Space to Refund $7.3M Excess After Public Sale, Responds to Fundraising and Refund Transparency Concerns
Space announced it will refund approximately $7.3 million of excess funds raised during its recent public token sale after community concerns over fundraising size and refund transparency. The sale attracted over $20 million and allocated 19.6% of tokens from the community pool (51% of supply), implying an FDV near $69 million. Project leadership said some refund addresses changed for security reasons. Raised funds will be used for leveraged pools, listing liquidity, security audits, team expansion and CEX listings. Space clarified that a previously cited $2.5M figure was a soft cap, not a hard cap, and that enlarging the raise supports market liquidity and multi-year R&D. The announcement follows community criticism about the team’s history (alleged ties to the former game project UFO Gaming), a dramatic past token price collapse, lack of released product or public/private tests, alleged prioritization of perpetual contract code, and concerns about pre-adjustment of the sale cap without notice. Traders should note the refund decision reduces circulating raised capital and could ease short-term selling pressure from oversubscription, but reputational concerns and unanswered governance questions may continue to weigh on token sentiment.
Neutral
The refund of $7.3M addresses immediate concerns about oversubscription and reduces excess capital that might have caused selling pressure, which is a stabilizing move for the short term. However, deeper issues remain: community distrust over the team’s history (links to a prior failed project), lack of deliverables or product releases, and opaque actions around cap adjustments and refund address changes. Such reputational and governance concerns can sustain negative sentiment and limit strong buy-side interest. Historically, token projects that refund or revise raises after community pushback often see a short-term relief rally or muted volatility, but longer-term price recovery depends on demonstrable product progress, transparency, and credible audits/listings. For traders: expect limited immediate buying impetus (neutral short-term), potential volatility around refund processing and on-chain address activity, and continued sensitivity to project updates. Monitor on-chain refund flows, announcements of audits/CEX listings, and community governance responses for directional cues.