exitliquidity

The crypto community is in an uproar over the last 24 hours as $ZAMA , the high-profile FHE (Fully Homomorphic Encryption) project, saw its token price collapse immediately following its listing and claim event. While the project continues to tout its "groundbreaking technology," the market reality tells a story of broken trust and questionable ethics.
Here is a sharp breakdown of why the Zama Team is facing heavy criticism for what many are calling a "Soft Rug."
1. The $0.05 Betrayal: Listing Below Presale Price
The most glaring issue is the price action relative to the public auction. Zama successfully raised approximately $50 million from retail investors through a high-stakes auction, with a clearing price of $0.05.
The Reality: Within hours of the claim event on February 2nd, the price tanked to $0.034—a 32% drop below what the earliest supporters paid.The Problem: For a project that just pocketed $50 million in cash, the total lack of market support (Market Making) is staggering. Investors are left asking: Where is the $50M, and why wasn't a fraction of it used to maintain a price floor for the community?
2. Orchestrated "Exit Liquidity"
The launch was perfectly timed to turn retail buyers into "exit liquidity." By allowing a massive, unvested claim for thousands of wallets simultaneously without sufficient "Buy Walls" in place, the team essentially invited a death spiral.
The Strategy: Raise funds at a high valuation ($0.05), hype the "revolutionary" tech, and then stand aside as the price crashes, leaving the team with $50M in stablecoins while investors hold a bag that is down 30% on day one.A "Soft Rug": While not a traditional rug pull (where liquidity is drained), this "Soft Rug" approach leaves the project's reputation intact legally while financially devastating the community.
3. Tone-Deaf Communication
As portfolios bled, the Zama team remained focused on academic posts and technical milestones. This disconnect between the team’s "vision" and the investors' "loss" has soured the project's image.
In crypto, Price is the Product. If the team doesn't value their own token enough to defend the $0.05 auction price, why should anyone else believe in the long-term ecosystem?
🚩 Final Verdict: Technology Over People?
Zama might have world-class encryption, but their Tokenomics Management is a failure. By failing to protect the auction price, they have signaled that the community is merely a source of capital rather than a partner in the network.

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All posts are for informational purposes only | Personal insights, not financial advice | DYOR

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