Was Refinable’s $FINE launch a SCAM or just bot manipulation?

Yesterday’s article about Refinable’s coin offering mentioned how high the price reach at $9 after its launch price of $0.033, just to drop all the way down a few minutes after. Many investors that purchased $FINE have been blaming that Refinable is a scam and thousands of users have lost their trust in the project and new platform.

Let’s have a look into a series of things that follow and try to clear up what happened yesterday with $FINE.

Summary

  • Refinable’s coin went wrong. Was it a scam? Many investors that purchased $FINE have been claiming that it is a scam and thousands of users lost their trust in the project and new platform.
  • Co-founder Nick Chan tweeted nine issues of the token launch with bot manipulation playing a huge part even though they tried to prevent it.
  • Investors also say Binance has never mentioned Refinable and that it was a total scam using Binance’s name. This is not true since after our due diligence we found an entire live stream when they were discussing about NFTs and actually mentioned Refinable in the live and this is posted on Binance’s official twitter.

Firstly, it is important to mention that the cofounder of Refinable, Nick Chan, tweeted yesterday, after receiving a lot of negative and upset comments from investors the following:

Nick Chan tweet refinable

Obviously, this was the result of a not trustworthy launch that seemed to be a scam and people want to clear that up. Was it a scam or not?

He then went on and pointed out all the issues that occurred during the launch in a try to restore some faith in the company.

  1. There were reports of token contract leaks a few hours before the launch so the Refinable team reminted the entire token supply to mitigate bot setups.
  2. Refinable launched at the initial price of $0.0328.
  3. GoinGeck0 and Coinmarketcap price charts do not reflect the true initial price setting up because of delayed reporting. In our research, we also found that the initial price was $0.033 when in fact it was $0.0328.
  4. There was severe congestion on BSC starting with its Polkastarter IDO causing all TX to be extremely delayed (i.e. initial liquidity supply took 4 minutes to confirm).
  5. Public sale distributions were executed automatically but private sale and partnership distribution were issue manually and experienced massive delays.
  6. Staggered initial liquidity supply for 10 minutes to minimize the effect of predatory bots front-running the community
  7. Private sale TX (transactions) were issued in one disperse TX and saw massive delays, more than 30 minutes, because of how large the size of the contract was.
  8. Some smaller multisig (multisignature) TX executed earlier because of the smaller TX size outside of the dispersed TX, leading to staggered distribution of tokens.
  9. Final note, for over 1 hour after the initial liquidity, no private sale tokens were distributed and despite their best efforts, bots were still able to front-run the LP pool thus creating massive price movements within the first 30 minutes of the pool.

All these points along with a thank you to the supporters of Refinable have been tweeted by Nick Chan yesterday. He said due to the size of the community which is the largest NFT community in this space with more than 79,000+ addresses holding $FINE, the team and he are more than eager to deliver a stellar product for the community.

He then shared a video showing the bot activity that took place. There was one bot that basically bought 60% of the Refinable Token sale within the first few seconds and is the one that bit all the other bots. The video shows how the first book that was available shows 5 bots but the biggest one was the one that bought 60%. This basically shows that within the first seconds 80% of Refinable Token was already gone.

He paid 400 BNB which is about $220,000 for 2.7 million $FINE, 16 seconds later he started selling 1% every few seconds. In most of the sales the guy was making 500 BNBs and, in the video, it clearly shows the last sell transaction made with 1,600 coins for 25 BNBs. This is only the last transaction out of dozens showed in the video. Selling 1,600 is 0.05% of what he originally bought, just to phrase the exact words used.

For those of you who are not familiar with it, BNB has a current value of $590. BNB is the native coin of the Binance cryptocurrency exchange that is used to trade other cryptos.

Let’s examine Binance involvement in Refinable

Some people have been saying that Binance has never mentioned Refinable and that it was a total scam using Binance’s name. This is not true. Binance had an entire live stream when they were discussing NFTs and actually mentioned Refinable live and this is posted on Binance’s official Twitter.

People also said, Binance didn’t post them because they would not be involved in this kind of scam. However, our due diligence clearly shows the support from Binance towards Refinable.

Bottom Line

The coin launch created a lot of hype around it, which considering the mass amount of bot manipulation it can surely explain why it went wrong. However, this does not erase the fact that people lost thousands. The unfortunate part here is that the crypto world is unregulated so things might once again not turn in the favor of investors if they want to sue Refinable.

It is definitely not recommended to invest your life savings in anything that contains risk and you should always be aware of your purchases and make sure that in case of something going wrong you can afford to lose the amount of money you are “risking” in exchange for a potential reward. Buying a coin because of its hype has always more risk involved, and FDGT does not support purchases at IPOs and ICOs.

All these could be true, but it seems highly unlikely.

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.

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