In a dispute that originated on Feb. 22, decentralized exchanges (DEXs) Onchain Trade and Camelot terminated an agreement for the former’s initial fair offering (IFO), with both firms alleging that the opposing counterparty acted in bad faith. An IFO, while still an emerging concept, typically involves promises made by developers consisting of no venture capitalist involvement, no whitelist, no presale and vast majority of income going to tokenholders, on top of a traditional initial coin offering.
As told by Onchain, developers began negotiations with Camelot for an IFO, for which the latter charged a fee of 2%, and both parties agreed upon the amount. In addition, Camelot required that Onchain exclusively sell tokens on its platform, to which Onchain also agreed. However, at this point, Onchain alleged that Camelot became “more demanding and trying to start another round of bargain; we started feeling uncomfortable working with Camelot and decided to terminate deal with them altogether.”