Spain’s Solar-Powered Mining Firm CryptoSolarTech Will Give Back $68 Million Raised via ICO Model
CryptoSolarTech, a Spanish crypto mining company, has decided to return the $68 million USD that the company was able to raise during its Initial Coin Offering (ICO) back the investors. You read it right, they will give it all back.
A recent picture of an official letter that was sent to investors of the company was posted online recently. It looks like CryptoSolarTech aims to create a cryptocurrency mining facility in Spain that would be powered by solar energy… but the company failed to get a permit.
As the lack of the permit is currently out of the company’s control, they will not be able to deliver on their promises. The founders promise returns within 60 days and it will be impossible for them to comply with this promise.
On the official letter, the company vowed to give the money back to the investors. However, any tokens purchased after February 19 will not be refunded as the company will not be held responsible for them.
The CryptoSolarTech ICO
The ICO happened in June 2018, just around when ICOs were starting to not be seen as something so good anymore. The main reason for the ICO was to give investors an opportunity to help the company to finance its operations and receive profits in a short timespan.
In fact, the project ended up being very successful and it raised $68 million USD in less than two months, even with the falling prices of cryptos at the time. The minimum investment was set to be $900,000 EUR and the company achieved 6,500% more than they originally wanted to.
Unfortunately for the investors, the token was one of the biggest losers of the year and it lost the majority of its value until the end of the year.
CryptoSolarTech even managed to score a partnership with Risen Energy, a Chinese energy company, back then, but the question of lacking the permit made it all go sour and now the company is unable to proceed with its business.
In the end, at least the company will give the funds back to the people who should own them. We all know that this story could be finished in a considerably worst way when we think about all the other companies that failed along the way.
Not all mining companies are so unlucky as CryptoSolarTech. Bitfury, for instance, is set to construct a huge mining company in Paraguay, which will cover more than 200,000 square meters and be supplied by one of the biggest hydroelectric stations in the continent.
The lack of success of companies like CryptoSolarTech is part of the reason why the ICO market is dying out now. According to reports, the amount of ICOs being successful is decreasing steadily when compared to 2018, which means that people are losing trust in them.