Dragonchain Pull Out
The state of Washington, USA is facing a few issues with Initial Coin Offerings (ICOs). One company based in Seattle – Dragonchain – is now requesting that one of its partners – Lagon – returns all of the money that it secured from investors from earlier in the year. No-one is quite sure why these particular funds have caused such a problem, but there is something clearly behind the investment.
In a surprising move, Lagon released a statement on the last day of its resale stating to all investors that all sale movements had been halted. It was quite apparent that this was not instigated by Lagon but in fact the outcome of the partnership with Dragonchain. All of this happened on 28 April 2018 and, as highlighted above, the exact reasoning behind the decision is not clear at the moment. Dragonchain – the Disney enterprise Blockchain company – has been behind the complete lock down and it remains to be seen as to the exact reasoning for the decision. Even Lagon cannot explain the change in heart and why they now need to return about $1.3 million in Ethereum.
The Possible Reasons
There is the possibility that this could all be regulation related. However, this has not been confirmed by either party. It has been noted that Dragonchain announced that the change of mind was as “per legal guidance”, however, no further details have been shared. It actually is a mystery to many including Lagon.
In the immediate future, investors are not particularly happy with the outcome, and many are asking for a refund. Five companies – including Lagon – have been working with Dragonchain and their pre-sales have been extremely disappointing. Some of these investors have in fact been looking for refunds either for legal reasons or for the simple fact that the companies have not delivered by the date promised.
At the moment all roads seem to lead to the fact that Dragonchain is uncertain about the crypto token industry and how this will affect their business. Rumors are suggesting that there is a new legal team in place, which has aired its concerns hence the curbing of the venture. But once again, nothing has been officially announced, so gossip is filling the gaps in knowledge.
At the moment Lagon has been left in a predicament and left desperately trying to alter its release date as well as find another partner to take over from Dragonchain. This may well be easier said than done, to be honest. It looks like this is the start of a continuing trend in the USA with many looking for a well-defined set of regulations before they trust crypto tokens.
There is a statement due to follow in the coming days from Dragonchain, and hopefully, more light can be shed on the matter. However as it stands right now, Dragonchain is refusing to reply to requests for further comments. Many will be on the lookout to see the exact reason behind their latest decision especially the five companies affected the most.