When Dfinity launched the Internet Computer (ICP) token a few months back, many welcomed the news with joy. This was a crypto project that offered lots of promise. ICP Reboot is founded by people who were part of the Dfinity community from inception.
The token was released at a high valuation with a token worth around $630 when it went live back on May 10. Within a few weeks, the tokens have lost 95% of their value and the company behind the project sold more than 90 million tokens. This has led many to believe that the creators of the project had a self-serving reason for commencing the project and it may well be another of the numerous scams.
Unfortunately, Dfinity had a promising vision behind what they were building… a decentralized web, not controlled by the tech giants of today. This vision was something that carried a significant belief and backing and is unfortunate due to the fact of the dumping of insider holdings on external investors.
How it all started
The actions taken by the Dfinity Foundation have caused great uproar throughout the ICP community for several reasons. The community’s anger was initially ignited when the foundation announced that the drawn-out vesting periods would be placed on contributors without their previous consent or knowledge.
In addition to arbitrarily creating draconian vesting schedules, the team did not give clear information on how to access tokens or provide the proper support when responding to confused contributors. This was profoundly unprofessional in the best case scenario.
However, one could to some extent “forgive” tech and other issues that often plague new and cutting-edge projects but not when one realizes that in spite of the extremely long vesting periods placed on contributors, dfinity foundation and the key team members had no restrictions whatsoever accessing their tokens, and that important fact was disclosed only after the ICP launch.
It took Dominic Williams 16 days after the launch to admit that the foundation had no vested tokens. This would have been very relevant and potentially would have changed contributors’ decisions if Dfinity was transparent with this information.
Not only that the dfinity foundation and the key members (such as Dominic Williams) had no restrictions related to their tokens they in fact dumped large numbers of ICPs where they took advantage of the high price at the expense of the actual contributors and community members.
In recent week’s members and external research companies such as Arkham Intelligence have been able to identify that the 95% drop in ICP price was tied to Dfinity Foundation selling at least $2 billion and potentially more than $3 billion USD worth of ICP.
It is presumed that these deposits from the suspected insiders were sold off throughout the next months as there was no other entity involved with such a volume of liquid funds that could drop the price of ICP so dramatically.
The forced vesting schedules on investors along with the unvested insiders contributed to ICP’s price drop from $730 USD to around $35 USD (Exchange varying). In less than a month the 95% crash wiped over $300 billion USD from the market cap making it one of the worst crashes in crypto history.
What is Next
There has been talks that Dfinity Foundation plans to create another token called Badlands by forking ICP. Given that ICP was just released a few months ago, many contributors and community members are strongly opposed to it.
Other critics say that a new token could exacerbate the previous ICP token distribution debacle that took place following the main net launch in May. A majority of community members feel as though they are being cheated by Williams by Dfinity creating an entirely new token just to “re-pump” ICP.
They see it as another scheme being hatched by Dfinity Foundation which will not benefit community membership at all. Others believe it will worsen the issues arising from ICP token distribution as this new token might just be another pump and dump.
Beyond that, ICP community members are also adopting the blockchain route to achieve the mission of the project which led them to invest in the first instance. Currently, they are working on a solution to bring value back into the community and this solution will be known as ICP Reboot.
This time around, it will be a community driven protocol which will achieve the actual goals of the project while providing full support and transparency for contributors. With this, it is clear that the Internet Computer token may still have better and more transparent days.
ICP Reboot will finally address the failings of Dfinity Foundation and what will emerge from it will be a truly decentralized autonomous organization. As a relaunch of the ICP protocol, it will be community driven and the essence of forking is to establish democratic control necessary to create a more resilient and transparent protocol.
ICP Reboot is founded by people who were once part of the Dfinity community from inception and they are now part of an amalgamation of volunteers working for ICPR.
Instead of what happened with ICP where the Dfinity team controlled over 50% of token supply, ICPR intends to have a fair and fully decentralized distribution of its tokens. One of the core principles is to achieve justice by reallocating tokens that the foundation held and unlocking tokens that the actual owners were denied access to. This is why forensic investigations are still ongoing to fully determine what happened with ICP so it can be appropriately remedied.
The new project will first start as an ERC-20 token which will be distributed in a fair and transparent way. The whole process will be open and anyone can participate and contribute.