project which had its token sale on Thursday, has been roundly criticized for its measly allocation
- Participants had to stake KPAD tokens, but the ratio of ORK tokens to KPAD tokens was magnitudes lower than anticipated
- The KPAD token price also fell just after the sale, adding salt to the wounds
Orakuru, the Binance Smartchain project that claimed to be built on an ethos of fairness, has been heavily criticized after participants received a fraction of what they anticipated during its token sale. Participants used social media platforms to complain about the tiny allocation they received, which were conditional on the staking of the token associated with the launchpad platform, KickPad, the price of which then collapsed once their tokens were released.
Orakuru “Fairness” Not Evident in Token Ratio
Orakuru launched yesterday, becoming the first project to launch on KickPad. The public round was open to KPAD token stakers, with the number of ORK tokens received being directly correlated to the amount of KPAD tokens staked. The ratio was not specified prior to the sale, but as one participant FullyCrypto spoke to put it, Orakuru “built their platform on fairness”, which left buyers confident that they would receive, at the very least, a fair allocation.
The ratio was finally announced right before the pool opened and left would-be buyers stunned – the buyer FullyCrypto spoke to said that he had staked $4,000 worth of KPAD tokens and received a measly $10 allocation. To add insult to injury, the value of the KPAD token collapsed as much as 25% on the day of the sale, meaning many incurred a loss with regard to the KPAD tokens they were forced to stake.
The Backlash Begins
The backlash soon began, with the KPAD Telegram group and Orakuru’s Twitter feed bearing the brunt of the outcry:
And admins on telegram, banning people who state their opinion…This doesnt help that terrible launch.
Kickpad allowed whitelisted non investors get a 150$ allocation, while their investors get the crumbs (3000 KPAD = 30$ worth of $ORK). What a joke…
— Rashidosan (@JohnLoc20298312) April 8, 2021
1000 KPAD STAKE 3800 $
1000 KPAD NOW : 2500
55 ORAKURU : 170 $
DAMAGE : 1130 $
— Alberto Munzi (@victory3490) April 8, 2021
The fallout continued when KickPad announced their next venture, with some recommending an overhaul of their token allocation system:
You need to improve your model. The ORK allocation was ridiculously low. It makes no sense to stake KPAD if the reward is so short. You need to somehow limit the number of joiners.
— Eduardo Silva (@naohavoltaadar) April 8, 2021
The token listed on Pancakeswap shortly after the sale, where it spiked to $18 before falling back down again to just above the $3 mark, which still represents a 17x gain on the IDO price.
Orakuru did not respond to FulyCrypto’s request for a comment.