Arbitrum-based FactorDAO launches betting service amid code controversy
Arbitrum-based asset management protocol FactorDAO released its long-awaited staking service on Monday, days after ending a token sale on decentralized exchange Camelot and facing controversy in the crypto community.
Last week, someone on Crypto Twitter found that some of Factor’s code was copied from other crypto projects.
“This project called FactorDAO $FCTR launching on CamelotDEX is a blatant copy of SpoolFi,” tweeted popular Crypto Twitter trader Romano. “Imitation is flattery.”
A Factor developer acknowledged the disputed code in tweets on Monday, saying “5 bullet points on one page” led to sweeping claims that the entire “documents were copied.”
Factor has since focused on releasing its betting and vault services for users. However, distrust remains among Crypto Twitter, which showing more tweets.
Factor did not immediately respond to requests for comment.
Staking refers to unlocking one’s tokens to participate and help maintain the security of the network’s blockchain, in turn for rewards.
Factor will take a percentage of deposits, withdrawals, transactions, vault management and performance fees and redistribute 50% to FCTR players and 50% to its Decentralized Autonomous Organization (DAO).
FCTR players will therefore earn a return on putting their tokens as liquidity to the platform, while the platform will use the increased liquidity to offer even more products to potential users.
Users who lock tokens for up to four years will receive the highest return, the highest percentage of management rights and a higher amount of earned factor (veFCTR) – a token issued to users who lock their FCTR on the staking platform.
Factor ended up raising $7.5 million from 4,000 unique wallets. However, each participant received FCTR tokens at the same final price of 75 cents each due to the issuing mechanism at Camelot.
Although the raise initially set a minimum price of 10 cents for each FCTR token, the final money raised was divided equally by the total number of tokens issued to determine the starting price of FCTR in the open market.
But those tokens were almost immediately dumped on the open market on Sunday, falling to as low as 44 cents, DEXTools data shows.
The buying pressure after the initial dump saw the tokens regain their pre-sale price of 75 cents on Monday morning, but have since seen a gradual sell-off to just over 58 cents by the time of writing on Tuesday.
