Alex Tapscott’s NextBlock Global to refund money after ICO scandal
Nextblock Global to stop all proceedings with public transactions
Alex Tapscott, the CEO of NextBlock Global announces all money from the company ICO event will be refunded to the investors. The decision comes after Forbes pointed out the company putting forward false names as ‘Advisors’ for the start up. NextBlock Global is a Canadian crypto venture capital company in the trade market.
In an Initial Coin Offering (ICO) the company holds a crowdsale event to gather investors to fund the startup. This scandal of Tapscott’s company will have a negative impact on the ICO concept as well.
The company was targeting to raise a total of $100 million CAD which is equivalent to $78 million USD. The company was at $20 million CAD with a private offering, already achieving 1/5th of the target.
A press release of the company conveys, as a new company they will try again to build up the trust among investors and to take the company back to the public.
False listings by NextBlock Global
The false names in the NextBlock Global listings counts to a total of four members. Among them were Vinny Lingham, CEO of Civic company and Kathryn Haun, a federal prosecutor. The company claimed that Vinny and Kathryn were advisors to the ICO. The role of ‘advisors’ in an ICO is important, as it has a direct relationship with the level of backup the ICO will receive from the community.
When Lingham first saw his name on the listing as an Advisor, he had contacted Tapscott. However, Tapscott had denied the claim at that time. Lingham’s bio as an advisor was in NextBlock Global even at that time.
Tapscott is a well-known personality in the Blockchain community. This misleading listing suggests even well-known parties like him are hard to trust in an ICO. This brings trust issues back again to the ICO startups.
Tapscott further mentions the company will fully refund the capital of investors. If the company had made any profits so far, those will also be shared among the investors. Discussions are ongoing with the investors and within the company to figure out the next steps to proceed.