Space responds to community concerns about fundraising amount and transparency, decides to refund $7.3 million in excess funds

In response to community concerns, leveraged prediction market Space has issued a new official statement regarding token distribution, fundraising size, and refund issues after its recent public sale.

The current public sale attracted over $20 million, with 19.6% of tokens distributed from the community pool representing 51% of the token economy, equivalent to an FDV of approximately $69 million. To ensure fairness in distribution, the project has decided to refund over $7.3 million in excess funds, citing changes in refund addresses due to participant security concerns. The raised funds will mainly be used for leverage pools, liquidity development, security audits, team expansion, and listing on CEX.

Addressing disputes over the fundraising amount, Space clarified that the previously mentioned $2.5 million was a soft cap, not a hard cap, and the expansion of the fundraising size aims to support market liquidity and years of research and development to ensure long-term competitiveness. Previously, Space faced community skepticism due to issues related to fundraising size and team background. Several community members indicated that the team's previous project, UFO Gaming, saw its token price plummet by about 99% from its historical high.

The community accuses Space of transitioning to a prediction market after the old project failed to gain traction, without releasing any public or beta versions to date, and instead prioritizing the preparation of Hyperliquid perpetual contract code, raising suspicions of cashing out. Additionally, the community is unhappy with the project for not announcing the increase in the public fundraising amount after oversubscription in advance, and pointing out that some large refund addresses have been changed to new addresses with no transaction history.

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