Key Takeaways
Phantom has received criticism and faced a drop in investment in ACE after Ace of AI announced a supposed partnership, which was later clarified by Phantom to be not official.
Phantom, a well-known provider of multi-chain crypto wallets, has faced criticism due to their social interaction with Ace of AI. Many people interpreted this interaction as a formal partnership between the two projects, leading to confusion and financial losses for investors.
On January 9, Ace of AI announced on X that they were excited to partner with Phantom as part of the Phantom embedded early access program. In response, Phantom replied to Ace of AI’s tweet with a series of emojis that were mistakenly perceived as an official partnership.
Source: @lynk0x
The announcement caused a significant increase in the price of Ace of AI’s token, ACE. According to data from GeckoTerminal, the token reached $0.017 after the news.
Phantom later deleted the comment and issued a separate statement clarifying that Ace of AI was only using their embedded wallet product and that no partnership or endorsement existed. They expressed unawareness that their service would be used to endorse any token.
There is no partnership. @Aceofai is just using our embedded wallet product. We are NOT endorsing any token and weren’t aware we would be used to do so.
— Phantom (@phantom) January 9, 2025
After Phantom’s clarification, ACE’s value quickly dropped. It is currently trading at around $0.0005, which is more than a 90% decrease from its initial surge.
Users on X started questioning Phantom’s communication approach and confronting them. Many investors reported feeling misled by the perceived association between the two companies and experienced financial losses.
If there is no partnership, why did @adamdelphantom retweet the ♠️? No apologies or responsibility taken by @phantom. We’re literally getting RUGGED over here due to your incompetence.
— Psycho (@PsychosCalls) January 9, 2025
Phantom just rugged everyone and pulled out $400k from the chart.
— lynk (@lynk0x) January 9, 2025