Indiegogo Cancels First ICO Due to Regulatory Concerns, Refunds Investors
Last week, crowdfunding giant Indiegogo launched its second-ever initial coin offering (ICO), this time hosting a security token offering (STO) for a luxury resort in Aspen. All the while, though, the company was quietly erasing its first ICO from memory.
That ICO, a utility token offering from the Fan-Controlled Football League (FCFL), had raised more than $5 million in Dec. 2017 to fund the development of an independent football league that crowdsources team management, giving fans control of personnel decisions, logo design, and even play-calling. In addition to surpassing its $5 million funding target, FCFL inked a two-year deal with streaming service Twitch to broadcast games live.
At the time, Indiegogo touted its token vetting process, which it boasted employed the “strictest standards for legal compliance and quality control.”
However, as first reported by The Next Web, Indiegogo token brokerage partner MicroVentures recently sent out an email to the ICO’s contributors, informing them that it had not distributed the funds to the FCFL. Citing regulatory concerns, the company said it had canceled the offering and would issue a full refund.
Source & full article: ccn.com
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