Ghost faces backlash for allegedly misleading investors about Ace of AI partnership

Key Takeaways

Phantom faced criticism after Ace of AI announced a partnership, resulting in an investment in ACE.
Clarification by Phantom that it was not an official partnership led to the devaluation of the ACE token.

Phantom, a prominent multi-chain crypto wallet provider, faced criticism after its social interaction with Ace of AI, which many interpreted as a formal partnership between the two projects, caused confusion and losses investors.

On January 9th, Ace of AI on X announced that they were “excited to be working with Phantom” as part of the Phantom embedded early access program. Phantom responded to Ace of AI's tweet with a series of emojis that were interpreted as an official partnership.

The announcement led to an increase in the price of the Ace of AI token, ACE. according to data from GeckoTerminal, the token went up to $0.017 after the news.

Phantom later shot down the idea and clarified in a separate statement that Ace of AI was only using their embedded wallet product and had no partnership or sponsorship. They said they did not know their service would be used to verify any indication.

There is no partnership. @Aceofai just using our embedded wallet product. We do NOT support any token and were not aware that we would be in the habit of doing so.

— Phantom (@phantom) January 9, 2025

ACE's value dropped quickly after Phantom's clarification. Currently, it is trading at around $0.0005, down more than 90% from its initial rally.

Users of X began confronting Phantom and questioning their method of communication. Many investors said they felt cheated by the perceived connection between the two companies and suffered financial losses.

If there is no partnership, why not? @adamdelphantom retweet the 👻🤝‍♠️?

0 apologies or responsibility accepted by @phantom

We are literally getting RUGGED over here because of your incompetence https://t.co/8QAAxUWQ0g

— Psycho (@PsychosCalls) January 9, 2025