Startups have generated millions of dollars through token sale. The peculiar aspect of the ICO space stems from the fact that most of those teams have no working products, not even alpha products yet the craze in the ecosystem was such that some entities raised billions.
There is an interesting turn of event for a project named Sponsy which recently listed on eBay, not to generate funds through an ICO but to sell the work already done to interested parties.
Deal is expected to be closed in a few weeks
Interestingly, they have announced that someone had indicated interest to buy the project at the listed price of $60,000. The founder who made the revelation on April 1 assured that it was not an April Fool Day joke.
“We indeed received an offer, but we are still in the middle of negotiations as we need to examine all the software and understand as to whether there is a match between their needs and our capabilities,” stated Ivan Komar the founder of Sponsy.
Komar who said that the deal is expected to be closed in a few weeks added that the interested party is not even involved in the crypto space but sees the project as a point of entry into the cryptosphere.
Advised to build working projects before raising funds
Among what was listed for sale were mobile app, web app, MVP developed” and a “full set of investment documents” that are “designed and approved by investment bankers.” The founder clarified that “approved” may not have been the appropriate word to describe what they have built.
The Sponsy project was designed to make sponsorship deals transparent by placing them on the blockchain. The team missed out on the opportunity to raise funds through an ICO in 2017 due to the advice from its legal team.
The lawyer advised that they build a working project first before raising funds even though there were many projects that sold tokens with no product at all then and even now.
Komar expressed his reservations then,
“And I asked him why, because I saw so many ICOs out there who did not have any idea for any product, yet they managed to raise tens of millions of dollars,” he told FT.