One of many first firms to host a token sale, Factom, has notified collectors that it has entered receivership after an attraction for added funding fell on deaf ears.
“[FastForward] has been notified by the administrators of Factom that in a board assembly on 31 March 2020 they concluded that, within the absence of additional funding, they now wanted to start the method of project of property for the good thing about collectors,” reads the assertion.
Though Factom’s Twitter web page had fallen silent in the course of January, alarm bells began ringing in March after the corporate instructed buyers it might enter liquidation by the tip of the month except it obtained extra funding.
FastForward, which had the most important stake in Factom, mentioned it was ready to renegotiate its $6 million easy settlement for future fairness (SAFE) to attempt to entice outdoors funding. Though it was keen to take part in one other funding spherical, FastForward instructed Factom administrators that it was not ready to guide. Beforehand introduced talks with buyers had been additionally unsuccessful.
Following a board assembly on March 31, Factom lastly instructed buyers it might start the method of liquidation. As its greatest investor, FastForward is now receiver and can take the lion’s share of the corporate’s property and mental property. A timetable for when Factom will ultimately be wound up has not been disclosed.
Simply final 12 months, Factom mentioned it was collaborating in a trial by the U.S. Power Division to make use of blockchain know-how to guard the nation’s energy grid. The corporate additionally launched its personal ‘PegNet’ stablecoin community.
FastForward, which is listed on the London Inventory Trade and has invested in a various vary of tech startups, entered right into a $6 million SAFE with Factom in 2018. In its near-six 12 months historical past, Factom raised greater than $18 million from buyers.
In an announcement, FastForward director Ed McDermott admitted they weren’t altogether sure how Factom led to such dire monetary straits.
“We’re extraordinarily upset with this information from Factom,” he mentioned in a press release. “As we undergo the Receivership course of and perceive extra of the occasions that led to this place our place as buyers in Factom is expressly reserved.”
Fintech Zoom approached each Factom and FastForward for added remark,however didn’t hear again by press time.
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