TechFlow news, liquidity protocol Lena Network has denied allegations of a rug pull in an official blog post, explaining that there were multiple reasons for sending fundraising proceeds to OKX. These include converting raised ETH into USDT, as LENA's operations and automated market maker (AMM) pools are based on USDT, making this step necessary. The team chose this method over on-chain transfers to avoid high gas fees and transaction slippage. The funds are primarily allocated toward the project’s future development, including development costs, marketing, listing fees, and liquidity.
The project further explained: "In response to community feedback, we have taken additional measures to transfer the funds back to a cold wallet to ensure the safety of assets."
Lena Network stated that it transferred 100 ETH to OKX after concluding its private sale round but did not anticipate such a strong reaction from the community.
Lena Network added: "Based on community feedback, we originally planned to renounce ownership of the token contract to prevent any new minting and to reassure the community of our commitment to decentralization and security. However, we were reminded that ownership had not been fully relinquished, and this action was taken to further reassure our community. Misinformation has spread inaccurately, and we want to clarify that renouncing ownership of our token contract does not mean the project is ending." Lena Network also stated it will implement a compensation plan for IFO participants due to its "execution missteps."
