Alameda Research allegedly modified its IDO, according to the founder of the Solana-based loan and borrowing portal Solend.
Rooter, the Solend creator, said that Alameda Research donated $100 million during its IDO in November 2021, inflating its fully diluted market cap to more than $2.5 billion.
Rooter went on to say that $80 million was pulled at the last minute. One of the accounts he mentions is one associated with Alameda Research. Others have also accused Alameda of deception.
He argues that the company has a vested interest in inflating the value of a Solana-based platform, which explains the big donation.
He concludes, “Alameda’s acts mirror SBF’s mentality,” which he defines as “profit absolves all faults.” “The goal justifies the means.”
He compared the situation to the Mango Markets IDO, which was manipulated, in the tweet thread. In the first phase of the IDO, $500 million was placed, but 80% of the funds were withdrawn at the last minute, resulting in a reduced price for the token.