Over $100M Wiped Out in Minutes During Catastrophic gm.ai Launch

After raising $30M in a public presale earlier this year, gm.ai has disappointed investors with a devastating token launch. 

Summoning everyone from the CIA and the SEC to crypto’s favorite onchain detective zachxbt, presale participants are demanding justice.

What happened?

GM Finally Launches, Chaos Erupts

Five months after collecting $30M in presale funds, gm.ai’s highly anticipated token launch went live. Opening at a market capitalization of $120M, the GM token launch quickly proved itself one of the most violent and controversial token launches of the year.

In a matter of minutes, GM holders dumped their tokens into oblivion, erasing over $100M from the token’s market cap. However, while this isn’t uncommon in presale token launches, additional details have emerged suggesting that foul play was at hand.

In the hours before the launch, presale participants received xGM tokens. Uncommunicated ahead of launch, these tokens were staked in gm.ai’s Anchor protocol, a rewards system designed to incentivize long-term holding.

When GM trading went live, xGM holders were unable to unstake their tokens from the Anchor platform. Some users reported 404 errors, while others claimed that the ‘Unstake’ button was blocked, leaving them to watch in despair as GM price plummeted over 80%. On top of an immense raise, GM also features a 6% buy and sell tax.

Despite raising $30M in funds, only $2M was added to liquidity. This vast discrepancy has left many Solana ecosystem participants scratching their heads over what the remaining $28M could have been used for.

Adding insult to injury, GM presale contributors have found that all questions directed to the team have gone unanswered. Many users report being blocked from the project’s Discord server. Meanwhile, gm.ai’s social media posts have been botted with positive comments, drowning out criticism.

With nowhere left to turn, commentators wasted no time tagging entities like the CIA and the SEC in gm.ai’s social media posts in the hope of an investigation.

SolanaFloor contacted the gm.ai team for comment on the unfolding situation but is yet to receive a response.

The GM Presale

Following the success of the team’s previous projects Whales Market and LootBot, expectations were high for what investors believed would be Dexter’s magnum opus. Envisioning a revolutionary protocol, Dexter promised that GM would be the future of Solana AI.

In a now-deleted tweet, Dexter asked willing participants to send SOL to an onchain address with the blind promise that presales contributor would receive an airdrop of tokens when the project was ready to launch.

Off the back of the team’s reputation and the market’s high-risk appetite in March 2024, the presale raised over $30M in under an hour.

Since March’s presale event, the gm.ai team has released Intent Trade, an AI-powered trading platform. Part of the wider gm.ai ecosystem, Intent Trade leverages AI to help traders analyse tokens in Solana’s DeFi markets and trade assets using written commands through a dedicated smart account.

At press time GM trades at $0.022, with presale participants taking the brunt of the damage. Contributors across the ecosystem sustained heavy losses, with some claiming to be down over 80% with a loss of 3000 SOL.

The event serves as a timely reminder of the dangers of participating in unverified token presales conducted over social media.

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