Analysis of an Ongoing Dispute with Lunapad

On the 4th of May 2022, Creo Engine launched its token for the first time on two exchanges; MEXC and PancakeSwap, and something happened between Creo Engine and Lunapad, read more:

On April 28th, 2022, 2 SAFTs (Agreement) were signed between Creo Engine and Lunapad for Private Round (worth $25,000) and Pre-Public Round token allocation (worth $50,000). The launchpad’s co-founder requested the tokens to be vested on the launchpad’s vesting portal. Our team agreed on several conditions; the launchpad must abide by the project condition regarding the TGE amount, time, and date to which the launchpad agrees.

On the listing day, the launchpad’s requested our team to whitelist his wallet address; the reason for this was so that he could transfer “some tokens” to the MEXC exchange; our team rejected the request stating that the feature was not under our control.

Later that day, we observed the market, and the team found significant resistance in the MEXC exchange caused by multiple wallet addresses selling a substantial amount of $CREO tokens. Our team began to investigate this matter, as we are sure that the TGE released on that day was not supposed to be that high.

We then found out that all the wallet addresses belong to Lunapad, and all $CREO tokens (1.539.576 $CREO tokens) that the launchpad sold were supposed to be vested tokens. We also found out that there were still 238.994,75 $CREO tokens remaining in their MEXC address and 500,000 $CREO tokens in their BEP20 wallet.

We quickly confronted the launchpad’s team in the Telegram group asking for explanations for the deed. The launchpad’s co-founder verified that the massive selling was indeed their doing, and that happened due to us “selling a huge stake at listing and while trading,” which is utterly false.

In this chaotic situation, we decided to blacklist his BEP20 address using our smart contract feature, ensuring the 500,000 $CREO tokens will not be dumped as well (We later found out that they tried to send the tokens to other address twice but failed.)

Our team asked the launchpad’s co-founder to buy all the tokens they have sold, however they refused by stating, and we quote: “If your MM and Team is making money while public buying, then why can’t we make some profit as we are your early supporters, mate.” which is an utter lie, we will never do that as we are here for the long run!

The co-founder also said, “selling 1 or 2 million of $CREO tokens while there were 34 million of $CREO tokens being traded in the market won’t affect anything.” This statement is completely false, there were not that many $CREO tokens circulating in the market on the first day of listing.

After exchanging arguments and seeing that the launchpad is against making buyback, our team decided to focus on persuading him to send our funds back (Note that at this time, the remaining $ 50,000 funds from the Pre-public round sale were still not sent to us.) The launchpad’s owner proposed that he would send the $50,000 funds back to us and “close this matter.”

The launchpad transferred the funds to us, and we requested the launchpad to return all the remaining tokens to us (238,994 $CREO tokens in their exchange wallet and the 500,000 $CREO tokens in their already-blacklisted BEP20 wallet). We offered the launchpad’s co-founder to vest all the remaining tokens on Unicrypt following the agreement that has been made since the beginning. He rejected the idea and suggested us to “Take 238k Creo and lock it for 12 months linear vesting,” as for the remaining $CREO tokens, they “will open it to claim.”

The launchpad’s co-founder proceeded to say something that is very far from the truth; “Mate your team and your MM made good money from this project and if our founder made some money? What is the big deal ?”

Our team replied that the big deal was they broke the SAFT, which is something to be respected and followed thoroughly. The co-founder responded with: “Bro I said forget it,” and “Take time and decide wisely. I’ll be attending a meeting now and will catch you up in few hours”

Hours later, we asked him to return the 238,994,75 remaining $CREO tokens, and he agreed, but only if we would move on from the case and end this peacefully, to which we responded with: “yes and we wont discuss about this anymore with you.” He then sends us back the remaining $CREO tokens, and we have not spoken to them since.

Conclusion and proofs:

• We acquired the remaining 238,994.75 $CREO and $75.000 of token sale funds back.
• Their BEP20 address which has the remaining 500,000 $CREO tokens are still blacklisted until this day.
• This is the receiver address:

0xCb9d228Cde40631126D9BE9315e2fDa53b28DB4B

• These are the wallet addresses the Launchpad used for selling all the vested tokens:

1. 0x6D552FEcEDF5Db9aAB33fe1197566A6a898d3b03
2. 0xB7Bf64Cd10EF84055a9A2eB13e24642f8fa1f7Fb
3. 0xE2eF8f2aeD8F49b10cd61a1218daDB5A828D8EDb
4. 0xDFa5e1a695Bb15ee69F8ABa32b145837902dA3a0
5. 0x2Ca0A220357585AEa72BC2d8EADC049Eea95061B
6. 0x9e095De57504DC7CD7556a328353023276B2f6F1
7. 0xcd13c1D9AE57c1b2664540c724053627b39894aC
8. 0x5C07018F5f57999A536abafdfaCA06393EdB3EB3

Personal thoughts:

1. The beauty of blockchain is that everything is transparent and traceable. We believe this is one of the reasons why we’re here in this space.
2. Breaking the SAFT/agreement and then telling a project to “forget about it” is a big crime in this industry and shall be punished so that it will never happen again.
3. Selling unvested tokens will undoubtedly hurt the project, especially on the first day of listing. This is not acceptable in every way.
4. Long-term partners are supposed to help each other grow and respect the agreement that has been agreed upon.
5. Creo Engine is here for the long run. We will never hurt our creation, labor of love for quick profits. To mention that we had gained profits on the initial listing without any proof is considered a defamatory statement and is unacceptable.
6. Our team worked very hard on the launch day and were all exhausted; although there were heated arguments, we remained calm and professional in finding solutions.
7. Using the funds we received from the launchpad, we have spent all $75,000 on buyback and purchased 1.335.000 CREO tokens back from the market. Check: https://bscscan.com/address/0xa22950e58a48608c81a48649b3b545c86ed0ec37
8. As for the rest of the tokens we have received, they will all be BURNED (the remaining 500,000 $CREO tokens are now considered in a “dead wallet.”)