Opened and crashed, many public sale buyers have not received their tokens

Written by: ChandlerZ, Foresight News

On April 29, the Solana leveraged prediction market project Space (token SPC) officially launched for trading, simultaneously landing on five exchanges: Kraken, KuCoin, MEXC, BitMart, and Bitpanda. After opening, the market cap reached a peak of about 83 million USD, then it entered a one-sided decline, dropping to a low of 2.13 million USD on that day, falling over 97%.

As of April 30, SPC's market cap is approximately 5.5 million USD, down more than 93% from the opening peak.

During the crash, a large number of users participating in the public sale reflected on X that the project team had not yet distributed tokens to public sale buyers, while trading on the exchanges had already begun, and prices had plummeted before they received their tokens. This means that public sale participants were effectively locked in at a high price, watching as the price fell from 0.08 USD all the way down to 0.005 USD, with no tokens in hand to trade.

Some users directly claimed that the Space project "took away 15 million USD," with FDV crashing from 70 million to below 8 million. Another user wrote: "Another day another scam... Down 90% in the first hour. Presale buyers couldn't even claim."

Who sold off heavily after opening? If public sale buyers have not yet received their tokens, then those selling on the exchange must be insiders, market makers, or other groups who received tokens in advance, and their sell-off directly triggered the price crash. Ordinary public sale participants, without having received tokens, effectively became passive holders without an exit channel.

What is Space

Space is positioned as the first leveraged prediction market platform on Solana, allowing users to conduct YES/NO leveraged trading on events such as cryptocurrencies, politics, and sports. The platform promises 0% Maker fees, with 50% of protocol revenue used to repurchase and burn SPC. In December 2025, Space announced the completion of a 3 million USD seed round financing, with investors including Morningstar Ventures and Arctic Digital, in addition to receiving investment from the echo community. It then launched the public sale.

In terms of token distribution, the total supply of SPC tokens is 1 billion, with 51% allocated to the community pool.

Oversubscription by 8 times, refund disputes began in January

On December 18, 2025, Space announced the launch of the token public sale, accepting USDC, USDT, and SOL contributions. Initially, it intended to sell tokens worth 2.5 million USD at a fixed FDV of 50 million USD, and once the goal was reached, sales would continue, but FDV would linearly increase until it reached 99 million USD. After the public sale ended, each participant would purchase tokens at a uniform price calculated after the sales.

On January 21, Space publicly disclosed the sales allocation process, stating that it had raised over 20 million USD in total, with 14 million USD already allocated and 6 million USD to be returned to participants on January 21. For participants who had been allocated (or partially allocated), distribution would occur at a liquidation price of 0.069 USD (69 million USD FDV), with partial refunds scheduled to be returned to specified wallet addresses on January 21.

However, the project soon faced community skepticism regarding the fundraising scale and the team's history and background. Multiple community members expressed that the team was suspected to be a former gaming project, UFO Gaming, whose token price had plummeted nearly 95% from its historical high.

The community accused Space of transforming into a prediction market after the previous project showed no signs of improvement, and as of now, it had not released any public or internal testing versions but instead prioritized preparing the Hyperliquid perpetual contract code, raising suspicions of cashing out. Additionally, the community expressed dissatisfaction with the project's adjustment of the public fundraising amount without prior announcement after oversubscription, pointing out that many of the large refund addresses appeared to be new addresses that had been changed, with no historical transaction records.

According to an official explanation, the project decided to refund over 7.3 million USD in excess funds and explained that the address changes were due to participants’ security considerations. The raised funds would mainly be used for the leveraged pool, launching liquidity construction, security audits, team expansion, and CEX listings. Regarding the controversy over the fundraising amount, Space explained that the previously referenced 2.5 million USD was just a soft cap rather than a hard cap, and expanding the fundraising scale aimed to support leveraged market liquidity and years of research and development to ensure the project's long-term competitiveness.

However, the community's skepticism did not dissipate, focusing on whether the possibility of oversubscription was adequately disclosed in advance and whether large players and retail investors were treated differently during the refund process. Some users considered this to be a "soft rug."

Four months of waiting resulted in a crash

According to the earliest official information, the TGE for Space token SPC was originally planned to be completed around January 2026 but was actually postponed until the end of April. The more than three-month wait drained the community's patience. From the oversubscription controversy in January to the TGE landing at the end of April, buyers experienced a complete chain of events involving refund opacity, repeated delays in the timeline, and insufficient information updates. When the token launched for trading on April 29, but many public sale buyers found that they had not received their tokens at all, the accumulated distrust exploded, resonating with the selling pressure that followed the opening, causing prices to spiral out of control within hours.

As of publication, the project has not issued an official statement regarding the price crash on April 29 and the issue of undelivered tokens.