Twitter Users Blame NFT Platform Manifold For $ASH Token Dump

Manifold is under suspicion for what appears to be an impromptu dump in the aftermath of an unsuccessful NFT drop involving Pak, a popular digital artist.

To purchase the $ASH tokens needed to buy the NFTs, potential buyers were required to purchase the “Ash Chapter II Metamorphosis” collection from Pak. This was a highly anticipated collaboration with many artists including Paris Hilton and Steve Aoki.

Manifold, one the most prominent names in NFT minting, completely botched the March 28 drop. Hundreds of users reported that their transactions had failed. Many people didn’t receive their NFTs. However, they were still charged $ETH gas fees. Some claimed they had lost as much as 0.8 $ETH (around $1,750).

If not for the sudden drop in the value of $ASH tokens, hundreds of customers would have been forgiven for such a huge mistake. Manifold was first made aware of the failures by Manifold, but it wasn’t yet public knowledge. Within minutes, someone had dumped millions upon exchanges and sent the price down more than 60%. Manifold’s customers were not only unable to obtain their NFTs, but they also lost a lot of money in gas fees. They also ended up with bags full of tokens that were seriously undervalued.

This episode is reminiscent of a pump-and-dump. The price of $ASH shot up from $15.61 and as high as $24.56 within hours of the NFT drop. Art fans rushed to purchase the tokens to make sure they didn’t miss out. The price plummeted to $8.09 within 10 minutes. It has not recovered since then.

What happened to the NFT drop?

There is much debate about the reason for the NFT failure. Manifold published an autopsy quickly, placing the blame on hundreds of “botters”. It said that metadata issues with certain NFTs and network congestion were also factors in the episode, which caused MetaMask wallets problems with gas fee estimations.

Manifold wrote in a blog that “sadly, this wasn’t the experience we intended.” It said, “We know that we can do better”, before going on to detail its plans to remedy the situation.

Some customers bought these excuses and praised the company in responses to its tweet, while others disagreed with its reasoning. Cody Randolph, a Twitter user, accused Manifold to trying to shift blame for the botched drop onto other customers when, in fact, it should be fully responsible for what happened.

Bots interfacing with contracts and/or network congestion do not affect gas limit estimations for contracts. Developers are the only ones responsible.

— Cody Randolph (@c0dyrandolph) March 28, 2022

Murat Karademir (a Twitter user) responded to Manifold’s tweet. He said that he had examined the smart contract for metamorphosis mint and found that the issues were due to the use of a randomizer to ensure that each buyer received a token.

The problem lies in the random selection of creator accounts. Metamask can’t predict the actual mint function, and so it can only “estimate” the gas cost.

— Murat Karademir (@MuratKun) March 28, 2022

He said that Manifold should have anticipated this and added an additional 10% gas limit to the transaction before it was sent to metamask.”

Murat Karademir estimates that customers have lost 808 $ETH in gas costs due to failed transactions.

Manifold has promised customers that it would make good on its failed drop and give customers hope that they will receive their NFTs. It stated that it would lock all tokens issued under v1 smart contracts “forever” in order to deploy a smart contract that addresses the token metadata issues. Participants in the drop will all receive an NFT under the new v2 smart contract. Only “botters” will be able claim a $ASH token refund. Manifold also promises to reimburse users for $ETH lost in gas fees.

We ignore the real issue

It is suspicious that Manifold has not mentioned the most criminal act of that day. In addition, it tried to excuse itself from any responsibility for the failure to drop. It has not mentioned anything about the $ASH price drop that followed the failed transactions in its autopsy or tweets.

DavidCash.eth (a Twitter user) said that the incident looked like a classic rug pull. It caused anyone who didn’t buy an NFT, to lose more than a quarter of their $ASH investment.

Hey @muratpak I bought 150 burn for over 3k and then tried buying 3 pieces and all of my transactions failed despite spending hundreds in gas- worse- since I couldn’t spend my $ASH it went down by HALF in value so I can’t even get money back…Really hope you can propose a fix

— DavidCash.eth.eth gm [@davidcash888] March 28, 2022

Manifold was actually retweeted by many Twitter users, who highlighted the $ASH dump. It is suspicious that the company will not acknowledge what happened because it refuses to admit it.

Although there is no evidence that the pump-and dump was planned, it appears like someone took advantage when it became apparent that the smart contract was not working as expected. Someone who had to have known what was happening at a time most people didn’t.

Manifold could have been forgiven for its mistakes in the smart contract implementation. However, Manifold’s attempts to blame others and then profit from the mess by dumping $ASH tokens are not only unacceptable but also untrue.

Although the allegations may not be proven, they can be made public so that others can make their own decisions.

Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

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