Crowdfunding platform Indiegogo has canceled the first ICO hosted on the platform with investors set to receive their money back. The ICO in question is called Fan-Controlled Football League (FCFL) and it’s FAN token. The start-up set a $5 million cap which was exceeded rather swiftly as users were eager to see the phantasy football league come alive. The idea behind the ICO was to create a scenario where users would decide on team roosters, logo designs, league format and schedule. FCFL has even signed a two year deal with the Twitch streaming service to broadcast the games.
It was reported The Next Web that those who invested in the ICO received letters from the platform’s partner - MicroVentures. In it, they were informed that the money was not cleared for use due to regulatory concerns and therefore it will be returned. A public ICO would not be held any time before the FCFL platform is launched, as the team said:
“After many, many hours spent with our legal counsel and advisors we decided that the best course of action was to delay our FAN Token generation event (TGE) until the launch of a fully completed FCFL platform with which the FAN Tokens can interact with utility function.”
WHY IS IT IMPORTANT?
1) FCFL said that they disagree with MicroVentures decision and they have not received any clarification for why the money was not transferred. Earlier, the team expressed they are committed to developing the platform.
2) Recently, Indiegogo announced the start of another ICO, where users would be able to invest in a hotel - St. Regis Resort Aspen. That announcement was followed by a statement that the previous project is over and was successful