The biggest scam in the cryptocurrency world this year: How much money did Dexter defraud using $GM?
When my best friend comes, I have to call him brother
Falling 88% from the opening, the much-anticipated GM has pulled a big one.
On August 14, gm.ai officially posted on social media that the GM token has been launched. Pre-sale participants have been airdropped xGM, and GM has been pre-deposited in the anchoring plan. If users choose to continue to participate in the Anchor plan, no action is required. If you need to withdraw, you can convert xGM to GM. Airdrop participants can claim it from the mini-program within 24 hours.
From March 18 to August 14, it took such a long time for pre-sale participants to transfer coins. I thought the big deal was coming, but I didn’t expect to lose 100% as soon as it went online. As of writing, the price of GM has fallen to $0.016, which is 88% lower than the launch high of $0.135.
If you invested 10 SOL during the pre-sale period, you can only get 2.5 SOL if you sell it now.
The last call of pre-sale fever
GM’s story began with the influential memecoin BOME 5 months ago. BOME started with the pre-sale mode, and rose more than 100 times in the three days after its launch, with a market value of more than 1.5 billion. The wealth effect of BOME has driven the "pre-sale trend" in the meme market, and many NFT project parties have "re-employed" and started the business of pre-sale payment and meme distribution.
Related reading: BOME increased 50 times in a single day, bringing about the "meme pre-sale fever" in the Solana ecosystem
On the evening of March 18, dexter, the founder of Whales Market, announced the start of the pre-sale of its AI project tokens on Solana. After the tweet was sent, 155,364 SOLs (about 32 million US dollars) were raised in just half an hour, exceeding the 30 million US dollar pre-sale hard cap.
But what is shocking is that Dexter deposited 159,802 SOL pre-sale funds into Binance the day after the pre-sale was completed. At that time, the price of SOL was around $180, and the funds deposited into Binance were approximately $28.76 million.
Dexter said in a post that the transfer to Binance was to exchange for stablecoins to avoid a sharp depreciation of SOL.
After transferring funds to Binance, Dexter announced on March 23 that it would release a white paper within the next week and would launch GM tokens on its pre-market trading platform Whales Market.
On March 25, Dexter responded to community comments and said that GM would be launched before June. On May 15, Dexter posted another tweet suggesting that the token would be launched in June. However, by June 17, Dexter said that it was ready to issue the token, but encountered many obstacles and GM would be delayed.
On July 1, GM was finally launched on Whales Market pre-market trading. On July 29, GM.AI officially announced that the actual launch date is August 14, and announced that the CEX/DEX list will be announced later, but the community no longer cares.
How much money did Dexter make?
Dexter collected a total of 155,000 SOL in the GM pre-sale, but there are currently only $1.6 million in the GM token liquidity pool. For the remaining money, Dexter did not respond to where it went or how it would be disposed of.
From transferring SOL to Binance to using only such a small amount of pre-sale funds to add to the pool, we can't help but wonder, how much money did Dexter make?
GM's pre-sale address transaction records show that it transferred 159,802 SOL to Binance on March 19. According to the price of SOL at that time, which was $182, these pre-sales were worth about $29.08 million.
It is worth noting that dxter had promised to refund the pre-sale portion that exceeded the hard cap, and released the record of the pre-sale address that needed to be refunded. A total of 9,805 SOL needed to be refunded, but dexter did not update the refund dynamics afterwards.
Stablecoin financial management income
The most "bottom-line" situation is that dexter has been participating in Binance's stablecoin financial management after exchanging all pre-sale funds for stablecoins until the GM token was launched yesterday. According to Binance's USDT and USDC financial yields over the past five months, Dexter's guaranteed earnings this time are $543,000 or $750,000.
Mining income
In addition to the stablecoin financial management income, the pre-sale funds transferred by Dexter can also participate in the new coin mining activities on Binance. Since the day when Dexter transferred the pre-sale funds to Binance until the GM token was launched yesterday, Binance has had 5 new coin mining activities. If Dexter used 29.08 million US dollars to participate in these mining activities without landing, the following data can be obtained after calculating his stablecoin mining income:
If Dexter sells the mined tokens immediately after the launch, his total income is about 1.642 million US dollars. If calculated according to the highest price of the token after the launch, the total income is 2.618 million US dollars.
The estimated revenue above is only a rough calculation by BlockBeats. There are many ways to handle nearly $30 million in 5 months, and the actual revenue may be far more than that.
Dexter, as the founder of the previously popular alpha project Whales Market, had a good reputation when launching the pre-sale, but after this incident, even his friends have to call Dexter a brother.
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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