Bearish Market Conditions Leave BlockEx With A Meager £5.5 Million From Its ICO Total

Bearish Market Conditions Leave BlockEx With A Meager £5.5 Million From Its ICO Total

Many of our regular readers may remember that around a year back, blockchain startup BlockEx seemed destined to dominate the digital asset market after the London-based firm was able to raise a whopping $24 million during its pre-sale event. However, this was over a year back (in January 2018) when the crypto market as a whole was witnessing a massive surge in its overall growth.

More On The Matter

As per an economic status report released by BlockEx a couple of days back, CEO Adam Leonard has revealed that a consortium of token buyers that had initially committed to pumping in more than £9 million into the firm’s financial vaults had failed to deliver on their promise (owing to sluggish market conditions).

The report also states that a majority of BlockEx’s raised funds have primarily come from the following sources:

  • Accredited individual investors
  • Cryptocurrency hedge funds
  • Family offices
  • Institutional players focused on equity purchases.

Also, it is worth noting that a majority of BlockEx’s funds have been maintained by the firm in the form of digital tokens and altcoins. However, following the collapse of the global altcoin sector last year, it appears as though the company has lost around £4.3 million of its overall savings. In the report, a spokesperson for BlockEx has also gone on to state that a part of these above mentioned losses were incurred due to fluctuations in the exchange rate of the EUR/GBP pair.

“So in reality, out of the £20 million of funds raised, we were actually left with just £5.5 million of available funds for the business on a go forward basis.”

Leonard Remains Upbeat About The Future Of His Company

After the folks over at BlockEx found out that many of their initial supporters were slowly starting to back out from their financial commitments, the firm started seeking out the help of additional investors. However, in the face of all these challenges, company CEO Adam Leonard has remained surprisingly upbeat.

As part of his sales pitch and overall market strategy, Leonard has been telling prospective investors that his company’s offering “remains robust despite its massive financial downturn”.

For those not aware, BlockEx offers clients with a platform that has been designed to “manage the entire lifecycle of blockchain based digital assets, including origination, issuance, exchange, settlement, and redemption,”.

Final Take

BlockEx is not the only major blockchain firm to have run into massive financial trouble over the past 8-12 months since last year’s market slide has forced a whole host of crypto companies to either disappear completely or remain a shadow of their former selves. In this regard, BlockEX has been quite lucky since the firm has not had to lay off a majority of its employees to break even and stay economically afloat in this insanely competitive market.

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