Written by: ChandlerZ, Foresight News

On April 29th, Solana's leveraged prediction market project, Space (token SPC), officially launched trading, simultaneously listing on five exchanges: Kraken, KuCoin, MEXC, BitMart, and Bitpanda. After opening, its market capitalization peaked at approximately $83 million, before entering a one-sided decline, hitting a low of $2.13 million within the day, a drop of over 97%.

As of April 30, SPC's market capitalization was approximately $5.5 million, still down more than 93% from its opening high.

As the collapse occurred, many users who participated in the public sale reported on X that the project team had not yet distributed tokens to the public sale buyers, while trading on exchanges had already begun, and the price had plummeted before they received their tokens. This means that public sale participants were essentially locked up at a high price, watching the price drop from $0.08 to $0.005, without having any tokens to trade.

One user directly claimed that the Space project "scammed $15 million," with FDV plummeting from $70 million to below $8 million. Another user wrote: "Another day, another scam... Down 90% in the first hour. Presale buyers couldn't even claim."

Who sold off their tokens after the market opened? If the public sale buyers hadn't received their tokens yet, then the only people selling on the exchange could be insiders, market makers, or other groups who had received tokens in advance. Their selling directly triggered the price crash. Ordinary public sale participants, without receiving their tokens, effectively became passive holders with no way out.

What is Space?

Space positions itself as the first prediction market platform on Solana to support 10x leverage, allowing users to trade with YES/NO leverage on events such as cryptocurrencies, politics, and sports. The platform promises 0% Maker fees, and 50% of its protocol revenue is used to buy back and burn SPC. In December 2025, Space announced the completion of a $3 million seed round of financing, with investors including Morningstar Ventures and Arctic Digital. Space also received investment from the echo community. A public sale was subsequently launched.

In terms of token distribution, the total supply of SPC tokens is 1 billion, of which 51% is allocated to the community pool.

The fund was oversubscribed 8 times, and disputes over refunds began in January.

Launching on December 18, 2025, Space announced the start of its token sale, accepting USDC, USDT, and SOL as investments. Initially, $2.5 million worth of tokens will be sold at a fixed FDV of $50 million. Once this target is reached, the sale will continue, but the FDV will linearly increase until it reaches $99 million. After the sale concludes, each participant will purchase tokens at a uniformly calculated price.

On January 21, Space publicly announced its sales distribution process, stating that it had raised over $20 million, of which $14 million had been allocated and $6 million would be returned to participants on January 21. For participants who had received allocations (or partial allocations), the funds would be distributed at a liquidation price of $0.069 (US$69 million FDV), and partial refunds would be returned to designated wallet addresses on January 21.

However, the project subsequently faced community scrutiny due to issues such as the scale of its fundraising and the team's background. Several community members stated that the team's predecessor appeared to be the gaming project UFO Gaming, whose token price had plummeted by nearly 95% from its historical high.

The community accuses Space of shifting to prediction markets after its previous projects failed to gain traction, yet it has not released any public or beta versions to date. Instead, it prioritizes preparing the Hyperliquid perpetual contract code, raising suspicions of cashing out. Furthermore, the community is dissatisfied with the project's failure to announce the increase in the public offering amount after oversubscription, pointing out that many large refunds were processed to new addresses with no prior transaction history.

According to the official statement, the project has decided to refund over $7.3 million in excess funds, explaining that some refund address changes were due to security concerns by participants. The funds raised will primarily be used for leveraged pools, liquidity building, security audits, team expansion, and listing on CEXs. Regarding the controversy surrounding the fundraising amount, Space explained that the previously mentioned $2.5 million was a soft cap, not a hard cap, and that expanding the fundraising scale aims to support liquidity in the leveraged market and years of research and development, ensuring the project's long-term competitiveness.

However, the community's doubts did not subside, with the focus on the lack of prior disclosure regarding the possibility of oversubscription and whether large investors and retail investors were treated differently during the refund process. Some users believe this is already a "soft rug" (a scheme to abscond with investors' money).

Four months of waiting resulted in a collapse.

According to the earliest official information, the TGE of Space token SPC was originally planned to be completed around January 2026, but was actually postponed to the end of April. The more than three months of waiting exhausted the community's patience. From the oversubscription controversy in January to the TGE's completion at the end of April, buyers experienced a complete chain of issues including opaque refunds, repeated timeline delays, and insufficient information updates. When the token went live on April 29th, many public sale buyers discovered they hadn't received their tokens at all. This accumulated distrust erupted, resonating with the selling pressure after the opening, causing the price to spiral out of control within hours.

As of press time, the project team has not issued an official statement regarding the price crash on April 29 and the failure to distribute tokens.