On April 29, Space, a leveraged prediction market platform built on Solana utilizing the SPC token, officially commenced trading across five major exchanges: Kraken, KuCoin, MEXC, BitMart, and Bitpanda. The token's market capitalization initially surged to a peak of approximately $83 million but experienced an immediate and severe reversal, bottoming out at $2.13 million within the same trading session. This precipitous decline represented a loss of over 97% from the opening high. By April 30, the market value had stabilized slightly at around $5.5 million, yet the asset had still erased more than 93% of its initial valuation.

Concurrently, a significant portion of the presale community reported on social media that the project team had failed to distribute tokens to early investors despite the commencement of public trading. This operational failure left presellers effectively locked into positions at a price of $0.08, watching the asset value plummet to $0.005 without the ability to execute sell orders. Data compiled by Woofun AI indicates that the total fair value of the tokens fell below $80 million, prompting users to label the event a scheme that extracted $15 million from participants.

The mechanics of the price collapse suggest a divergence between presale participants and active sellers on the exchanges. Since presellers had not received their tokens, the massive selling pressure observed immediately after the market opened must have originated from insiders, market makers, or other entities that had already secured token allocations. This dynamic created a scenario where ordinary presellers were unable to exit their positions while the market price was driven down by external liquidity providers. Space positioned itself as the first prediction market on Solana to offer 10x leverage, enabling users to place YES/NO bets on cryptocurrency, political, and sports events. The platform's economic model promised a 0% maker fee and committed to using 50% of protocol revenue to buy back and burn SPC tokens. In December 2025, the project announced the completion of a $3 million seed financing round with backing from Morningstar Ventures and Arctic Digital, alongside funding from the echo community prior to the presale launch.

The tokenomics structure allocated 51% of the 1 billion total SPC supply to the community pool. The presale, which began on December 18, 2025, accepted payments in USDC, USDT, and SOL, initially offering 2.5 million tokens at a fixed fair value of $50 million. Once this tranche sold out, the fair value was designed to increase linearly until reaching $99 million, with all participants eventually purchasing at a unified price based on remaining supply. On January 21, Space disclosed that it had raised over $20 million, with $14 million allocated and an additional $6 million scheduled for return to participants. Those who received tokens were compensated at a liquidation price of $0.069 per token, totaling $69 million in fair value, with refunds directed to designated wallets.

However, skepticism quickly mounted regarding the fundraising scale and the team's background. Woofun AI notes that community members identified the team's predecessor as likely being the gaming project UFO Gaming, whose token had already dropped nearly 95% from its historical high.

Criticism intensified as the community observed Space transitioning to a prediction market platform without releasing a public or beta version of its product. Instead, the team appeared to prioritize developing Hyperliquid's perpetual contract code, fueling suspicions of a rapid cash-out strategy. Dissatisfaction also arose from the project increasing the presale quota without prior notice following oversubscription. Concerns were further exacerbated when large-scale refund amounts were sent to newly changed wallet addresses with no previous transaction history. In response, the project explained that over $7.3 million in excess funds would be returned, attributing some address changes to participant security concerns. The raised capital was designated for building the leveraged trading pool, enhancing exchange liquidity, conducting security audits, expanding the team, and securing CEX listings. Space clarified that the previously cited $2.5 million figure was a soft upper limit rather than a hard cap, arguing that expanding the fundraising goal was necessary to support market liquidity and fund several years of development.

Despite these clarifications, community doubts persisted regarding the lack of disclosure about oversubscription possibilities and potential disparities in how large and small investors were treated during the refund process. Some users characterized the situation as a form of "soft rug pull." The Token Generation Event (TGE) for SPC was initially scheduled for January 2026 but was postponed until the end of April, a three-month delay that exhausted community patience. From the oversubscription controversy in January to the final TGE in late April, buyers faced opaque refund processes, repeated schedule delays, and insufficient information updates. When trading finally began on April 29, the failure to distribute tokens to many presellers triggered a surge of distrust. This sentiment, combined with the immediate selling pressure from other market participants, caused the price to lose control within hours. As of the time of this report, the project team had not issued any official statement addressing the price collapse on April 29 or the issue of undistributed tokens. Woofun AI analysis suggests that without immediate transparency regarding token distribution and insider activity, the project faces a critical risk of permanent loss of community trust and potential regulatory scrutiny.