As you may or may not know, there’s an ongoing drama between SundaeSwap and CardStarter, two projects on the Cardano (ADA) blockchain. However, the situation worsened on Monday to the community’s disappointment, as the two projects took to social media to air out their grievances.
It all began in April 2021 when CardStarter revealed its intention to launch a decentralized exchange (DEX). In light of this announcement, the founders offered incentives to investors who offered the new project liquidity for some native CSWAP coins.
Much later, CardStarter’s developers formed an agreement with SundaeSwap, a third-party DEX also on Cardano, with the deal being marketed as a “merger.” According to the formed agreement, CardStarter would stop developing the DEX it was planning to launch and instead provide SundaeSwap’s DEX liquidity.
According to Reddit user “Environmental-Law768,” an AMA session on YouTube dedicated to CSWAP holders in SundaeSwap promised investors that they would receive “great benefits.” However, it was revealed last week that the benefits aren’t so great after all. It appears that investors would only receive converted coins from CSWAP to CARDS tokens, the native coin of CardStarter.
Naturally, holders who provided $15 million worth of liquidity to the platform felt deceived, as there didn’t seem to be any tangible benefits for their efforts. Shortly after that, there were rumors and allegations that the platform would perform a rug pull.
Unfortunately, both CardStarter and SundaeSwap started blaming each other on social media, leaving the Cardano community and the Cardano founder himself quite disappointed by the debacle.
https://twitter.com/SundaeSwap/status/1485437713729953794?s=20
In light of SundaeSwap's announcement, we share the following documents which we feel speak for themselves.
We will continue to fight for the CSWAP community. pic.twitter.com/6oM2rdcKYF
— CardStarter (@CardStarter) January 24, 2022
SundaeSwap released a statement amidst the drama, later cited by Cardano founder Charles Hoskinson, who said that the deal made in June was a collaboration and marketing agreement. However, the team behind the DEX wasn’t very transparent when communicating with the other users, leading to confusion and misunderstandings. On top of that, the SundaeSwap DEX already suffered multiple reports of failed transactions and errors after its recent launch.
Hoskinson did a YouTube stream on Monday afternoon criticizing the two platforms. He said that it was unacceptable that the two platforms used social media to argue their case.
