Indiegogo’s first attempt to integrate themselves into the blockchain world has seemed to fail but at least investors of the ICO will get their money back. From an email sent out in July Indiegogo’s token brokerage partner, MicroVentures, informed investors they will not be receiving tokens but rather refunds.
A copy of the message can be read below:
Thank you for participating in the FCFL pre-sale. If you have been following the crypto and ICO markets for the last 6 months you already know that the regulatory environment has been rapidly changing. The SEC has provided multiple comments regarding security and utility tokens, but has not provided formal guidance or a compliant framework on how to conduct these offerings.
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.
We are beginning the return process today.You may hear from someone on our team if we need to verify return instructions on how to return your investment capital to you.
Indiegogo’s $5.2 million ICO was focused around a Fan Controlled Football League (FCPL). The announcement of such a league gained attention from Fortune, CNBC, CoinDesk, TechCrunch, and the New York Times.
FCFL originally boasted about achieving higher funding than expected with the $5.2 million ICO but out of nowhere MicroVentures informed investors about refunds before even consulting the FCFL. FCFL CEO Sohrob Farudi even stated,
We did not consent to that email being sent out. We have no way to communicate directly with the purchasers who participated in our presale [sic] on MicroVentures platform as MicroVentures has refused to give us any information about who the purchasers are in order for us to communicate with them.
Indiegogo is not the first company to backpedal on schedule but hopefully the highly anticipated FCFL will be able to still make an appearance.