After ICO Fails, Founder Turns To eBay To Find A Willing Buyer To Take It Over
Initial coin offerings (ICOs) are one of the simplest ways that the cryptocurrency world opens the doors to new exchanges and tokens, hoping for the funding and support of future investors. ICOs typically allow consumers to purchase digital assets at a discounted rate from what they aim to be listed for online. However, as the regulatory space in the world evolves, ICOs are not as successful as a fundraising model as they were before.
Founder Ivan Komar of startup “Sponsy” found himself in a similar predicament. The blockchain project ultimately had planned to issue both an ICO and a security token offering (STO), considering that the latter has grown in popularity recently. The founder has stated that his project was approved by investment bankers, and he’d even had it audited by an investment firm, complying with both EU and US regulations.
However, the founder did not stop there. Sponsy has already created a “solid social presence,” which involves 10,000 likes on Facebook with 8,000 Twitter subscribers, though the latter has only seen twice a month recently, ever since the company had said that they would be hosting a token sale in December. After December came and went, there was no token sale of any kind.
The Financial Times reached out to Komar to find out what the problem was with the ICO. Apparently, Komar believed that the 2017 hype surrounding the concept of ICOs had come and gone, and he said that there was no additional interest was found in the project this year. Still, that has not stopped him from making headlines with his offer to the public to purchase the project in its entirety on eBay, an e-commerce website that allows an individual to sell almost anything.
Komar seems to have faith that this project can sell to someone else that wants to try their hand, especially because the cryptocurrency aspect can be removed, leaving the infrastructure of the exchange. However, he added that the idea that they had “approval” at an institutional level had been a little embellished, clarifying that a law firm in the UK had audited the project and given it a high ranking with low risk.
Presently, according to reports from The Block and other publications, the listing offers the entire project for $60,000.