Cofound platform developers are closing down the crowdfunding site. The project team explained its decision by the unsatisfactory situation on the ICO market. The blog post says that the platform’s original goal was to create an alternative venture ecosystem with the help of crowdfunding. But the industry is moving in a different direction. The developers explain they built the system based on democracy and transparency principles. In November 2017 the SEED program has been launched that allowed everyone to join the initial stages of funding. The blog post says that at that time, all the influence was already concentrated in the hands of professional investors and companies that advertised the ICO. After the launch of the SEED program, the project team realized “that the “community” at the core of the crowdfunding concept disappeared”.
The statement says that the current level of technology development does not meet the expectations of ICO investors, and many promises of blockchain projects will not be realized.
“Instead of waiting for the market to turn around, we have decided to opt for creative destruction, wind Cofound.it down and distribute the assets to the token holders", it says.
ICONOMY blockchain project launched Cofound in the spring of 2017. Even during the preseason, the project managed to raise $12.5 million.
It was planned that the platform would advise on promising projects and prepare them for crowd sales.
WHY IS IT IMPORTANT?
- A week ago, the platform suspended the trading of CFI tokens. The distribution of assets to coin holders will be reported in the near future.
- The company's blog says that the market will take a very long time to recover. Nevertheless, they recognize that there is a number of projects that developed prototypes of innovative products. The platform team is sure that the current state of infrastructure is not suitable for launching such services.
- Recently the Autonomous Research study has come to a conclusion that the ICO fundings have dropped to the lowest level in 16 months. In August, they raised $326 million, which was the smallest amount in the last 16 months.