In what will come as good news to the RBZ; Golix has suspended their ICO. They sent out a statement apologising for the inconvenience. You can read the statement below:
On Saturday 12 May 2018, we announced that we will be doing a tokensale. This announcement was a mistake on our part, as it happened sooner than it should have, and had not taken account of all pertinent issues. Updates on this will be provided in due course. Any inconvenience causes is sincerely regretted
It is strange that they had gone forward with the ICO because clearly there were now too many factors that would affect their ICO after RBZs statement.
Why would you invest in the token after RBZs decison?
Already cryptocurrencies were unregulated which made them murky waters but now that RBZ had announced its position, potential investors had every reason to NOT want to invest in this. The central bank gave a stern warning to the general public whilst also instructing banks to not hold accounts for exchanges (i.e. Golix, Styx24). This made it very difficult to actually gain the trust of investors when external factors are in such a chaotic place.
Another thing right now is; it is not clear whether trading is illegal or people have just been advised against trading. It seems there is no law put in place yet and people can trade “at their own risk” but as an investor, you will be wondering whether regulation is on the way or not.
Cryptos are already dark waters
For many investors, cryptos are not exactly the safest bet (without factoring in RBZs stance). Their volatility and the fact that people are yet to understand them means that already plenty of people are hesitant to make the jump. Factor in the new regulation and now investors will surely take a pause before committing.
To pacify investors?
Maybe Golix wanted to allay the concerns of Investors who had participated in the pre-token sale. So when there is an ICO there is a phase called the pre-token sale. During this period investors (NOT the general public) invest in the ICO and some of their investment helps whoever is responsible with ICO (Golix in this case). Maybe Golix felt pressured to assure the investors that they had everything under control but honestly this was not a logical move.
Anyway, they’ve protected their customers…
One thing I do give to Golix, however, is that; through this announcement, they have protected their customers (or in this case, potential investors). When a decision like the one RBZ made is announced there is usually a lot of emotion and some investors may invest from an emotional place rather from a logical place. By suspending the ICO, Golix has protected potential investors who may have felt obligated to support them in the face of such a crisis and this is commendable. Golix could have continued with the ICO, taken the money and fled the scene if things got sticky.
The decision to proceed with the ICO was probably an emotional response on Golix’s part and we will see how it affects them when all is said and done.
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