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Failed Initial Coin Offering: Sponsy being sold on eBay – Coinnounce

Failed Initial Coin Offering: Sponsy being sold on eBay

Sponsy, an initial coin offering project that was planning to raise millions is reportedly being sold on eBay, the multinational ecommerce giant. The blockchain project which was developed by Sponsy is now placed on auctions with a starting bid of $60,000.

The project team had a plan for raising millions of dollars through an initial coin offering even though the product still did not have a clear definition or roadmap.

Sponsy Quits:

ZeroHedge reported that the founders of the product seem to have planned to quit and this is the reason why they have now listed their product on eBay. The company had earlier planned an ICO back in 2017.

Ivan Komar, one of the founders of the project explained to the Financial Times that back in 2017, it was quite usual for a product based on blockchain technology to raise millions of dollars due to the ICO hype that was created at that time. However, the team’s law firm gave a suggestion to the team to not seek investment through an initial coin offering until the team was finished developing the product.

Komar also mentioned that hiring the law firm was a mistake for them as the lawyer suggested them not to hold an Initial coin Offering until the product was built and had users. He said that blockchain companies back then were able to raise millions of dollars even though they were not ready with an idea or a product.

Komar also admitted that they should have done an ICO first rather than going for the lawyer’s words. He added that they should have raised as much investment as possible back then and after that started to build a product like most companies back then did. Sponsy waited until the mid of 2018 when they had finished building the product, however, till then the interest of the investors was no longer in the cryptocurrency space.

Sponsy did not need Blockchain:

The founder also admitted that the product did not actually need a blockchain to run. He said that the main business of the project would run in the usual manner without any cryptocurrency or blockchain being implemented into it. The project just needs a centralized server to run and not any blockchain or crypto component.

Komar also mentioned that the amount of $60,000 was quite genuine for their product as according to him, it is at least worth $200,000. The bidding is still live on eBay with three days remaining on the countdown. However, currently, there is not even a single bid on the project until now.

Layla Harding

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