The DeFi Kingdoms are Collapsing as a Scandal Unfolds

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Key Takeaways:

  • $JEWEL has dropped from $3.70 to $1.25 in the last seven days. The dump is the result of a major debate among the Devs and members of the DFK team. 
  • Within the team, there was a concerted effort to conceal a pump-and-dump operation.

In the previous seven days, $JEWEL has fallen from $3.70 to $1.25. It is currently down by around 40%. The dump is the consequence of a major disagreement between the Devs and members of the DFK crew.

Several members of the DFK team have been accused of corruption and wrongdoing, prompting investors to withdraw their funds and sell their assets. The crew made a concerted effort to conceal a pump-and-dump operation. 

During the initial “pre-mine” of Jewel tokens, which is just minting tokens when the tokens are created, two million JEWEL tokens were pre-mined solely to provide liquidity for bootstrapping the ecosystem. These two million coins, according to DFK launch documentation would not be withdrawn or sold.

The DFK team issued a bogus address that was meant to be associated with these coins. In reality, the crew was dumping “millions” of JEWEL using the two million tokens. The team was aware of this, as well as the fake address, but did nothing to stop it.

Two million JEWEL tokens are yet to be decided upon. The hacker, as previously revealed, used “garden rewards” to steal money from the protocol. A slow-rug is classified as an “unlock exploit” because it “influences the speed at which players can open their JEWEL.” Despite the fact that a solution is due today, confidence in the protocol has diminished. 

Prior to this, the JEWEL and Defi Kingdoms had been struggling. In the absence of a huge influx of new players to help balance the game’s economy, the large number of JEWEL prizes issued to players has significantly raised sell pressure. The number of active Defi Kingdoms players has dropped from 30,000 on March 31 to approximately 15,000 in the last month.

The printing of additional tokens resulted in a price decrease. Even if people stopped playing, the creation of new tokens (rewards) would continue since new token creation is the incentive driver for liquidity provision.

@FriskyFoxDK on Twitter, the creator of Defi Kingdoms, has issued a statement, which has been published on the Defi Kingdoms Twitter account. He claims no responsibility for anything other than the apparent falsification of the address in the declaration. He claims the offender was a “friend” and the original investor, who put down $15,000 to purchase the two million tokens. 

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Baisakhi Mishra
Baisakhi Mishra

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