Forbes-backed ICO fails to reach $8M target, investors to be refunded
The much-hyped Civil ICO has failed to reach its minimum target of $8 million, becoming only the latest ICO to fail at the first hurdle.
In a highly embarrassing turn of events for the firm, Civil raised less than $1.5 million for its blockchain journalism platform—despite partnerships with the Associated Press and Forbes, amongst other high profile names.
The company had initially planned to raise between $8 million and $24 million from its CVL token, with initial sales of 34 million tokens expected during the launch phase. In spectacularly failing to reach this target, it becomes one of the increasing number of ICOs that fail to inspire investors.
In the early days of ICOs, some had suggested that a company need only have sound basics to launch successfully, securing millions in funding in the process. However, in what some have read as an indication of waning investor interest, Civil’s failure is becoming an increasingly common story.
Commenting on the ICO, Civil said it would issue refunds to the 1,012 investors who took part in the token crowdsale. Civil CEO Matthew Iles implied that the process for buying was too difficult, thanking those who “were willing to jump through the hoops required to buy CVL tokens.”
He described the failure as a “setback for us, though not a shock,” and said that the firm was working on a newer, simpler ICO to bring to market in the near future. “We expected a different outcome when we launched the sale, but circumstances changed,” Iles said.
However, Civil remains undeterred, with the not-for-profit Civil Foundation said it still intends to push on with developing the platform. Pointing to $3.5 million in funding secured from Consensys, Iles said that the company was here to stay.
“The Civil Media Company is here to stay. We’re here to build, and we’re excited for this new beginning,” the company stated.
Civil’s failure is one of the most high profile in recent times to fail to reach its funding target, notable due to the press coverage around the token issue, which would ordinarily have led many investors to assume it would reach its funding target. By falling short, and by some distance, the Civil ICO could be a sign that investors are turning cold.
To receive the latest CoinGeek.com news, special discounts on CoinGeek Conferences and other inside information direct to your inbox, please sign up for our mailing list.