Crypto solar mining company goes belly up

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It appears that another company in the crypto space has gone belly up and this time, it’s one involved in the renewable energy sector. The company, CryptoSolar Tech were aiming to build a crypto mining facility in Spain that would be powered by solar energy.

For some reason they didn’t manage to obtain a building permit, and everything fell by the wayside, and the money raised through an initial coin offering (ICO) returned to investors.

According to a statement, the reason for this failure to obtain a building permit is reasons beyond the control of the founders of the project.

In June 2018 CryptoSolar Tech released a token which was financed by an ICO. In a period of two months, it managed to raise an incredible $68 million which was 6500% over the minimum investment of €900,000. But as with the vast majority of these ICO’s there was a twist in the tail. After a rosy initial period, the token tanked and lost more than 90% of its value, making it one of the top ten losers according to the ratings website, Diar.

A few months ago, CryptoSolar Tech announced a partnership with Risen Energy. Risen Energy is a Chinese energy company, and this was to help to develop 300 megawatts of photovoltaic power. The future was looking good for CryptoSolar Tech as Risen Energy was also commissioned to take on construction and engineering responsibilities for the entire project. However, none of this materialised. 

Bitfury is another company which has announced that it had grand projects in the renewable energy sector. This venture was supposedly commencing with a facility in Paraguay that would cover 200,000 square metres with electricity coming from a 500MW power station. To date, none of this has materialised either.

When compared to 2018, the number of ICO’s has declined by around 25%. There are far fewer ICOs in 2019 when compared to the same period in 2018, in part due to disappointing ICOs like CrytoSolar Tech’s. The trend is starting to turn around though, and we can observe a higher amount of ICOs in 2019 when compared to the same period in 2017.