Last week, Indiegogo – a crowdfunding giant- launched its first STO (security token offering) for a luxurious resort in Aspen, while at the same time discretely deleting its first ICO.
That initial coin offering – a utility token offering from the FCFL (Fan-Controlled Football League – had raised more than $5 million in Dec. 2017 to finance the development of an autonomous football league that crowdsources team administration, giving fans huge control of workforces brought in, pronouncements, logo design, and also play-calling. To add to its $5 million funding target, FCFL signed a two-year deal with Twitch, a streaming service to air games live.
At the time, the crowdfunding giant Indiegogo hyped its token vetting procedure, which it bragged employed the “strictest criteria for quality control and legal compliance.”
Meanwhile, MicroVentures, a token brokerage partner of Indiegogo has recently communicated to the ICO’s donors via email that it had not allocated the funds to the Fan-Controlled Football League. Citing regulatory concerns, the firm said it had canceled the offering and would offer a full refund. According to the letter, “During this time, your investment was not distributed to the company. This was done to ensure that MicroVentures navigated through the regulatory climate prior to finalizing the offering. While we believe the initial path taken was compliant, we have decided the best way to ensure compliance is to unwind the investment opportunity and return investor capital.”
Indiegogo has supposedly canceled and reimbursed its first ICO
Based on an FCFL statement quoted by TNW, “The refund was issued without the company’s approval and the FCFL had not been “given a valid reason as to why MicroVentures cannot complete the offering.”
Earlier in the month of August, the FCFL circulated a blog post affirming that it has decided to stay its public ICO until the firm has released a fully-efficient platform to prove to regulators that its tokens actually have utility and aren’t hypothetical investments.