This is Why GM.AI Token Lost Over $116M in Minutes After Launch

After securing $30 million in a public presale earlier this year, gm.ai has left investors deeply frustrated with a disastrous token launch. The GM token initially opened with a market capitalization of $120 million, but it quickly became one of the most turbulent and controversial launches this year.

Within minutes, GM token holders began selling off their tokens en masse, slashing the token’s market cap by over $116 million according to DEX on-chain tracker DexScreener. Although rapid sell-offs are not uncommon in presale scenarios, recent revelations hint at potential foul play behind the scenes.

The GM Token Presale

gm.ai, created by Dexter, the mastermind behind successful projects like Whales Market and LootBot, designed as the AI operational layer for the Solana blockchain. The platform aims to revolutionize the integration of AI into decentralized applications (dApps) by providing developers with powerful tools that simplify complex blockchain processes and enhance user experiences.

Dexter had promised that GM would be a groundbreaking advancement for Solana AI. However, the reality of the launch has led many investors to question his true intentions.

In the hours leading up to the launch, presale participants were issued xGM tokens, which were automatically staked in gm.ai’s Anchor protocol, a move that was not disclosed ahead of time. The staking mechanism was meant to encourage long-term holding, but when GM trading began, xGM holders discovered they were unable to unstake their tokens. 

Some users encountered 404 errors, while others found the “Unstake” button disabled, forcing them to watch as GM’s value plunged. Adding to their woes, GM tokens carried a 6% buy and sell tax.

Community Demands Transparency 

The presale, fueled by the team’s strong track record and a high appetite for risk in March 2024, managed to raise $30 million in less than an hour. Despite this, only $2 million was allocated to liquidity, a critical factor for maintaining price stability. The glaring disparity has left many in the Solana community questioning where the remaining $28 million went.

To make matters worse, those who participated in the GM presale have found themselves stonewalled by the gm.ai team. Many reports are blocked from the project’s Discord server, while social media posts from gm.ai are flooded with bot-generated positive comments, drowning out any criticism.

With no answers from the team, investors have turned to outside entities, tagging the CIA, SEC, and others in a desperate bid for an investigation. While it remains unclear what will happen next, the community is demanding transparency and accountability.