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Indiegogo cancels its ICO despite Already Having Raised more than $5 Million

The initial coin offering sector has changed a lot ever since it first exploded in popularity near the beginning of 2017. There have been many ups and downs along the way, but there is still being record breaking numbers recorded for the amount of funds being raised through these token sales.

Indiegogo cancels its ICO despite Already Having Raised more than $5 Million August 27, 2018Leave a comment

The initial coin offering sector has changed a lot ever since it first exploded in popularity near the beginning of 2017. There have been many ups and downs along the way, but there is still being record breaking numbers recorded for the amount of funds being raised through these token sales.

They began a legitimate alternative to going after venture capital funding. While in the beginning, it was mainly blockchain related startups which were using token sales as a method of raising funds for their operations, as time went on and the sector became embraced more and more, established companies started stepping into the breach. The likes of Telegram for example raised almost $2 billion at the start of this year as a result of their ICO.

What are the details about Indiegogo shutting down their ICO?

Indiegogo is a fundraising platform in itself which has allowed crowdfunding to get many exciting projects off the ground in the traditional markets. They announced that they would be stepping into the blockchain and cryptocurrency space, but things haven’t gone too well for them ever since. The only positive to apparently come out of this situation is that the investors are going to be able to retrieve their funds from this investment.

It was recently that there was an email sent by MicroVentures, who were the brokerage partner for the ICO in which they told investors that unfortunately there would be no tokens sent to them, but they would be having their investment fully refunded. On the surface, the reason for this looks to be regulatory changes that have come into effect in recent times.

It was in December 2017 that Indiegogo had announced their intentions to hold their own token sale and that they would be implementing the offering of ICOs as part of their crowdfunding platform, which seemed like somewhat of a natural progression given their established place in the market for crowdfunding.

The first ICO was in the form of a fan controlled football league in which $5.2 million was raised. The goal of this project was to create a football league that was operated by the community itself, with tokens going towards the investors and the entire project was to be overseen by MicroVentures.

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