Blockchain DEXs Onchain and Camelot part ways over IFO tip
In a dispute that arose on February 22, decentralized exchanges (DEX) Onchain Trade and Camelot concluded an agreement for the former’s first fair offer (IFO), with both firms assert that the other party acted in bad faith. An IFO, while still an emerging concept, typically involves promises made by developers consisting of no venture capitalist involvement, no whitelisting, no pre-sales, and the vast majority of proceeds going to token holders, on top of a traditional initial coin offering.
As told by Onchain, developers began negotiations with Camelot for an IFO, for which the latter charged a fee of 2%, and both parties agreed on the amount. In addition, Camelot demanded that Onchain exclusively sell tokens on its platform, which Onchain also agreed to. At this point, however, Onchain alleged that Camelot became “more demanding and tried to start a new round of bargains; we started to feel uncomfortable working with Camelot and decided to end the deal with them altogether.”
In a follow-up Chinese language chirpingOnchain, which stated its core developers “coming from China,” explained that the root cause of the disagreement was the “no-limit” token sale allegedly demanded by Camelot. “There are many opportunities in the bear market; retail investors simply do not have the risk management and valuation skills to evaluate projects,” Onchain developers wrote.
In response, Camelot said that Onchain’s statements were “false claims”. According to Camelot’s version of the story, its IFO sales model was “never mentioned as an issue by their team [OnChain].”
“This low number [2% fee] which never changed from our end, was placed well below the market for such a launch due to a desire to support the ecosystem and facilitate a protocol transition from zksync.”
Regarding exclusivity, Camelot explained that “to do a multiple IDO [IFO] the model is not feasible and the same was clearly communicated and on several occasions the OCT team confirmed understanding.” The firm then accused OnChain’s management of “acting in bad faith or simply being inexperienced” and “refusal after the fact” in a series instant messaging, which Camelot said caused it to cancel the deal.
We will work hard to make every project a success, but some will and some won’t. But at the end of the day, those who don’t understand your words will never have a seat at the round table.
To which Onchain answered: “tricks us into canceling an agreement with other partners and starts negotiating round after round thinking that we can’t live without you, that’s called good faith.” Onchain has since decided to move its IFO directly onto its website. At the time of publication, Cointelegraph was unable to independently verify the claims presented by either party.
