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New Twist in ParaSpace Drama as Co-Founder Resigns

2 mins
Updated by Geraint Price
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In Brief

  • ParaSpace co-founder Jay Yao resigned from the protocol.
  • He, along with around 19 team members, accused the CEO of stealing users' funds.
  • Frustrated users are complaining about the amount lost in gas fees.
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ParaSpace NFT co-founder Jay Yao has resigned after a feud with chief executive officer (CEO) Yubo Ruan. But the controversy has left the community frustrated over the cost of gas fees.

The co-founders of the non-fungible token (NFT) protocol, ParaSpace, had a bitter exchange of tweets on May 10. At last, they seem to have come to a resolution, with Yao resigning and Ruan gaining control of their Twitter handle and multi-sig wallet.

Departure of Yao

Today, Yao tweeted that he and several other team members are resigning from ParaSpace.

He wrote:

I wanted to take a moment to apologize to the community for how our internal matters affected our users – this was never intended to be a public matter, and it should have been resolved internally. I’m sorry that it wasn’t.

On Thursday, he updated on Twitter that a resolution has been reached with Ruan, and as a part of the resolution, he would have to depart from the project

Some of the main conditions of the resolutions are:

  1. Ruan and other team members, including Yao, must issue a public apology for the controversy which saw Ruan accused of stealing users’ funds.
  2. Yao and Thomas Schmidt will get co-founder recognition even after they depart from the platform.
  3. Access to the ParaSpace NFT Twitter account would be given to a manager appointed by Ruan.
  4. Ruan would dictate all the slots of the multi-sig wallet.

While Yao has issued a public apology, Ruan is yet to apologize. But, Ruan tweeted a video that he is working on reorganizing the internal team and bringing more transparency to the community.

Also, he is onboarding new staff for marketing and business development teams.

ParaSpace Community Held Hostages?

While Yao and Schmidt addressed themselves as co-founders, Ruan clarified on May 10 that they were consultants. Now, according to the resolution, Ruan would have to recognize them as co-founders.

The frustrated community members alleged that Yao and Schmidt held the community and the team hostage for the co-founder title. They wrote:

“The conditions set by the two gentlemen show everyone that for the two gentlemen it was always about personal gain and never about the community.

They actually took everyone – the team and the community – hostage to get the “co-founder” title…”

Due to the controversy, the community withdraw their assets from the project. And, as a result, had to pay hefty gas fees.

A ParaSpace user wrote:

“What about the gas fee when we withdraw from ParaSpace for emergency safety? Most of the gas vanished. Sorry is easy to say, but real damage occurred. You made us pay for your mistake and post an elegant apology here?

An apology is NOT accepted unless someone takes responsibility for our losses. I am not with any side, just one of the hundreds of users who got burned in the crossfire.”

The controversy was ignited when Yao and Schmidt wrote an open letter along with 19 team members accusing Ruan of stealing users’ funds. 

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...