Key Takeaways
Ace of AI’s announcement of a supposed partnership with Phantom sparked criticism and led to investment in the ACE token. However, Phantom clarified that there was no official partnership, causing the value of ACE to drop.
Phantom, a well-known provider of multi-chain crypto wallets, faced backlash after their interaction with Ace of AI on social media was interpreted by many as a formal partnership between the two projects. This confusion resulted in losses for investors.
On January 9, Ace of AI announced on X that they were excited to partner with Phantom as part of the Phantom embedded early access program. In response, Phantom replied to Ace of AI’s tweet with a series of emojis that were mistakenly seen as an official partnership.
The announcement caused the price of ACE, Ace of AI’s token, to surge. According to data from GeckoTerminal, the token reached $0.017 following the news.
Phantom later deleted their comment and issued a separate statement clarifying that Ace of AI was only using their embedded wallet product and that no partnership or endorsement existed. They expressed their unawareness that their service would be used to endorse any token.
ACE’s value quickly dropped after Phantom’s clarification. Currently, it is trading at around $0.0005, which is a decrease of over 90% from its initial rally.
Users on X began questioning Phantom’s communication approach and confronting the company. Many investors reported feeling misled by the perceived association between the two companies, resulting in financial losses.
Phantom faced criticism for retweeting the emojis ♠️ shared by Ace of AI, despite claiming that there was no partnership. The company did not issue any apologies or take responsibility for the situation.
The incident led to accusations that Phantom had manipulated the market, causing a loss of $400k.
Source: @lynk0x
