Thor token, a San Francisco based blockchain project, has shut down its operations after raising $21 million. Officials of the Thor project claim the project was forced to shut down because it “was not able to gain traction and achieve commercial success.”
According to the announcement made on April 9, Thor’s team stated that it could not manage to raise enough capital to come up against the lack of sales. The company added that it could not find a new place where it could benefit from more resources.
The announcement followed several days of speculation after Thor locked its Telegram to comments. During this time, rumors were alleging that the owners of the project had offered a former employee the company and its 50 million tokens for US$10,000.
David Chin, the CEO at Thor revealed that the company has been trying to find the right person/ organization to hand over the project, to ensure continuity. However, they have not been able to find one to take over operations so far. Chin added:
“Thor ran into many regulatory challenges while operating that prevented us from achieving what we set out to in our white paper. We hope that the economic environment in the future will be conducive enough to support innovation and we will have the opportunity to serve you better… Thor will be ceasing operations soon given no other funding or acquisition offers are found.”
In the post, the company issued an apology to token holders for having “stayed silent for so long.” Chin also blames their demise on the “many regulatory challenges.” The company is registered in the US, and sources have told reporters there are questions now about its legitimacy.
Reportedly, Thor had laid off 50% of its staff with the aim of “correct cash flow”. In addition, the company had announced that it had signed three agreements which “represent over 8,500 contractors”. The company also claimed that it had “a pipeline of over $1.8 million of Annual Recurring Revenue (ARR) that we will be closing in sales deals over the next year.”
Chin concluded, “All Thor code and products will remain open source for the community to use, modify, or fork, for its benefit.”
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