Investors in Porn Coin ICO Left Unsatisfied After Project Flops - Bitsonline

Investors in Porn Coin ICO Left Unsatisfied After Project Flops

Investors in an ICO for Fantasy Market, which aimed to build a token-based platform for live streaming adult content, are reportedly furious about what happened to their money. The December 2017 token sale reportedly fell well short of its $25 million USD goal, causing founders to abandon the project.

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Refunds Paid in USD Value, Not Actual ETH

Although the failed ICO offered refunds to its investors, many remained unhappy with the outcome. Many said refunds were slow, non-existent, or had not received a response. Those who did receive refunds only got the USD value of investments (in ETH), rather than the exact ETH they used to buy in.

The official website reads:

“All cryptocurrency investments were accepted in terms of USD, and the conversion rates used were determined by the market price at the time of the investment. Similarly, investments are being returned at the USD rate in which they were received.”

The value of Ethereum’s ether has increased markedly since then — ETH went from $470 USD to its current $1,220.

As a counter point, spending ETH on an ICO token means you no longer have ETH anyway — and instead of getting a USD-equivalent ETH refund, investors could have received only worthless FMT tokens. There’s no guarantee a token sold at an ICO will actually rise in value.

Responding to Bitsonline‘s query about the refunds and conditions, a Fantasy Market representative said the terms were clear from the outset. Crypto funds were converted after they received, so the project wasn’t benefiting from any rise in value.

“Honestly it’s ridiculous what has been reported. The majority of funds have been returned, and the rest will be in the coming days.”

“Also, if you’re wondering why we are returning the USD equivalent, it’s because that’s how the sale was conducted since the beginning. It was very clear on the website that the “1 USD = 5 FMT”, at the current exchange (at the time of investment) of ETH to USD, or BTC to USD. We had to convert the crypto to USD in order to use for marketing, so it’s not as if ‘the value of our ETH or BTC has gone up.’ Overall, we’ve lost money on the project, and want to issue these remaining refunds in the next few days, so we can honestly say we’re done with them.”

What Was Fantasy Market Token for?

So was Fantasy Market Token a scam? Or just a poorly run project? Is there any difference?

According to its own marketing, Fantasy Market Token (FMT) would be used to pay performers on live streaming porn sites.

“Fantasy Market is a marketplace for live, user directed performances. Using our token, you control what performers say and do during the show. This intimate level of user interaction will revolutionize the adult entertainment industry.”

It’s unclear why the industry needs such a token — existing sites such as xotika.tv have operated for years on the same principle using other cryptocurrencies, mostly bitcoin.

Fantasy Market launched the ICO on December 3rd, and it was due to end January 1st 2018. There were pre-sales in the months preceding those dates. However according to members of the group’s Discord chat, organizers ended the sale prematurely and announced a refund for all investors.

‘Sloppily Put Together’ Project

New York Post reporter Kevin Dugan interviewed project lead Jonathan Lucas in December by text message, but was unsatisfied with responses. He called the project “sloppily put together” with dubious claims about its founder’s career, and noted none of the actual technology for the platform had been built yet.

adult on bedLucas then admitted Fantasy Market’s ICO had raised less than $2 million USD of its $25 million target, and ended the sale shortly after.

Fantasy Market provided Bitsonline with the ETH addresses they said belonged to the crowdsale and ICO contract. The sale, they said, actually raised under $50,000 USD at time of liquidation and the plan was to conduct a refund if the total was under $2 million.

One investor claimed that “Jonathan Lucas” is likely an alias, though Lucas apparently denied this in a November chat.

Investors have since continued to fume in comments and chat groups, even threatening legal action. How successful their campaign will be depends a lot on what information is available on Fantasy Market’s organizers.

One wrote: “No response after sending emails and Discord DMs either. I’d be interested in pursuing legal action but wouldn’t know where to start.”

Anyone participating in such crowdsales should be aware of the risks — and understand that performing proper due diligence on operators is entirely their responsibility.

Were investors treated fairly in this case? Let’s hear your opinions in the comments.


Images via Pixabay

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