On Feb. 8, Waltonchain posted a contest to Medium with the goal of spreading awareness about the platform. If you followed the @Waltonchain Twitter account, quote retweeted a specific tweet, dropped #WaltonchainLove in your comment, and tagged someone, then you were eligible to share 564.96 Walton Coins (WTC) with 213 other people.
One WTC was worth around $28.10 when this contest was taking place. In less than 24 hours after the contest had ended one WTC was only worth around $14.62. Waltonchain had lost a total of $242 million in market cap. This is the story behind one of the most expensive tweets in history.
The problem started when the official Waltonchain Twitter account decided to announce the contest winners on Feb. 28. What happened next was, really, really dumb.
*Please guard against scams accounts asking for tokens.https://t.co/CLbMtDhZwI
— Waltonchain (@Waltonchain) February 28, 2018
Someone from that same Twitter account tweeted out a message that read like it was just a lucky Joe excited about winning the contest. The tweet was quickly deleted, but it was already too late, the damage had been done. People started posting screenshots to Reddit and Twitter calling the contest rigged, the company a scam, and a massive sell off soon followed.
— Ayesha Khan (@blockchain_ash) February 28, 2018
— Crypto Rick Ross (@CryptoRozay) February 28, 2018
Two weeks later Waltonchain thought it was smart idea to announce a “partnership” with Alibaba to try to recover the price of WTC after their Twitter fiasco. People started FOMOing into buying WTC after the “huge Alibaba announcement”, but the celebration was short lived after Alibaba stepped in forcing WTC to release a tweet denying the partnership, Waltonchain quickly deleted the announcement tweet and released a really vague apology tweet.
Due to the current uncertainty of blockchain policies, our team has decided that in the future we will announce major partnerships depending on the situation so as not to affect the real implementation of blockchain technology. #Waltonchain $wtc
— Waltonchain (@Waltonchain) March 7, 2018
Waltonchain had faked a twitter contest and a partnership with Alibaba all in the span of 2 weeks, a truly remarkable feat. #scam