As you all know, I've been a huge fan of Atlas (@AtlasNaaS).
It's with great disappointment that I share some disturbing information.
While the staff/team is great, the founders of the project are horrible.
This is a๐งต taken from an official article released by the team.
It's with great disappointment that I share some disturbing information.
While the staff/team is great, the founders of the project are horrible.
This is a๐งต taken from an official article released by the team.
Everything here was written by Guvnor, and shared with permission from @Dr_Kojipup which sent it to me.
If you rather read the original doc, you can do so here:
@cryptoguvnor/statement-on-atlas-c687b910a8d3" target="_blank" rel="noopener" onclick="event.stopPropagation()">medium.com
If you rather read the original doc, you can do so here:
@cryptoguvnor/statement-on-atlas-c687b910a8d3" target="_blank" rel="noopener" onclick="event.stopPropagation()">medium.com
STATEMENT ON ATLAS
I joined Atlas as project manager on Tuesday 5th April on the understanding that the founders โ identified in this article as Jarod(Campaigner), Noah(Xsych), Cody(Anonymoustitties), and Katre(Veera) - were wanting to take a step back from the protocol.
I joined Atlas as project manager on Tuesday 5th April on the understanding that the founders โ identified in this article as Jarod(Campaigner), Noah(Xsych), Cody(Anonymoustitties), and Katre(Veera) - were wanting to take a step back from the protocol.
With Dr Kojipup stepping into the CEO role, and me bringing my experience to help organise the team and take the protocol forward. Noah and Cody advised that they wanted to focus on their own company and Campaigner advised he wanted to step back due to health issues.
I was soon involved in negotiations between Campaigner, Noah, Cody and Dr. Kojipup in terms of the handover from them to us. I had underestimated what they meant by stepping back.
It became clear they didnโt want to do any work at all for Atlas anymore and wanted a buyout of $400,000. Dr. Kojipup asked if they would accept a 5% royalty instead, and hand over the deployment keys and payroll,
However these terms were rejected and Campaigner advised that they would only accept a minimum of 25% of the founder allocation they were taking from the monthly node fee revenue. I believed that this was unacceptable, and began collecting data to counter their offer.
Unfortunately, in the process of collecting that data and speaking to the non founder team members, I have uncovered disturbing information.
FUNDS ALREADY RECEIVED BY THE FOUNDERS
Monthly Fee Allocation
In the public gitbook, since launch it has shown 30% of the monthly node fees being sent to the treasury. This has never been true, and can be verified by checking the treasury.
Monthly Fee Allocation
In the public gitbook, since launch it has shown 30% of the monthly node fees being sent to the treasury. This has never been true, and can be verified by checking the treasury.
100% of the node fees for the majority of the weeks has been allocated to team salary, with between 49% - 70% being allocated to the founders (it has varied).
Between presale and their weekly allocation from the node fees, Jarod, Noah, Cody and Katre have collectively received $407,588.88.
Team Atlas Token Allocation
1% of the Atlas supply was assigned as vested team allocation. On launch they were allowed to sell these tokens, but the rule was changed to where they needed to be converted to nodes.
1% of the Atlas supply was assigned as vested team allocation. On launch they were allowed to sell these tokens, but the rule was changed to where they needed to be converted to nodes.
Since the beginning they have been dumping their rewards from their nodes, and the collective value of Atlas rewards sold between the four founders is $272,456.71.
To be clear, selling of founder allocation rewards would be acceptable, IF the protocol is being actively worked on and healthy. Unfortunately I do not believe this has been the case.
Total Funds Received
Between presale, weekly node fee allocation, and selling node rewards, the total value the four founders have received comes to $680,045.59. These transactions have been tracked.
FOUNDER FUNDS RECEIVED docs.google.com
Between presale, weekly node fee allocation, and selling node rewards, the total value the four founders have received comes to $680,045.59. These transactions have been tracked.
FOUNDER FUNDS RECEIVED docs.google.com
EMBEZZLEMENT OF ASSETS
During the Atlas launch, an exploit was used to send $35,077.31 worth of Atlas tokens to one of the founders personal wallets. The following is what happened to those funds afterwards.
During the Atlas launch, an exploit was used to send $35,077.31 worth of Atlas tokens to one of the founders personal wallets. The following is what happened to those funds afterwards.
On January 8th, 3000 MIM was sent to AVAX via Uniswap, converted to AVAX, sent to a different wallet, and then sent to what looks like a CEX. Later that day, 10 Atlas tokens were bought.
On January 9th, another 10,005 MIM was sent to AVAX via Uniswap, converted to AVAX, sent to a different wallet, and then sent to what looks like a CEX. The same day, 1,300 WFTM was bought, with 3,100 added to the WFTM-MIM LP.
On January 12th, 21,902 MIM was sent to another wallet, and over January 11th and 12th, was added to the Tomb-FTM LP. None of these funds have been returned to Atlas.
These transactions were spotted by non founder members of the team and raised internally. I have seen screenshots of the conversation, where it was dismissed as an error โ the founder said that he thought he was on the testnet.
During that conversation, he advised that if any of the community spotted the transactions and asked questions, to tell them that the funds were returned.
In a separate conversation later with a different founder, when the team member who raised this was dissatisfied with the explanation, he was threatened with a defamation lawsuit if he released the information to the community.
To be clear, taking assets from a company and placing them in your own possession, then trading them for other assets is embezzlement, in which case even if funds were returned does not remove the guilt of the original crime in American law.
I was advised of this by non founder members of the team, and asked them to track the transactions. You can find a copy of their findings here: TRANSACTIONS docs.google.com
FLUX MEETUP
Three of the founders, and two other members of the team travelled to Miami to attend the Flux meetup from 5th โ 9th April. The two non founder team members have advised that two of the founders refused to talk about Atlas during the trip.
Three of the founders, and two other members of the team travelled to Miami to attend the Flux meetup from 5th โ 9th April. The two non founder team members have advised that two of the founders refused to talk about Atlas during the trip.
Including refusing to strategise on the future of the protocol. The other founder only wanted to talk about the buyout, and his frustration that Dr. Kojipup and myself were not agreeing to it. He also advised that if we didnโt agree to the buyout, they would just let Atlas die.
This is not documented as it was a verbal conversation, however I believe the team member who told me as it fits the pattern that I have uncovered during my investigation.
In terms of the actual Flux meetup, I have been advised that it turned out to just be a 2.5 hour meet and greet where people from many protocols were present, and that nothing was actually discussed in terms of Atlas.
The rest of the five days was spent at gun ranges, the beach, buying food, renting a Mercedes, a Mustang and a Slingshot to drive around. Despite the fact that nothing business related to Atlas was done, the founders allocated themselves an extra $4,000 each in expenses.
LITTLE EVIDENCE OF WORK ACCOMPLISHED DURING THE LAST THREE MONTHS
There is very little evidence that work has been done by the founders for the protocol during the last three months. I believe that any claim of full time working on Atlas can only be a gross exaggeration:
There is very little evidence that work has been done by the founders for the protocol during the last three months. I believe that any claim of full time working on Atlas can only be a gross exaggeration:
Website
There was a new website and dapp launched, however these were basic updates that should not have taken longer than a week. There are also errors on the site that have been pointed out but have never been addressed.
There was a new website and dapp launched, however these were basic updates that should not have taken longer than a week. There are also errors on the site that have been pointed out but have never been addressed.
Flux Migration
The website is hosted on Flux, however the nodes are still hosted on Chainstack. This was not adequately communicated to the community.
The website is hosted on Flux, however the nodes are still hosted on Chainstack. This was not adequately communicated to the community.
NFTโs
Despite months of talk about NFTโs, no tangible work was done to develop them. One of the very recently hired developers completed coding of them in a week, however there is still no plan in place to deploy them.
Despite months of talk about NFTโs, no tangible work was done to develop them. One of the very recently hired developers completed coding of them in a week, however there is still no plan in place to deploy them.
VPS
There is no business or project plan in place, one founder has said he is working on it but as far as I can tell, automation is being done through BASH scripting. This is unfeasible, and I do not believe we are anywhere close to being able to deploy this solution.
There is no business or project plan in place, one founder has said he is working on it but as far as I can tell, automation is being done through BASH scripting. This is unfeasible, and I do not believe we are anywhere close to being able to deploy this solution.
While guaranteeing security and 99.9% uptime (these would be expected industry standards). This founder has also stated his intention to stop working on Atlas.
Fee Exploit
There is an exploit that has been known about for weeks where a node holder can pay whatever amount of FTM they want for the fees. When the new developers were onboarded and spotted it, they raised it and were told that it was known about and being โmonitoredโ.
There is an exploit that has been known about for weeks where a node holder can pay whatever amount of FTM they want for the fees. When the new developers were onboarded and spotted it, they raised it and were told that it was known about and being โmonitoredโ.
The new developers got a fix ready in a short time period. In my opinion, not fixing it once it was first spotted is negligent behaviour exposing the protocol to potential harm.
Treasury
The founders have ignored multiple requests from the team to sell a portion of FTM for profit after a run up which has left it exposed to FTM volatility (back in January and February and then again in the beginning of April).
The founders have ignored multiple requests from the team to sell a portion of FTM for profit after a run up which has left it exposed to FTM volatility (back in January and February and then again in the beginning of April).
The treasury is on a 5/8 multisig, so non founder team members cannot sell without at least one of the founders.
(During some period of time treasury was changed to 3/8 multisig so the tokenomics team was able to compound tshare and participate in bribes but then it was randomly changed back to 5/8 without any communication which made it impossible to sell FTM during the recent pump.)
Treatment of Non-Founder Team Members
I have been given many screenshots and examples of times where non founder members of the team tried to push an idea forward, or questioned the way the project was being run, and were rebuffed.
I have been given many screenshots and examples of times where non founder members of the team tried to push an idea forward, or questioned the way the project was being run, and were rebuffed.
Each team member had to sign an NDA, which included a non compete, and this has stopped members of the team from feeling able to raise any concerns publicly.
The founders are quick to resort to legal terms when communicating, and I believe that they have been gaslighting the rest of the team.
At least one specific threat of a defamation lawsuit was levelled against a non founder team member who was deeply unhappy with how things were internally, and I have a screenshot of that conversation.
Focus on business outside of Atlas
Two of the founders own a company outside of Atlas where they have been focusing their time. Another works for that business.
Two of the founders own a company outside of Atlas where they have been focusing their time. Another works for that business.
The final founder has been setting up his own dropshipping website, of which I have obtained the URL and confirmed. All of this while Atlas has not had a single new feature release.
Blood Nodes Similarities
The new developers having looked at the contracts believe it is highly likely that Atlas was forked from Blood Nodes with some changes and additions to the contract.
The new developers having looked at the contracts believe it is highly likely that Atlas was forked from Blood Nodes with some changes and additions to the contract.
The founders made a point to hide the contract, advising it was because they didnโt want it to be forked. However after finding this out, I believe it may have also been because their claims of the code being written from the ground up are exaggerated.
CONCLUDING STATEMENT
I take no pleasure in concluding that Atlas has more in common with a slow rug than with a functioning protocol where the founders have tried their hardest to make it work.
I take no pleasure in concluding that Atlas has more in common with a slow rug than with a functioning protocol where the founders have tried their hardest to make it work.
During the last week I have spoken to each of the non founder members of the team to collate information. Many team members only had one piece of information, and not another part, so were unaware as to how bad it has been.
We have held a full team meeting that included the discord mods but did not include the founders, and have come to the sad, but unanimous conclusion that we have no choice but to collectively resign.
We do not believe that the founders deserve a penny more than they have already taken, but they are demanding a buyout, or royalties without doing work or handing over the keys.
They have been dumping on the protocol since day one which shows their lack of regard for the health of the protocol. They have embezzled assets and told the team to lie about it. They had a 5 day vacation paid for by the protocol.
They have allowed Atlas, with all of its potential and the best community in this space, to stagnate, with not a single new feature being released since the day of launch.
They have been focusing on their own businesses outside of Atlas. All while paying themselves thousands of dollars a week.
Former team members that are on the treasury multi sig are open to signing transactions that will help the community, such as moving the funds to a third party for distribution.
We plan to send the information we have regarding embezzlement of assets to the appropriate authorities.
Atlas is a registered company and can be found via google search.
Atlas is a registered company and can be found via google search.
For transparency, I have not been paid for my short time as a project manager, and have received 3 free nodes during my time as a mod. I have also not signed an NDA, other than one that was specific to my interview.
Guv
Guv
NAMES OF TEAM MEMBERS RESIGNING
0xFluffyBeard(Developer) Alucard(Community Manager) block5(Tokenomics) Dr. Kojipup(CEO) Fanties Dude(Mod) Guv(Project Manager) kinsyu(Developer) Lazico(Mod) Matvook(Tokenomics) Tuesday(Marketing) vehctor(Developer) VTF(Mod)
0xFluffyBeard(Developer) Alucard(Community Manager) block5(Tokenomics) Dr. Kojipup(CEO) Fanties Dude(Mod) Guv(Project Manager) kinsyu(Developer) Lazico(Mod) Matvook(Tokenomics) Tuesday(Marketing) vehctor(Developer) VTF(Mod)
We as a group can only apologise to investors that we have had to take the time to ensure that the data was correct before releasing this information.
We know this has meant that people have bought into the protocol, however it is only in the last few days that a collective internal investigation has been conducted.
We hoped until the end that things would be different, and didn't want to run the risk of a damaging fud storm without being certain of the above.
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