Phantom has faced backlash over claims it misled investors in its AceofAI partnership.

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Phantom has faced criticism since AceofAI announced a partnership to invest in $ACE. The price of the $ACE token dropped due to Phantom's clarification that it was not an official partnership.

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Fantom, a popular multi-chain crypto wallet provider, has faced criticism after its social relationship with AceofAI, which many interpreted as a formal partnership between the two projects, leading to confusion and investor losses.

On January 9, AceofAI announced at X that they are “thrilled to partner with Phantom” as part of the Phantom Embedded Early Access program. Phantom responded to AceofAI's Twitter with a series of emojis interpreted as an official partnership.

The announcement caused the price of AceofAI's token ACE to rise. According to data from GeckoTerminal, this news rocketed to $0.017 after the news.

Phantom later retracted the comment and clarified in a separate statement that they were only using their wallet product, which included AceofAI, and that there was no affiliation or endorsement. They said they were unaware that their service was used to validate any tokens.

No partnership. @Aceofai is using our embedded wallet product. We don't accept any tokens and didn't know we were using them to do this.

— Phantom (@phantom) January 9, 2025

After Phantom's clarification, ACE's price plummeted. Currently, it is trading around $0.0005, down more than 90% from its initial rally.

Users on X began to face the Phantom and question their approach to communication. Many investors said that the relationship between the two companies had gone wrong and that they had suffered financial losses.

Why did @adamdelphantom 👻🤝♠️ retweet if there is no partnership?

Taken by @phantom 0 apology or responsibility

We are literally going this far because of your incompetence.

— Psycho (@PsychosCalls) January 9, 2025

Phantom takes everyone off the charts by $400k pic.twitter.com/m8nqz4sA5a

— lynk (@lynk0x) January 9, 2025

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