Crypto Crash Leaves BlockEx with Only £5.5 Million of ICO Fu
BlockEx has also suffered because they kept a portion of their funds in digital assets, whether in tokens they sold through init
BlockEx has also suffered because they kept a portion of their funds in digital assets, whether in tokens they sold through initial coin offerings or in crypto coins. As prices collapsed this year by more than 90 percent in some cases, and their so-called digital wallets thinned out, the company has lost £4.3 million of asset value. BlockEx attributed part of theses losses to changes in EUR/GBP exchange rates between raise and liquidation of the assets.
“So in reality, out of the £20m raise, we were actually left with just £5.5m of available funds for the business on a go forward basis,” the statement further explained.CEO remained upbeat, however
When BlockEx discovered it could fall in a financial crunch, and couldn’t raise funds that initial investors promised, it started seeking additional investors. But compared to a year ago, the process is more complicated in a bear market. The startup already signed a private investor to pump £5 million, but the funding failed to materialise after the investor indicated that “they were now too exposed to a further softened crypto market.”
BlockEx CEO remained upbeat, however. Leonard sought to soothe shareholder unrest, telling the investors interest in his company’s offering has remained robust despite the downturn. Specifically, he says BlockEx received a new investment proposal from a “significant and credible investor” who can help take its technology into quickly regulating markets.
Leonard expects to close the deal in two months “if all goes well.”
BlockEx offers a platform that “manages the entire lifecycle of blockchain based digital assets, including origination, issuance, exchange, settlement, and redemption,” according to its website. Its services are three: a cryptocurrency exchange building service, an ICO marketplace connecting projects and investors, and a digital bond service which uses blockchain technology to manage investor-to-company loans.