News Blockchain startup Zwoop collapses following cancellation of ICO

Blockchain startup Zwoop collapses following cancellation of ICO

-

- Advertisment -

Blockchain startup Zwoop collapses following cancellation of ICO

VC-backed cryptocurrency startup Zwoop has gone into administration.

According to an exclusive report by The Telegraph’s James Cook, the company’s board of directors filed for administration at the end of November last year.

As a result, employees and suppliers from all over the world have been left with unpaid wages and bills, according to sources.

Zwoop, founded by Italian entrepreneur Alessandro Gadotti, raised $13 million from Robert Friedland, an American-Canadian billionaire and mining tycoon. Friedland is also the founder of Ivanhoe Capital Corporation (a key stakeholder in Zwoop) and Ivanhoe Mines, a Canadian public company listed on the New York NASDAQ and Toronto stock exchanges.

According to its LinkedIn page, Zwoop was developing a “revolutionary, e-commerce assistant that will transform how the world shops online.” It sought to leverage blockchain technology, artificial intelligence, deep machine learning, computer vision, and natural language processing to help consumers find the best possible prices.

The company reportedly employed 56 people spread out across London, Singapore, and Hong Kong.

According to sources, the startup’s collapse is thought to have resulted in unpaid bills totaling several hundred thousands pounds.

Specifically, one London-based marketing agency is thought to be owed $53,858 (£42,000), while a public relations firm has been left with an unpaid bill of $38,470 (£30,000).

A canceled ICO

Like many startups in the cryptocurrency space, Zwoop announced plans to launch an initial coin offering (ICO) in early August. At the time, the company said in a tweet that the pre-sale would be going live on August 28th with the public sale scheduled to take place on September 25th.

A week before the ICO was due to go public, on September 18th, Zwoop announced the sale was “currently suspended until further notice due to updated legal opinion”, seemingly providing further details in a now-defunct blog post.

Zwoop had reportedly intended to raise an additional $30 million by selling its ZWP tokens. The money would be used to boost app development and for a significant advertising campaign in the UK. The company was also planning to expand its workforce in London, open an office in the capital, and to hold its global app launch in the UK.

Employees and freelancers were initially concerned about the slow pace of development of Zwoop’s app. Gadotti is thought to have surprised workers when he announced that the app would be released in a month, despite employees’ concerns that it wasn’t ready.

“There is no technology that launches when it’s perfect,” Gadotti is quoted as saying.

Gadotti, also the former APA CEO of Powa Technologies (which collapsed in 2016), quit after the ICO was canceled.

Following the abrupt cancellation of the ICO, an employee reviewed the company‘s accounts and found $2 million worth of payments which couldn’t be accounted for.

Zwoop employees and Ivanhoe Capital are thought to have confronted Gadotti shortly after, with the founder denying that he misused any of the startup‘s money. He claimed the disputed amount could be attributed to legitimate payments.

Hard Fork contacted Ivanhoe Capital’s London office for comment but no reply had been received by press time.



Source: TheNextWeb

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...
- Advertisement -Blockchain startup Zwoop collapses following cancellation of ICO

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

How has Bitcoin of America Changed the Cryptocurrency Industry?

Who is Bitcoin of America? Bitcoin of America is a U.S. based digital currency...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when...
- Advertisement -Blockchain startup Zwoop collapses following cancellation of ICOBlockchain startup Zwoop collapses following cancellation of ICO

You might also likeRELATED
Recommended to you