Space Protocol defends token sale amid backlash over $20 million raise

Space Protocol's public token sale for its Solana-based leveraged prediction market attracted over $20 million in demand against a cited $2.5 million target, leading to immediate criticism comparing the oversubscription to the controversial Trove Markets launch.

Space Protocol rejected these comparisons, clarifying that the $2.5 million was a soft cap, not a hard ceiling, and stated they returned over $7.3 million in excess capital after allocating 19.6% of the total supply to the public sale. The team asserted the additional funds are necessary for seeding liquidity, exchange listings, and building enterprise-grade systems.

Despite these assurances, critics remain skeptical, citing concerns over the large retained funds, aggressive marketing, and perceived similarities in branding with Trove Markets. Further scrutiny focused on the founders' past involvement with the UFO Gaming project and the lack of visible product usage for touted partnerships.

(Source：The Block)