$FAN exploit — the process of reimbursement
Dear Community and Token Holders,
Following the exploit and way-forward articles we published in August and September 2022 (https://fanadise.medium.com/fan-token-way-forward-c8fbe2e0e585), we would like to inform you that we have made the decision to implement the compensation plan and give money back to all the official presale and public sale holders.
This decision is one we have made to ensure that our holders and community (in all projects that we’re working on) are always our highest priority. We understand that this is an unprecedented move in the crypto space. We will contribute some of our personal funds to ensure that this will not have a negative effect on the company’s ongoing business.
TL;DR Fanadise Story
We always acted with the best intentions. We began this business in the beginning of 2021 as three friends, aiming to invent a new form of communication between fans and influencers using blockchain. We enlisted the expertise of Chris Perdek, as our advisor in the crypto space, to assist us in designing our tokenomics, planning our fundraising, and connecting us with crypto influencers and venture capitalists. We invested our own money to build a Minimum Viable Product and influencer personal website management tools. Furthermore, with the involvement of a well-known and highly connected influencer, Stuart Burton, as a co-founder, we were sure that we would be able to attract top influencers to join us in our mission to empower the creators all around the world.
We did all we could to make our vision a reality. We assembled a fantastic team of 30 people, and everyone worked incredibly hard, often putting in more than 16 hours each day and even taking naps in the office. Unfortunately, the actual result was not what we had hoped for due to the overwhelming domination of competitive platforms and the apprehension many influencers held towards blockchain technology.
We refused to give up, though, and instead focused more on the Web3 aspect of things, releasing the first version of our Fanadise NFT platform in June 2021. It was fully operational from February 2022. We tried more than 10 different types of NFT drops, also with celebrities (like the biggest Polish Tiktokers Neffati Brothers or a UFC Champion Joanna Jedrzejczyk). After the release of our product and gathering data from the first NFT drops, we haven’t seen sustainability in this model. The influencers had problems with delivering enough value to keep communities engaged and their projects growing. Additionally, Stuart Burton had to leave the company for personal reasons, which was a major blow as he had been the primary recruiter of influencers. To our knowledge, no similar platform had been developed up to that point. We had to evolve.
Meanwhile the crypto market collapse stimulated by the neverending waves of sandwich attacks made by trading bots created a panic sell-off for FAN token holders, and we tried to counteract it with multiple buybacks both through the contract, market makers and centralized exchanges. Unfortunately, our efforts were unsuccessful. We kept searching for the best possible solution for our holders. We had to pivot. We decided to use our technology and create PFP NFTs — avatars, as well as Dynamic NFTs Infrastructure Trait Swap.
As a company, we were doing well, yet we were still unable to address the FAN token issue. Despite our hopes of creating a firm connection between the business and the token, the market crash and high selling pressure made it impossible. We still held onto the hope of finding the right solution, but that hope was dashed when an exploit was discovered in the migration contract. This caused the FAN token to drop another 90%, and it was no longer possible to recover it.
In light of this, we decided that the best course of action was to issue a reimbursement to our earliest holders, which is an event unprecedented in the history of Polish crypto space and is also very rare on a global scale. We regret the holdup, however the crypto market crash caused us to suffer not only a financial loss, but also made it very difficult to build new solutions in worsening market conditions. In order to make sure all of our presale and public sale holders are reimbursed, we have pooled our own funds as well. It is essential that this issue does not have an adverse effect on our ongoing business operations.
This has been a very difficult experience for us as founders. Fanadise is still in operation, but we will no longer be supporting the $FAN token. We appreciate your support and apologize for any inconvenience this may have caused.
END OF $FAN TOKEN STORY
The key rules for reimbursement are as follows:
1. All presale and public sale holders, who held the new FAN (contract address 0xb6d48fcef36e19681ee29896b19c1b6cbd1eab1b) tokens till the day of exploit are eligible for a reimbursement. In other words, only wallets that still have the initial tokens will get it.
2. Reimbursements will be issued in the same currency that was used during the Presale/Public Sale.
3. Reimbursements will begin to be processed from the day after this announcement.
4. A form must be completed to receive a reimbursement, and all transfers will be manually verified by our team due to the token migration and staking.
5. Those who still wish to participate in the project and don’t want a reimbursement will have the opportunity to indicate this on the form.
6. The whole process will be concluded by October 31, 2023.
7. Reimbursements will be paid out in three installments: March 2023, Q2 2023, and Q3 2023.
8. Reimbursements will be issued based on a first-come, first-served basis.
THE OFFICIAL FORM: