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Infrared Finance Faces Backlash after its $IR token plunged post-launch, reigniting debate over VC-heavy tokenomics and low user allocation.
Author: Akshat Thakur
Published On: Mon, 05 Jan 2026 16:21:44 GMT
January 5, 2026 — Infrared Finance Faces Backlash following a sharp post-launch decline in its $IR token, as critics point to heavily imbalanced tokenomics and minimal user allocation. The episode has intensified debate around VC-heavy launches and insider-favoring distributions in DeFi.
Infrared Finance is a liquid staking protocol built on the Berachain ecosystem, designed around a “Proof of Liquidity” model. The protocol allows users to stake assets such as BERA while retaining liquidity. However, as Infrared Finance Faces Scrutiny, attention has shifted away from product mechanics toward token distribution.
The $IR token launched on December 17, 2025, at an estimated $220 million fully diluted valuation. Almost immediately, community criticism emerged over allocation fairness. That criticism has since been reflected in market performance.
The core controversy centers on Infrared’s token allocation. According to widely circulated breakdowns, approximately 97% of the total supply was reserved for the team, venture capital investors, centralized exchanges, and market makers. Only 3% was allocated to users. Critics argued that such a structure left retail participants exposed to dilution and sell pressure.
As Infrared Finance Faces Backlash , many framed the setup as positioning users as exit liquidity. These concerns dominated early discussions surrounding the launch and continue to shape sentiment.
The controversy gained momentum through a viral post by crypto commentator CBB on December 17, 2025, the day of the token’s launch. The post criticized Infrared’s allocation structure and warned retail buyers against entering at high valuations. Subsequent updates tracked the token’s decline, reinforcing the narrative of insider-heavy tokenomics.
Replies echoed frustration over perceived greed and predicted further sell-offs. As Infrared Finance Faces Backlash, the episode highlights how social media can rapidly shape market perception. The thread has since become a reference point in discussions around predatory token design.
Market data following launch has amplified criticism. As of January 5, 2026, $IR trades near $0.067, down more than 80% from its post-launch high of approximately $0.35. The token’s market capitalization sits near $13.7 million, with an FDV around $66.8 million based on a circulating supply of roughly 205 million out of 1 billion tokens.
Weekly performance shows a decline of about 46%, underperforming broader market benchmarks. Analysts cite unlock pressure, low community allocation, and fragile confidence as key drivers. The price action has reinforced why Infrared Finance Faces Scrutiny among market participants.
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