In the light of CEO Alex Green’s recent announcement that Moopay LTD will be filing bankruptcy, the creator of Dogecoin, Jackson Palmer, released a statement regarding the aftermath. “It's sad to see anything like this which hurts the awesome folks in this community - hopefully…
“It’s sad to see anything like this which hurts the awesome folks in this community – hopefully store owners will find another solution (fairly sure Shopify now supports crypto through gateways) to accept DOGE and the migration isn’t too painful.”
“That being said, I find it hard to feel sympathy for the business – if you’re running a bootstrapped startup, you don’t go around throwing tens (or maybe hundreds if you add it all up) of thousands of dollars at sponsorships, IRC ‘soaks’ and ‘accidental’ donations. I’ve brought this up in the past, and hope that at least some people considered my advice.”
The “soaks” and donations that Palmer brought to light are in regards to a nearly $15,000 donation to the Josh Wise NASCAR fundraiser months ago by Green. Along with the donation, Green also recently gave away 50 million DOGE on an IRC channel to random individuals, totaling up to around $12,000. Whether or not these were personal funds or company funds remains unknown.
The IRC giveaways were close to the announcement of bankruptcy, leading some people to become highly suspicious of the activity.
Palmer continued in his statement, tackling the question of PIE investors in Moolah.
“One question that springs to mind is what will happen to the poor PIE holders from this community who threw more than 750 BTC at this company in crowd-funding through both public and private offerings. I really hate to see people burned like that, so I’m hoping these “investors” aren’t left out in the cold.”
Green raised $340,000 between three rounds of PIE investors. Last month alone, the company reportedly spent $45,000 on staffing, $12,000 on operational costs and $10,000 on legal costs. They burned through their capital too quickly and faced a tough decision.
Due to the nature of these PIE investments, Moopay may not be able to file for bankruptcy under the Insolvency Act of 1986. Green announced that the company is also looking into selling the business, technology and will wait to wind down the company to explore all avenues.
A vocal redditor against Moolah from the Dogecoin community known as NeutralityMentality made a return to the subreddit upon hearing the news, chiming in on the PIE investor scenario:
“I feel very bad for those who invested in the profit-sharing “Moolah PIE” program. I know of many people who had significant amounts of savings, money for college, and other important funds with Moolah.”
“I would urge you to make a backup of all communications from Moolah, including their blog posts, investor communications, and information that was given to you before you invested. I am not an expert on UK bankruptcy proceedings by any means, but you may need to establish your place in line to receive whatever funds are left. This goes double if you were promised a refund on your investment that wasn’t followed through on, as several investors were.”
As the story continues to unfold, CCN will be monitoring what happens with MintPal, Moolah, MooPay and Moofarm. If you have any tips, please send them our way through our form.
Images from Shutterstock.
Last modified: January 3, 2020 3:18 PM UTC