Unsuccessful Token Release

Dear Gelato Team,

I am writing this on behalf of your community, shortly after your token release. It is clear now that this release has been unsuccessful. Unsuccessful by what metrics? You have said in the past that the goal of this release was to both reward and allow community participation on the Gelato Network. The community who have supported this protocol has been priced out by a mismanaged sale, with a majority of tokens going to a small number of accounts.

The combination of a FCFS launch, the multiple delays, and not allocating enough token for whitelisted participants was the downfall to this launch. FCFS, website failure, not sticking to the actual token release time - how were your loyal community members ever going to be able to participate?

A key finding is that one account was able to automate and purchase 70% of tokens. The irony of this, is that your community are the ones who believe in the power of automation on the blockchain, but were unable to participate and become invested in your protocol due to it.

There are 50% of tokens, locked up for the community. There is a simple fix to this failed launch - to reallocate a portion of these tokens for whitelisted participants to purchase their allocated amount. As you are aware, a loyal community in the decentralised space is the backbone to any strong protocol. Competition is fierce, with other protocols easily replicating and offering similar services.

Although we are disappointed, you are still able to fix this. Please consider.

Yours sincerely,

Jason
Gelato Community Member

16 Likes

I agree,

Long time supporters of the project have not only missed out on being able to participate but also have a sour taste from how poorly the sale went.

13 Likes

I couldn’t agree more. I am a german living in austria and tbh having this kind of launch as a blockchain company in Zug is a disappointment and impacts the reputation of the whole valley there. GELATO is literally a Bot As A Service project, your community had trust and faith that there would be measures to not just launch as FCFS Bot Heaven.

You raised money, so from that perspective it might have been successful, but you failed your community. So if you care about that part, you should consider giving “back” in a fair and proper way.

9 Likes

I agree with this. You allow whilte listers to be able to actually purchase an allocation at the original list price otherwise you run the risk of losing your community

6 Likes

I share the filling, I have been following the project development with enthusiasm for over a year now, I was excited the whole week to participate in the sale, had my ETH lined up ready to fire, which I did in the second it opened, and still was not able to get my allocation, that was disappointing :frowning:
Big shoutout to the team for running an amazing project otherwise!

4 Likes

100 percent agree. there is clear evidence of multiple accounts that received more than the allocation they should have. not only that but there was a bug in the UI that allowed for some users to start preparing early for the sale. check this out: Как взламывали сейл Пломбира. Каждый мог — Teletype it’s in Russian, but can be translated in Chrome

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not to mention this address which somehow has 5 TIMES the actual alloted amount of GEL. nearly 300,000 GEL (it used to be more but they sold or transferred some). Address 0x847c8c905cce6129952c30b3f3d74792b48aae16 | Etherscan

CLEAR evidence that this sale was a sham.

5 Likes

Thanks for creating this discussion thread. All points agreed. However, I highly doubt they would make use of the community fund. It seems like they are not going to give us a post mortem of the entire saga and they wanted to move on from this “sale”. Many of us were in Gelato way before they announced their tokens and being treated this way is insulting. Albeit not quite plausible imo and barring from any possible deliberate manipulation from the team, I do sincerely hope they do something to allow us to participate in a real sale. I’m fine if I get priced out by real participants but not when we are essentially competing against bots and we know we are no match to them.

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one of the worst sales i had seen. if a bot user can pass kyc with multiple wallets it shows how far the gelato team is for achieving their automation goal.

P.S muting the chat and pinning what a wonderful launch we had doesnt make the facts disappear!!!

4 Likes

On this point, I agree and @hilmarx @Dan @gitpusha can provide an explanation on this? I believe, we have seen in the past the pump and dump with project tokens launching and I guess we had different this time since Gelato was all about community and its members who really want this project and its niche (automation) to pierce in crypto industry? This could have been prevented.

Yes website delayed but also the functionality had error. In the sense ‘max’ tab showed error for no reason inspite of sufficient funds. ? Why this glitch? Impacted during token sale event.

We in general are absolutely proponent of this project and believe it will be huge in this space. We without doubt support this and will be supporters for sure in future.

However, we would at the same time at least owe a fair explanation of the above discussed points.
Please note this is no way fud but seeking fair answers in terms of what could have been done for better token sale? Do you think there was better way of token launch?

A proud community member of Gelato.

Regards
Pats

2 Likes

Thanks a lot for your replies gel family. Let’s hope and work together that we get an answer, if there’s a way to ease the tensions a bit.

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Totally agree, and the fact that up until now, you still haven’t sent an official communication to acknowledge what happened in a transparent and open way, honestly is super disappointing.
Plus, Discord, and the Telegram community channel are muted. This is the perfect way to lose the community… Really surprised that you don’t seem to realize this. Very, very unprofessional and very disappointing tbh.

3 Likes

I agree with everything @Virtualjason proposes but one thing: If another sale comes, it shouldn’t take tokens from community development fund but rather from team allocation. This is solely their responsability:
-Tons of suggestions where made to avoid FCFS before sale and none were taken into account
-The 70% that were bought by the same bot proove KYC was managed poorly to say the least
-The team lied saying sale would only be accesible through the website and not through the smart contract directly
-The fact that some bought more than the max allowed allocation prooves the code was just bad
-Same for whales accessing both pools
-Sorbet Finance website frontend bugs such as the javascript error that resulted in postponing sale and the “max” bug that resulted in tons of users being left out
I believe a post mortem announcing this is the only way to restore your community’s faith. Other than malicious actors, Gelato digital GmbH is the only one benefited by yesterdays sale. You still got the ETH and kept your 25% of total GEL (which is actually 50% right now). Penalize yourselves for the mistakes you have made and you might rise from the ashes, otherwise the proyect is dead and whatever competitor shows up will take all your community, users, partners and market cap.

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@FranLegon Even setting the buy limit bellow 1.17 ETH resulted in Error saying that gas could not be estimated.

Overall the biggest shame is that there are HONESTLY a lot of people who believe in Gelato and understand its significance for the market. But almost every Gelato community member is basically put into a situation where they are rewarding Cheaters by buying the tokens from them.
This, I believe is the worst part of the sale, that if I want to own GEL token at this moment I am paying my Ethereum to the guys who Cheated, Abused the system and have no regard for Gelato Project, Team or Development. And in my case it is extremely hard to turn my self into and pay those Bot Scums in order to get GEL and participate in Gelato governance.

Basically those Bots/Cheaters won, and everyone else lost.

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In Gelatos Team place

If another sale would be conducted, as previous mentions it should come from the Team fund. Firstly I would even recommend in order to keep the release schedule aligned, make the other sale have the exact same lock period as Team lockup (1 year) at that point you would truly see who are willing to be a real community member. Furthermore all the clearly visible bots should be blackmailed. And either use the lottery, fair launch using copper or make the sale somehow protected from back access.

The inflation would be the same, the community would be pleased and everything would be at least partly fixed.

1 Like

I am sad to have experienced this token sale first hand as part of the Dolphin pool, and its multiple failures. The actual sale had multiple errors on the interface front, and I think given the result, the technique chosen for allocation and sale have to be put in doubt. Effectively this seems to have blocked out almost all “small normal users” and community members, leaving the botter and a lucky few, instead of the many.

I hope the Gelato community is able to recover, because I know from experience what a crushing feeling it is experiencing the events of this sale, and that the community can unite around some remedial action.

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Unfortunately and expectedly tbh, they won’t be doing anything with the sale anymore from this point forward. I have been in many FCFS and each project has their own problem, but no project would spend more time/money to compensate anyone from a flawed public sale. They simply move forward with no remorse, just apologies lol. So, it’s pretty much impossible for us to be asking the team to tap into the community fund, let alone taking away their 15% cut. They were also fully committed to FCFS sale despite a large majority of community members being against it the whole time, so that adds to the suspicion that this was an insiders job.

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Although it’s a regrettable situation, I disagree to the proposal.

By conducting additional sales the team is basically discounting the project which we all agree it has real value and potential. Wider G-UNI implementation and more use-cases of automation Gelato promised to offer is comparatively more important than simply providing remedy to the public who might be just a short-term profit seekers and FUDders.

GEL already has multple LP pools and even listed on an exchange called MEXC. So if it’s really just about acquiring a token, then free market is where it should be gotten. If what people want is just ‘GEL on discount’, then these so called ‘early members’ just want GEL at lower price.

Currently on Uniswap, the Volume/TVL ratio is a bit less than 20. Which means lots of trading is taking place on GEL/ETH pool and this indicates not the most ideal, but reasonable depth is provided. So there is an option for ‘true GEL and Gelato believers’ to still profit by joining the LP pool if you fall into both of these categories.

G-UNI implementation on GEL/ETH pool is what is currently needed as a compensation to those who believed in the project yet unfortunately missed the sales due to unforeseen situations and acquired GEL in the market.

In line with this, I urge the whales to actively participate in the forum and other onchain activities relative to Gelato to show how much value and action you could bring on the table and prove that the handpick done by the team wasn’t done in vain.

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Great points and I have added a reply to the G-UNI LMing proposal in reaction to this: GEL/ETH G-UNI Liquidity Mining Proposal - #18 by freshaspect

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Not even a reply by the team ? Where is the community mods now when there’s no question about how to participate money but an actual question regarding community ? Hrmm. Wow. Guess the competition (from chain link for example) is happy about that.