Investors have filed a lawsuit against Seer Network, a blockchain-based platform, accusing insiders of selling millions of dollars worth of tokens immediately after the Initial Coin Offering (ICO) held in 2021. This mass token dumping caused a sharp decline in the token’s price, severely damaging Seer Network’s market reputation and resulting in significant financial losses for investors. Seer Network provides data management and blockchain integration services, and its ICO initially attracted substantial interest and investment by issuing new digital tokens to fund company growth. However, the sudden increase in token supply due to insider sales led to a market downturn, eroding investors’ profit potential. The investors are demanding compensation for their losses and legal action against those responsible, claiming the incident was a planned fraud aimed at deceiving the market for personal gain. Such allegations risk further undermining investor confidence in the already volatile and regulatory-challenged cryptocurrency sector. The outcome of this case could set new standards for transparency and accountability within the crypto industry, serving as a warning to blockchain companies against insider market manipulation if the court rules in favor of the investors.
Source: coindesk
