The crypto world is no stranger to fast-paced innovations and staggering fundraising events. But even by these standards, raising $30 million in just 30 minutes is an extraordinary feat. This is exactly what happened with Dexter’s GM.ai project, an event that captured the attention of investors and developers alike. However, along with its meteoric rise came whispers of controversy, questions about legitimacy, and ethical concerns.

This article delves into the history and details Em behind GM.ai and the controversies that have surfaced since.

Editor’s note: The claims in this story belong to the author. The author is not affiliated with HackerNoon staff and wrote this story on their own. The HackerNoon editorial team has only verified the story for grammatical accuracy and does not condone/condemn any of the claims contained herein. #DYOR

A Fast Start: $30M in 30 Minutes

The story starts with a supposedly anonymous group of developers, operating under the alias "@dexter_cap" on twitter. In a matter of minutes, they raised $30 million for their decentralized AI project, GM.ai, which promised to revolutionize the Solana trading experience by combining AI with DeFi (decentralized finance) for automated, permissionless interactions.

The GM.ai project created a frenzy, attracting crypto investors eager to be part of the next big innovation. The idea of AI-driven market strategies in the world of decentralized finance was tantalizing, offering a fresh way to automate and potentially dominate the market. Early backers believed they were getting in on a technology that could offer unparalleled returns.

However, some have raised eyebrows at how the project was able to raise such a large sum in such a short time, especially considering the team’s anonymity. This lack of transparency has fueled speculation about the legitimacy and long-term potential of the project, but the money speaks for itself, and GM.ai has made a massive entry into the crypto space.

Early Success with LootBot and Whales Market

The project's hyped fundraise can be traced back to LootBot and Whales Market, two sub projects that helped establish credibility for the Dexter-led initiative.

LootBot, an automated airdrop-farming bot, has achieved significant success in the blockchain space. With integrations across 8 blockchains and a total of 6 airdrops received, it has generated over $2 million in airdropped value (excluding $WHALES). LootBot boasts more than 112,000 lifetime active wallets, with a total looting volume exceeding $71 million and gas fees amounting to 495 ETH. The bot has garnered media attention, including mentions in Binance Research.

Besides, Whales Market has established itself as the ultimate OTC decentralized exchange (DEX) for trading airdrop allocations, points, and tokens. The platform has processed a total volume of $182 million, attracting over 33,000 users and facilitating the creation of 100,538 orders. With platform fees exceeding $2 million, Whales Market has provided significant value to its community (according to Dune Analysis). The $WHALES token surged from an initial price of $0.0075 to a peak of $4, delivering a remarkable over x500 return for investors. Notably, 60% of the platform’s revenue, amounting to over $1.2 million, has been distributed to $WHALES token holders.

These two projects helped bolster the early reputation of Dexter’s team and subsequently lead to the famous presale - 150,000 SOL raised in under 30 minutes. Needless to say, investors saw the previous capabilities and work ethics of the team, and chose to place their trust in them for the third time.

The Months Following: Uncertainty Looms

Shortly after the whirlwind presale conclusion, Dexter finally stepped forward to unveil key details about the highly-anticipated project. GM.ai, the name behind the cryptic presale, was officially introduced to the public. Along with the name, Dexter revealed critical information about the project’s vision, outlining how the fusion of AI and blockchain would create a game-changing ecosystem on Solana.

However, there was one glaring omission that immediately caused concern: the launch date.

Despite the hype surrounding GM.ai and the substantial funds raised, Dexter did not provide a concrete timeline for when the platform would go live. While the roadmap showed a detailed path forward, the absence of a specific launch date began to sow seeds of doubt among early presale investors.

Many had expected that a project that raised $30 million in mere minutes would already be far along in development. The lack of a clear timeline triggered uncertainty. Whispers of concern began to circulate in various crypto communities, with some speculating whether the project might be more ambitious in theory than in practice. Could it be that GM.ai was still in its conceptual stage, with little more than a vision and a few proofs of concept?

Over the next few months, Dexter and his anonymous team remained committed to delivering on their ambitious vision. In 5 months, they showed promising attempts to build an ecosystem of AI-powered products, introducing a suite of decentralized tools aimed at different facets of the crypto space. Key projects like AnotherUs.ai, Intent.trade, and gm.fun emerged, each with its own unique focus.

As the months rolled on, investors continued to wait for GM.ai's official launch date, but the ecosystem’s expansion provided a glimpse of what might be coming. At the same time, the Dexter twitter account started tweeting less, leaving investors confused.

The Disaster Launch

After months of anticipation, GM.ai's long-awaited launch finally occurred on August 14th, but it quickly turned into a nightmare for presale investors. Without going into too much detail, the launch was far from the groundbreaking success that had been envisioned.

At the heart of the disappointment was the decision to add only $2 million in liquidity—a stark contrast to the $30 million raised in the presale. This low liquidity meant that trading the token was difficult, and price volatility was extreme right from the start. Early investors who hoped for quick returns were hit hard as the token price began to plummet almost immediately after trading opened. Adding fuel to the fire was the 6% tax imposed on every transaction, which further discouraged trading activity and frustrated investors. The tax, intended to thicken the liquidity pool, was seen as an additional barrier in an already struggling launch.

From the moment trading began, the token entered down-only mode, with prices continuing to slide day after day. Confidence among early backers eroded as it became clear that the project had misstepped in its handling of the launch, and investors began to sell off their tokens en masse, exacerbating the downward spiral.

The Aftermath

As the fallout from GM.ai's disastrous launch grew, so did the concerns surrounding the future of the project. Dexter, the anonymous leader behind the project, went silent once again. Investors were left in the dark, unsure whether Dexter was hard at work behind the scenes trying to salvage the project or considering cutting his losses and running with the remaining funds. The absence of communication only fueled fears of an impending rug pull, as rumors began to swirl across online crypto forums.

Despite Dexter’s disappearance, GM.ai’s official Twitter account continued to operate. It became clear that while the core project had faltered, the team—or whoever was still running the account—hadn’t given up entirely. In an attempt to shift focus and regain some positive momentum, the Twitter account began promoting GM.fun, one of the ecosystem’s experimental meme-launching platforms. Until now, the platform has gained minimal traction.

Conclusion

The GM.ai presale was hyped for good reasons. The allure of the next big AI x Crypto project, combined with the early success of the teams behind LootBot and Whales Market, fueled investor optimism. However, the project's potential was quickly undermined by a series of critical mistakes.

Mismanagement plagued the project from the beginning, starting with the decision to add only $2 million in liquidity, which led to extreme volatility and a plummeting token price. The introduction of a 6% transaction tax further discouraged trading, making the ecosystem less attractive to investors.

Miscommunication also played a major role in the project’s downfall. Dexter’s repeated silence, lack of transparency, and failure to set clear timelines eroded trust among early backers. When the launch failed to deliver, the absence of leadership left investors feeling abandoned, and attempts to redirect attention to gm.fun were seen as distractions rather than solutions.

In the end, GM.ai’s hype and ambition couldn’t overcome the fundamental issues of poor execution and inadequate communication, leaving it as a cautionary tale in the volatile world of crypto projects.

This story was distributed as a release by ZEX MEDIA under HackerNoon’s Brand As An Author Program. Learn more about the program here.