Initial coin offering (ICO) operator Civil will refund investors due to the blockchain startup’s failure to reach its minimum sale cap. Civil will conduct another token sale in further efforts to build their Journalism business.
Civil’s first ICO began in September and wrapped up this week. Their mission, according to their website, “is to help power sustainable journalism throughout the world” by using blockchain and decentralization.
Despite high profile partnerships including with media heavyweight Forbes, the ICO nevertheless failed to hit the $8 million fundraising minimum. Roughly 3,000 people bought CVL tokens to help the project.
The Civil team will conduct a new token sale fundraiser in a simpler format, with details in the coming days. After their new token sale reboot, Civil aims to officially launch. “This is happening in weeks, not months, “said Civil founder Matthew Iles.
Aiming to act appropriately, Civil will refund all investor funds via three options, allowing them to choose whether “to opt into this new sale, request an immediate refund, or be automatically refunded by October 29.”
ICOs have seen an enormous amount of deception and fraud over the past two years, which may have contributed to a reduction in ICO fundraising, even among reputable projects. CCN.com research shows that almost $100 million has been stolen from investors due to ICO exit scams alone. Moreover, 81 percent of ICOs are reportedly scams, suggests another report recently profiled by CCN.com.
Civil made it clear that they intend to persist in their goals. “The CVL token sale didn’t succeed. We’re disappointed, but we’re as committed as ever to seeing Civil out in the world,” explained Iles.
The Civil Foundation has received $3.5 million from notable project ConsenSys, to help with initial operations. These funds will go toward funding various needs, such as their initial 14 newsrooms. Newsrooms are already working and reporting, the firm said.
After completion and distribution of the newly reformatted token sale, Civil will launch. Their launch includes the release of a blockchain publishing plugin for WordPress, a community governance application, and a developer tool for building with Civil data without blockchain expertise.
The Civil project aims to save the world of journalism, explaining that the internet has taken this world down an unsustainable path that does not serve the public well.
Investors of the recently failed ICO see significant value in Civil’s model. Iles said that supporters were “not buying CVL tokens because they want the latest, greatest cryptocurrency. They’re doing it because they believe it’s a new and worthwhile way to create, distribute and support journalism, at a time when alternatives are desperately needed.”
One Civil supporter said, “I was really looking forward to having a part in responsible journalism that the readership can help also hold accountable.”
Images from Shutterstock