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ICOs That failedBy Abhishek Singh | May 7, 2018, 2:38 p.m. GMT
I had spoken earlier about why ICOs fail and now I plan to talk about the top failed ICOs. Close to 57% of ICOs face dire failure in one way or the other but one of the main ways to go is through hacking. If a hacker hacks an ICO site, it is considered a failure of the ICO.
The top 4 ICO failures of the day are:
Slot N Slot
The DAO is a human-less venture capital firm that allows investors to make all the decisions through smart contracts. When the attack occurred, the DAO had raised around $150 million and was considered to be the biggest crowdfunding effort in Blockchain history. However, on June 17th a hacker started draining funds from the contract by taking advantage of a loophole in the DAO code. While the core developers who designed and run Ethereumweren’t really involved with the DAO, they were in the firing line when the hacker hit. However, they were able to stop the theft and move the funds to a safer smart contract.
Unfortunately, by then the hacker had already amassed around $50 million and to reverse the attack, the Ethereum community unilaterally decided to hard fork the Ethereum network. By hard forking the network, the state of the network was reverted to the previous day and transactions were rolled back.
Though the hard fork was performed for genuine reasons, it goes against the true spirit of decentralization. This resulted in resistance against hard fork and some miners decided to keep mining on the original chain, which further ended up creating Ethereum Classic. This is why the case is pushed to the top of the list of failed ICOs.
Tezos is a platform Blockchain like Ethereum and EOS, however, the difference between Ethereum and Tezos is that Tezos has an on-chain governance which helps it to upgrade without going through a hard-fork for a smooth evolution. The Tezos ICO happened on July 2017 and it was the most successful ICO of the previous year where it bagged close to $ 232 million.
However, everything was not as good as it seemed. According to a Reuters special report,“There is“a battle of control behind the scenes”. The founding members of the Tezos project, Arthur and Kathleen are in a dispute against the president of a Swiss foundation which was established to handle the coin offering and develop the Tezos computer network. Because of this dispute and panic. The prices of Tezos declined very much after the ICO.
There is no guarantee of what will happen next and how much cryptos will the participants will get, under the terms of Tezos coin offering which is “may be abandoned”. The product cannot be blamed since it is the fault of the members who were implementing it. Therefore, Tezos has not been listed on exchanges.”
Slot N Slot
Slot N Slot was a gambling platform which aimed to provide trustless, autonomous, and everlasting gambling at a very low operational cost. Using Slot N Slot, anyone could have made or played slot machines.
The team developed a Beta version and were facing some major issues. So, they decided to postpone the ICO indefinitely so as to avoid impacting their investors. In their announcement, they said “Along with the progress of the project, we’ve believed that doing the crowdsale (ICO) is a part of validating the product, so we planned and progressed with the ICO in mind. However, we were not prepared with a detailed long-term plan for the project and its use of the funds raised so that investors could be satisfied and agree with. While designing and developing the structure of the platform, there seemed to be lots of difficulties and obstacles to make it fully autonomous, which made it much burdensome to stay anonymous. At the current stage, we lack the confidence that the project can be a success, and enforcing the crowdsale in such conditions is an irresponsible decision. For this reason, we are retracting the crowdsale (ICO) for the project.”
Veredictum was an anti-piracy and distribution platform for the film industry. It aimed to target all entities involved in piracy. People would have to simply upload their content, certify ownership, put terms and conditions, and schedule the distribution. Veredictum was proposing a decentralized solution to protect the content and building a community of people who were victims of piracy. It was a good project that failed as it did not achieve its ICO goals. So, they had to return the investment people made in the ICO.
In their statement, they said “The crowdsale, has, however, opened up so many doors for us with new potential clients who have seen what we are doing and are excited by our ambition to solve a major global problem for the whole creative space. As a result, we will be working with these great new contacts to develop market products that are focused deeply on solving the problem that just isn’t going away.”