Infinex admits to "messing up" fundraising; can switching to a fair distribution mechanism turn things around?

Infinex’s token sale raised only about $600,000 in three days, far below the $5 million target. After the funding slowdown, the non-custodial DeFi trading platform’s team did not push hard but openly admitted to a mechanism design flaw, announcing the abandonment of the original quota model and switching to a “max-min fair distribution” mechanism. Behind these series of changes reflects a rethinking by project teams of user demand in the current crypto financing environment.

Why is the funding so cold

Infinex’s funding dilemma did not appear suddenly. According to the initial plan, the project aimed to complete $5 million in three days, with a single wallet participation limit of $2,500, trying to find a balance between retail investors and large funds. The logic seemed clear, but market response was very lukewarm.

According to the latest news, in just under 30 hours since launch, only $490,000 was raised, and after three days, it reached only about $600,000, less than 12% of the goal. What does this huge gap indicate?

The Infinex team provided the answer themselves. In their official statement, they candidly admitted: retail users dislike lock-up periods, whales are dissatisfied with quota limits, and everyone is annoyed by complex rules. Trying to cater to different groups simultaneously instead weakens overall participation willingness. Such honest self-criticism is uncommon in crypto projects.

Can the new mechanism turn the tide

Infinex announced adjustments involving three key aspects:

The most significant change is removing the single wallet limit and replacing it with the so-called “watered fair distribution.” Under this new mechanism, all participants’ subscription amounts will grow in sync until the total quota is sold out, with excess amounts refunded. It sounds more flexible and easier to understand.

However, the lock-up period remains at one year. This is an interesting contradiction. The Infinex team stated that the lock-up mechanism helps foster long-term user consensus, but if retail investors are already reluctant to participate because of lock-up periods, will this insistence continue to dampen enthusiasm?

The founder’s attitude is crucial

It is worth noting that Kain Warwick, founder of Synthetix and Infinex, publicly stated that if necessary, he would continue to support the project out of his own pocket during the funding difficulties. He also mentioned that he had been funding operations himself for the first 18 months. This attitude demonstrates the founder’s confidence in the project and reflects his genuine understanding of market reactions.

From another perspective, Infinex previously completed $67 million in funding in 2024. This time, the public sale only requires $5 million, which is not a particularly high target. The reason for the funding slowdown may not be that the project itself is not well regarded, but that the sale mechanism indeed has issues.

What to watch for next

After the new mechanism was announced, whether the market can reignite interest remains to be seen. From available information, the community’s attitude toward Infinex is relatively cautious—some pointed out that the project, having already completed large-scale funding, is still frequently changing rules during the public sale phase, which could weaken market trust.

Another point to watch is that Infinex emphasizes a fully self-custodied DeFi trading platform integrating cross-chain bridges, swaps, and trading. This positioning itself has certain market demand, but the project team previously failed to fully explain this to the market. Along with mechanism adjustments, better articulating the product’s value could be helpful.

Summary

Infinex’s funding dilemma reflects a reality: in the crypto market, good funding mechanism design and thorough market communication are equally important. The project’s honest attitude and quick adjustments are commendable, but whether the new mechanism can truly attract funds depends on subsequent market reactions. Moving from $600,000 to $5 million requires more confirmation of the product’s intrinsic value rather than just mechanism tweaks.