Australia Suspends ICO Worth $50 Million
October 23, 2018 4:14 pm
An Australian cryptocurrency startup named Global Tech Exchange (GTE) has recently stopped its operations. The company website states that the ICO could not meet the Australian Securities and Investments Commission (ASIC) requirements.
According to the report, the ICO was launched in the summer of 2018 and was aimed to create an education-based trading and exchange platform. The project had a fundraising goal of $50 million.
Michael Clarke, a former Australian cricket captain, endorsed the ICO. The ICO gained popularity quickly as one of the famous Cricketers supported it.
Clarke shared his excitement to be involved with Global Tech. He seemed happy by firm’s ambition. He also said that he couldn’t wait to learn more about blockchain technology.
Michael Clarke had endorsed the ICO on twitter and was immediately warned by his followers regarding the controversies surrounding ICOs.
— Michael Clarke (@MClarke23) August 8, 2018
This is how his fans warned him:
ffs, ex Australian cricket captain in an ICO.
Suggest Mr Clarke you just buy sandpaper.
It will do less damage to your reputation…
— John_Hempton (@John_Hempton) August 8, 2018
The reason behind the ICOs pause has remained unclear. According to GTE’s website, the firm has already returned all funds to investors. The site also mentioned that Michael Clarke is no longer associated with Global Tech Exchange or the Global Tech Exchange Blockchain education and awareness program.
There have been a massive number of ICO scams taking place across the world nowadays. Some promising ICOs have also failed as users were scared to invest in it. Recently a report stated that half of all Initial Coin Offerings (ICOs) in 2017 and 2018 were unable to raise any funds. But, 40 percent ICOs had raised $1 million each.
According to some people, ICOs are used to scam people by stealing their money. Whereas a few popular personalities in the world support Initial Coin Offerings. Binance’s CEO, Zhao Changpeng said that the Initial Coin Offering (ICO) model is favorable for venture capital even with the risk of fraud.