The crypto-bear market has claimed another victim. This time is his start-back venture Zwoop, an ambitious AI system for e-commerce apparently built on the blockchain, which reportedly fell into administration after a failed attempt at an initial supply of coins (ICO).
According to a recent report from The Telegraph, Zwoop closed its operations, which included offices in Hong Kong, London and Singapore, after failing to pay bills for a total of several hundred thousand pounds leaving its more than 50 employees with unpaid wages.
Zwoop was founded in 2016 and in the course of the year it raised $ 13 million from Robert Friedland, an American-Canadian billionaire and a mining magnate. However, the now defunct startup decided in August he would try to raise 30 million dollars through an ICO.
This plan has never seen the light of day when the company announced a week before the sale of public tokens ZWP that was suspending the capital increase due to an updated legal opinion. The ICO capital was intended to promote app development and a consistent US advertising campaign, as well as adding more staff.
The report indicates that, after the failed ICO, an employee examined the company's books and found that it was not possible to account for $ 2 million in payments. This put the founder of Zwoop, Alessandro Gadotti, in the hot place for potential fraud, which he categorically denies.
The history of Zwoop is becoming common when the crypto-bear market enters its thirteenth month, while companies that have thrived during the euphoria of 2017 are starting to feel the downside of the business cycle.
Other: Exclusive: Zwoop, the technology start-up backed by billionaire Robert Friedland, slips into the administration
In their words: The Zwoop Story So Far
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