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Lena Network denies Rug Pull, giving up token contract ownership does not mean the end of the project

Lena Network denies Rug Pull, giving up token contract ownership does not mean the end of the project

CointimeCointime2024/03/07 09:16
By:Cointime

According to rumors of a Rug Pull yesterday, liquidity protocol Lena Network issued a statement clarifying: "There are multiple reasons why we sent fundraising funds to OKX, including converting IFO's ETH to USDT. This is a necessary step because LENA's operations and automated market maker (AMM) pool operate on the basis of USDT. We chose this method instead of on-chain transfers to avoid high gas fees and transaction slippage, ensuring efficient use and effective financial management of funds. These funds are mainly used for the future development of the project, including development costs, marketing, listing fees, and liquidity. Based on community feedback, we have taken further measures to transfer funds back to cold wallets to protect fund safety. In addition, we would like to clarify that after the end of the private placement round, we transferred 100 ETH to OKX, and did not anticipate such a strong community reaction."

Regarding the controversy over giving up ownership of the token contract, Lena stated: "Based on community feedback, we originally planned to give up ownership of the token contract to prevent any new coin minting behavior and to assure the community of our commitment to decentralization and security. However, we were reminded that ownership of the contract was not completely relinquished, and this was an action taken to further appease our community. Inaccurate information has spread, and we would like to clarify that giving up ownership of our token contract does not mean that our project has ended."

Lena also pointed out that its roadmap is proceeding as planned, with important milestones including the launch of a permissionless NFT auction platform that provides customizable and minute-level auction functions for NFTs. Lena is also advancing the development of a lending protocol, which is visible on the test network.

Lena is aware that its execution errors have caused trouble for the community and is committed to implementing a compensation plan for IFO participants.

According to previous reports by Cointelgraph, the Lena Network Deployer address transferred 753.11 ETH (worth approximately $2.9 million) to an address related to the OKX platform at 10:00 yesterday. According to the Lena Network protocol's previous announcement, the Candy token issuance raised more than 850 ETH (worth $3.2 million).

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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