IBX Faces Rug Pull Accusations After $24M Presale Raises Investor Concerns

Highlights:

• IBX faces rug pull accusations after raising $24M but not refunding excess funds, increasing presale cap without transparency.
• The ARTIC token crashed by 97% before investors could trade, as the team allegedly sold their holdings.
• Orderly Network distanced itself from IBX, denying support amid community demands for refunds and investigations.

IBX, a newly launched cryptocurrency project, faces rug pull accusations after raising $24 million in a presale. Investors are demanding answers. The presale began on October 15, aiming to raise $3.2 million in Solana (SOL) tokens. Due to unexpected high demand, IBX accumulated 160,000 SOL, vastly exceeding its original goal.

IBX faces rug pull accusations after raising $24M in presale

On-chain analyst Anon Vee reported via X that IBX, a decentralised crypto perpetual futures exchange incubated by Orderly Network, faces accusations of a rug pull involving its meme coin ARTIC. IBX raised 160,000 SOL…

— CoinNess Global (@CoinnessGL) October 18, 2024

Initially, IBX promised to refund any excess funds and distribute tokens only to select wallets. However, the team did not return the additional funds. Instead, they increased the presale cap, citing a community vote as justification. The voting site later became inaccessible. No on-chain records of the vote exist, leading to skepticism about the legitimacy of the decision.

Investors Report Missing Refunds

IBX claimed to have refunded 65,000 SOL ($9.7 million) back to participants without token allocations. Still, it was shocking to learn that many investors said that they never got their refunds back. Further, DeFi analyst Anon Vee on X suggested the funds were transferred to new addresses, possibly controlled by the IBX team. Original investors did not receive the refunds.

Did a new rug just happen?@IBXtrade is incubated by @OrderlyNetwork

IBX launched a presale 3 days back with the aim to raise $3.2m and refund non-selected participants

The presale ended up raising over 160k SOL ($24m)

Participants expected $21.8m to be refunded but guess… pic.twitter.com/3rc6E5GQ6N

— Anon Vee (@AnonVee_) October 18, 2024

The ARTIC token linked to IBX launched with a market capitalization of $50 million. Before most investors could claim their tokens, the price plummeted by 97%. From a peak of $0.06, it depreciated to $0.0016. The liquidity pool holds less than $500,000, which is not enough for a project at this level. 

According to the investors, the IBX team started dumping the tokens before they were available for the community, which exacerbated the price crash. Moreover, the page for claiming ARTIC tokens went live only after the significant price drop. This delay prevented investors from selling their tokens at higher prices. Apart from the market crash, some ARTIC tokens were listed in recognized exchange platforms like MEXC and LBank. However, these listings did not help much to avoid the rapid decline of the token, and ARTIC investors were stuck as ARTIC value crashed.

Community Demands Accountability

IBX has attempted to address the accusations. They have stated that they are aware of the community’s dissatisfaction and are working to resolve the issues. However, their responses have been vague. The presence of bots in official communication channels, claiming successful refunds or token receipts, has further eroded trust.

We are aware of the current community dissatisfaction and are doing our best to resolve it. We are doing everything we can to fix the situation and will share next steps ASAP

Orderly has nothing to do with the meme launch, was 100% executed by IBX and Artic team

— IBX (@IBXtrade) October 18, 2024

The situation has raised more questions surrounding the security and integrity of decentralized finance projects. IBX’s alleged rug pull raises awareness of the risks associated with participating in presales and underscores the importance of transparency and accountability in crypto.

Orderly Network Distances Itself

Orderly Network, initially associated with IBX, has publicly distanced itself from the project. In a statement, the Orderly Network was quick to distance itself from IBX and further stated that it did not incubate the ARTIC token. They declared the concern requiring an investigation of the allegations and expressed intent to support the affected community. This action brought focused attention to IBX and doubt on the entirety of the project.

Orderly Network did not back @IBXtrade or their token. Any claims suggesting otherwise are false.

We're actively investigating the situation and will take the necessary steps to support the community.

In the meantime, we're cutting off any future involvement with @IBXtrade .

— Orderly Network (@OrderlyNetwork) October 18, 2024

Investors demand law enforcement agencies to investigate IBX’s actions. The community wishes to see the remaining funds returned to the actual wallets of those who participated only in the presale. Others have contacted the on-chain investigators who can track the funds. They intend to point it to the IBX team accountable.