Dear community and Fragmint supporters,
As we have pledged full transparency, we are disclosing full records of everything related to the mishap of Fragmint’s native token initial listing. We regret to announce that the crisis and crash of $FRAG’s DEX were indeed caused by a BlokPAD (Bloktopia Launchpad) scam, dumping their community’s full allocation into our token’s liquidity, minutes after it was added on PancakeSwap by our founding team. We are still shocked by what has occurred but since then managed to contain the situation and re-launch a new version of the contract where this event will not affect any future impressions and trading on Fragmint’s native token. Still, we strongly believe that every one of you is owed a detailed account of the unfortunate occurrence. Acts like these are incredibly detrimental to the trust in the space as a whole. This affects everyone.
The chain of events
Our plan for Fragmint’s native token was to execute a long-awaited DEX with the ticker “FRAG” on October 13th by listing it on PancakeSwap. We had executed multiple Public Sale offerings in the weeks leading up to the TGE, partnering with major launchpads in the space. The result was a raise with a total amount of close to $900K, pending on the contracted token launch price of $0.04.
The announced listing time was 15:00 UTC with an official vesting schedule of all partners to begin exactly 30 minutes past. On the day of the event, as the TGE time approached, our market maker Gotbit began setting up procedures in order to ensure the contracted listing price of the FRAG token. Almost as soon as BUSD/FRAG liquidity was added, right before the announced listing time, а single wallet sold tokens totaling 2.7 Million.
This was done in a series of three consecutive transactions, outlined below:
*Timezone displayed UTC+3
The scam dump cut directly into the liquidity which our founding team had provided to ensure healthy trading for the token, causing a price drop of less than half from the $0.04 listing which was promised at the time of listing. Failure to launch at the contracted price was a breach for all the Public Sale participants, triggering refund protocols for all of the launchpads.
In the midst of the scramble by the team to try to figure out what happened with assistance from Gotbit, a decision was made to instantly lock the remaining liquidity from withdrawal for 6 months, in order to show that our team did not cause this unfortunate situation and that we are to stay. Crisis response statements were immediately posed in our official communities detailing the situation, outlining the wallet that caused this, and ensuring that a proper investigation was being conducted to decipher the identity of the bad actor that performed the dump.
After a dive into available blockchain data cross-referenced with all partner and investor wallets tied to the project, our investigation revealed that the wallet from which all three sale transactions originated was none other than the official wallet of BlokPAD, a major launchpad in the space, sub-brand of Bloktopia.
As you can see, the total number of sold tokens right into liquidity closely matched the number of $FRAGs previously announces as sold (but refunded shortly after), in partnership with the LP.
We had initially planned a $FRAG DEX listing at the end of June with a public sale round in the weeks leading up to it, however, ended up postponing it due to unfavorable market conditions. BlokPad was to be the first in a series of announced public sales, at the beginning of June. A sale was executed but shortly after, in light of the postponed TGE, BlokPad announced a full refund to their community. The plan was to relaunch a similar Public Sale schedule in the weeks leading up to the newly chosen listing date for $FRAG.
A decision was made to set the new listing date as Oct 13, and negotiations were resumed to create community marketing activities in order to ensure a proper Public Sale execution. A tentative date of Oct 4th was set to relaunch the Publis Sale offering to the BlokPad community.
After a week of discussion, a decision was made by the launchpad to withdraw from the Public Sale due to not receiving their negotiated commission upfront.
However, as it turns out this was done without refunding their FRAG token allocation to Fragmint, only to be dumped by the BlokPAD (Bloktopia Launchpad) scam in the first transactions as soon as liquidity from the founding team was added to the listing.
It was truly disturbing for us to see this level of malfeasance conducted by a big launchpad in the crypto space with an allocation meant for their community. This act has not only destroyed our initial $FRAG listing but affected community trust within all our other partnered launchpads. It has forced us to delay the original vesting schedule by 3 months understandably causing pressure on our private investors, who have been supportive through this unfortunate situation.
As soon as we discovered the bad actor in the face of BlokPAD, we requested a meeting as we had pledged to you, our community, that we would hold the bad actor accountable for this mishap. In one of the meetings which followed, Bloktopia CEO Ross Tavakoli, admitted that the dump was indeed done by someone from their team supposably in error but refused to disclose their identity. In addition, we are providing a full record of relevant communication and BlokPAD wallet addresses so you can form your own conclusion. It is extremely hard to believe this is the case keeping in mind that all three transactions were executed almost immediately after liquidity was added to the token. What this demonstrates is that the $FRAG listing was watched very closely by their team. To be fair, since our confrontation, the BUSD funds gained by dumping the $FRAG were returned to our wallet but unfortunately, severe damage was already caused.
It was also troubling to see that in the week following the BlocPAD (Bloctopia Launchpad) scam, even after refund protocols were triggered, a couple of other launchpads sold part of their allocations instead of refunding us as they did their communities. We will be providing full records of those in a follow-up article as we fully complete our investigation. We believe it’s crucial to the crypto space that any bad actors are uncovered so that projects can avoid falling victim to a similar fate.
It is well worth noting in the midst of all this chaos, we are indeed fortunate to have partners such as Ignition/PAID Network, Binstarter, GamesPad, BullPerks, PEAKDEFI, Poolz FInance, and Zebacopad who were professional and quick to respond with refunds то their community and to us, as well as support in acknowledgment of the issue, its resolution and the rush re-launch of $FRAG. This should be the standard in the crypto space so that it remains fertile for new projects to launch and succeed.
Despite the crisis caused by this BlokPAD (Bloktopia Launchpad) scam, we proudly pledge that we are here to stay. The new $FRAG token contract is in healthy trading, albeit it forced to have been initially listed at half the originally planned price. Staking is live and going strong with a high, dynamic APY.
This article is only the begging of our effort to hold BlokPAD/Bloktopia accountable and do all we can to help prevent them from causing this type of damage ever again.
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