Good morning.
Well it looks as though the whole Liquid Capital fiasco has come to a conclusion.
So it seems like L.B (the developer from Grape finance) and N.B (the tokenomics guy) took on an active community member called Eric Bagrianov to do their marketing. For the first couple of weeks he was unpaid but then he was quickly added on to the payroll of Grape Finance.
Then these three people became the founders of Liquid Capital. They ended up with over 20 partnerships. Titano, Frozen Walrus and EMP to name a few. The idea behind it was to establish a 'circle of trust' and share marketing, working together to provide 'safety, sustainability and price stability in defi'!
They started with a pre sale that very quickly grew to over 2 million dollars in under 2 weeks. If you were in a project of one of the partnerships you could get a 20% discount.
It is quite difficult to find out exactly what happened but it seems that one of the partnerships, Orbital were up to no good and L.C were going to buy them out. It is unsure if the founders of Orbital actually got any money, it seems that no one knows. (scammers scamming scammers).
Apparently the rebase model for L.C was only to be for a very short time as they knew it would not work with the liquidity management system they were implementing, somehow this ended up being extended and they were running out of money too fast. Then there was a group call between the founders and some of the partnership devs where they discussed having to turn off the liquidity management system, no one seemed to take it seriously. They had suggested that the L.M.S would be shut down in 10 days then some of the people left the call. What actually happened was N.B shut it down the next morning.
The liquidity pool started to decline rapidly (this was not under a multi sig!) There is a few million missing and Eric is no where to be found after showing off pictures of his new expensive watch on Instagram!
On a positive note L.B and N.B both gave back their salay $60 - $70K each as of posting, Eric said no but did give back $5,000 of his salary in the end.
The liquid Capital airdrops have happened and the investors managed to get back between 60 to 70 % of their initial investments, which is better than nothing even though it is not great.
The Obsidian Council who K.Y.C' the Liquid Capital or at least team still don't show this as a failed project or a rug pull on their website,
L.B and N.B have gone back to focus on Grape Finance but how will those investors feel about the project now? Would you trust them again after this? I know i wouldn't. Was it planned or just a mistake? I guess we will never know the full details.
Stay safe in the wild west.
Thank you for reading and feel free to comment.
Screenshot from https://www.theobsidiancouncil.com
