New York-based startup, Civil, has issued a statement, stating it would issue refunds to users who participated in its token sale.
Civil had failed to meet up with a pre-set minimal requirement, after it decided to put journalism on a blockchain.
Matthew Iles, Civil’s chief executive officer, while reacting to this said, the startup had to close the sales process of its proprietary CVL tokens on Oct. 15, which was not able to reach the goal of collecting at least $8 million.
The decision to put the plans in motion, came after ethereum startup, Consensys, donated $5 million funding to Civil. Civil started the token sales on Sept. 18 to raise somewhere between $8 million to $24 million by Oct. 15 in its bid to launch a blockchain journalism platform.
Now that it has failed to cross that threshold, Civil said participants will be able to request an immediate refund, or “they will be automatically refunded by Oct. 29.”
According to a report published early this month by CoinDesk, it said Civil didn’t manage to bring in $1.34 million toward its $8 million minimum until Oct. 10, five days prior to the deadline.
That fact, perhaps, made the refund announcement on Wednesday not entirely surprising. As Iles noted that, “the numbers will show clearly enough that we are not where we wanted to be at this point in the sale when we started out.”
It will also be recalled that, Wall Street Journal had most recently publishrd an article saying, Civil had tried to pitch its blockchain-powered platform to several major media houses, including the New York Times, the Washington Post and Dow Jones, without success. However, Forbes took interest in the project and announced a partnership with Civil to publish its content on blockchain.
More so, Civil would not be giving up easily, as the start-up has announced it is looking to start another round of token sales – “happening in weeks, not months” before it can officially launch the platform.
“We’re also working on a new token sale process, very different from the last one and, we hope, much easier,” Iles noted.