SundaeSwap and CardStarter are having issues fulfilling their promises to investors. On Monday, these Cardano blockchain projects raised concerns over the ADA community.
CardStarter announced the opening of its DEX in April and asked investors to provide liquidity for the initiative. Investor funds were supposed to be locked up on Uniswap in exchange for CardStarter native tokens (CSWAP).
Merger Between CardStarter And SundaeSwap
CardStarter established a partnership with SundaeSwap, a decentralized third-party exchange, in June. The two projects referred to their collaboration as a “merger.” CardStarter would abandon its initial goal to launch its DEX platform, according to the agreement. Instead, it would add liquidity to the SundaeSwap initiative, which already exists.
However, this has affected the expectation of investors who were expecting the maximum benefits CardStarter had promised. In a YouTube session, a Reddit user stated that the CardStarter had assured CSWAP of potentials in the SundaeSwap DEX.
Investors are disappointed after discovering that the benefits they were promised were simply a conversion from CSWAP to CardStarter’s native CARDS token. CSWAP holders with $15 million worth of liquidity on the platform have expressed their disappointment since the project revealed its new development. After all, they are not getting the reward they deserve.
There are rumors of rug pull with CardStarter suddenly abandoning its project. However, things have gotten more complicated after SundaeSwap and CardStarter blamed the investor on social media.
Charles Hoskinson and ADA fans have shown their disapproval. The Cardano founder referenced SundaeSwap’s statement, which stated that the merger deal was purely an agreement concerning the marketing and their collaboration.
SundaeSwap admitted their team may have misused some terms when communicating to their users. Also, users are reporting failed transactions on the newly launched SundaeSwap DEX platform. SundaeSwap is also affected by poor feedback from users.
Charles Hoskinson Reprimands The Two Newly Launched Projects
According to Hoskinson, the action was unacceptable. Shifting blames instead of taking responsibility will affect the entire ecosystem, which isn’t very pleasant. He believes that no project should go to social media, whether Twitter, Reddit, or YouTube, to blame its investors for its fallout instead of taking responsibility. Hoskinson has ordered the developers behind the projects in question to accept accountability after criticizing them in a YouTube video.
Charles Hoskinson has urged the parties involved to agree and develop a solution. He advised that the parties should stick to the initial plan, and if that proves impossible, he suggested that they go to court.