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Fantom project announced the beginning of liquidation due to lack of funding

Fantom project announced the beginning of liquidation due to lack of funding

The Factom project, which became one of the” pioneers ” in the sale of tokens through ICO, launched the liquidation procedure, without receiving the necessary funding from investors.

This was announced by Factom’s largest investor, FastForward Innovations, which published an announcement on the London stock exchange’s website. According to FastForward, on March 31, Factom management held a meeting, during which it was decided to start the process of alienating property in favor of creditors due to lack of funding.

In March, Factom management warned investors that without funds, the project would have to stop operating at the end of the month. However, FastForward, which owns the largest share of Factom shares, said it was preparing to renegotiate a simple agreement for future shares (SAFE) worth $6 million in order to attract new investors. Despite the fact that FastForward agreed to participate in the next investment round, the company refused to become a leading investor in Factom.

According to the decision made at the Board of Directors on March 31, FastForward will receive the “lion’s share” of the assets and intellectual property of the Factom project, which will launch the liquidation process. However, the start date of liquidation remains unknown. FastForward Director ed McDermott is extremely disappointed with this news and still does not understand how Factom could have found itself in a difficult financial situation.

Recall that the Factom project was launched in 2014, and last fall it received a $200,000 grant from the US Department of energy to test the national grid’s protection technology. In addition, in 2018, Factom patented a system for protecting confidential data on the blockchain.