In a dispute that arose on February 22, decentralized exchanges (DEX) Onchain Trade and Camelot ended an initial fair first offer (IFO) agreement with both firms claim that the other party acted in bad faith. IFOs, while still an emerging concept, typically involve promises made by developers that consist of no venture capital participation, no whitelisting, no pre-sale, and the vast majority of revenue going to token holders, in addition to a traditional initial coin offering.
As Onchain said, the developers started negotiating with Camelot for an IFO, for which the company charged a fee of 2% and both sides agreed on the amount. In addition, Camelot demanded that Onchain exclusively sell tokens on its platform, which Onchain also agreed to. However, at this point, Onchain claimed that Camelot became “more demanding and tried to start another round of negotiations; we started to feel uncomfortable working with Camelot and decided to stop working with them altogether.”
In the subsequent Chinese language tweetOnchain, which launched its core developers “originating from China,” he explained that the main cause of the disagreement was the “no-limit” token sale that Camelot allegedly demanded. “There are many opportunities in a bear market; retail investors simply do not have the risk management and valuation skills to assess projects,” Onchain developers wrote.
In response, Camelot said that Onchain’s declaration were “false allegations”. According to Camelot’s version of the story, its IFO sales model was “never brought up as an issue with their team.” [OnChain].”
“This low number [2% fee] which has not changed once from our side, was set deep below the market for such a launch due to the desire to support the ecosystem and facilitate the transition of the protocol from zksync.”
As for exclusivity, Camelot he explained that “do more IDO [IFO] model is not feasible and the same has been clearly communicated and on multiple occasions the OCT team has confirmed understanding.” The firm then accused OnChain’s management of “acting in bad faith or simply being inexperienced” and “in denial” in a series of direct messages that Camelot said led to their cancellation of the agreement.
We will work hard to make every project a success, but some will succeed and some won’t. But in the end it depends on those who do not understand your words and will never have a place at the round table.
To which Onchain he replied: “tricks us into canceling the deal with other partners and start negotiating round and round thinking we can’t live without you, we call it good faith.” Onchain has since decided to move its IFO directly to its website. At the time of publication, Cointelegraph was unable to independently confirm the allegations made by either party.
“The Onchain Trade team is so inexperienced at grifting that they canceled the chance to grift hand-to-hand.” Tricking us into canceling the deal with other partners and going round and round arguing that we can’t live without you is what we call good faith. https://t.co/ibKLctNdht
— OT | OnchainTrade (@OnchainTrade) February 23, 2023