Golix Suspends ICO: Why Did They Go Forward With It In The First Place?

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Posted by Read 18 Comments

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.

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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.

Golix

Golix is a Cryptocurrencies exchange in Zimbabwe. Golix was founded in December 2014 and was initially called BitFinance while their exchange was called Bitcoin Fundi. The company was founded by Tawanda Kembo and Verengai Mabika. In May 2018, Golix was ordered to shut down operations... Read More About Golix

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18 Comments

  1. Sacha says:

    This is by no means the end of the story. Golix needs to adjust wings while in full flight. Bitcoin is here to stay and block chain tech has several uses other than currency trading. Golix shall need to stay out of the box as they always have. Take a leaf from Econet’s fight with the regulators.

    RBZ were masters of ghost money and they hate to see their fiat become real money. They want a stake in it. For the first time, actual bond paper is worth something and that cramps their RTGS and Roadport and bags style.

    We will support you Golix. Come up with something and give us our crypto back. We don’t want to be left behind again.

  2. Nice says:

    Well they can trade in USD now… Let see if they make traction since they won’t be any premium

    1. Ra's al Ghul says:

      You should understand that the “Premium” which you love so much is not a product of Golix and also that it’s not where their money even comes from. The premium is just a reflection of the USD/RTGS rates and it really doesn’t help Golix, because at the end of the day, the money is just an RTGS value in the bank account. Exchanges always charge commissions for all trades – that’s where their money is. That’s their business model. Exchanges do not fix the prices – the market is the one which sets the price (willing buyer – willing seller).
      Right now they already have a Bitcoin ATM which accepts/dispenses USD. There are no premiums on it because the trade is in real USD value – not at the “premium” which is actually a product of RBZ and Government – the real people stealing from us.

      Now I command you to go in peace and stop preaching the wrong gospel of premiums.

      1. Huh? says:

        You are wrong you charlatan, Golix has a premium that i smore than that of USD/RTGS… think about it, USD/RTGS is 45% GOLIX/USD is 60-65% (less charges of -10%) it creates an opportunity for profit on trades as the premium on Golix absorbs all charges and sometimes leaves a profit on each trade making trading your bitcoin on Golix cheaper than trading them elsewhere. You mentioned the Golix ATM, they are not doing any business on it at all precisely because there is no premium, if anything, it is more expensive that’s why you don’t find anyone using it or any queues.

        Google the term “arbitrage” and you will understand what Nice is talking about, remember when local Old Mutual shares shot up in Value a few months back and the Zim stock exchange went crazy, it wasn’t because old mutual had an incredible business model, rather, it was because there was a premium for the local shares of old mutual compared to the price of old mutual shares in RSA, by simply disposing your shares in RSA and then buying them in Zimbabwe you would make a profit, as soon as the parallel USD rate stabilised below as certain point that premium was gone and as such the demand fell and the local stock exchange lost a third of its value in a week, every one packed up and left…. so the PREMIUM is everything.

        Now I command you to stop your blasphemy and depart from your ignorant ways.

      2. macchiwae says:

        Whats the effect of Golix position and RBZ to someone who had bought Bitcoins from Golix

  3. Happy Go Lucky says:

    Golix should have attributed the cancellation of the ICO directly to the actions of the RBZ and they should have highlighted actions being taken to engage the RBZ instead of pretending as if their actions are independent of the RBZ and a mistake on their own part, it leaves room for speculation and also it can appear as a blunder, sloppy planning or panic on their part, they should control the narrative and angle for public Sympathy – THEY ABSOLUTLY SHOULD NOT ACCEPT BLAME. They should have gone for a statement along the lines of:

    “On Saturday 12 May 2018, we announced that we will be doing a token sale. Regrettably on the same day of this sale the RBZ issued a directive which made it difficult for some of our users to participate in the ICO, the directive went further to instruct some of our partners to wind down their association with our Zimbabwean exchange which would bring a lot of inconvinience to our users. bla bla bla. It is for this reason that we have decided to suspend the ICO while we engage all relevant stake holders on the best way foward. We would like to assure all our users that bla bla bla bla bla.”

    Instead they have just issued a statement on Techzim taking the entire blame because of a blunder that they cant’ state , they didnt say anything on their blog and they have removed the link of the ICO on their website quietly. Golix can’t be shy now they have to milk this opportunity and ride on all the sentiment in their favor, of course without provoking a fight with the RBZ – But this is an ideal opportunity to show a disruptive startup going head on with the authorities . Golix must not be taken over by events, people move on and they forget event like this The PR machine at Golix must show a company much bigger than the current announcement and a company in control of the situation and above all a company under attack from the bureaucracy that they will fight. They can’t quitly sink into their shell and keep their users in the dark.

    C’mon Golix “Be Bold”

    1. Ra's al Ghul says:

      For the first time I agree with and respect your comment.

  4. Imi Vanhu Musadaro says:

    The RBZ has always been clear about its position on Bitcoin. Why is it suddenly a big issue today. This is not the first press statement they have issued, nor is it the first time they have aired their views with regards to Bitcoin.

  5. Tapiwa✓ says:

    Why did they go for it in the first place?

    Easy: because 15% of the ICO set aside for the owners works out to over $5 million? Who doesn’t want to become a millionare?

    1. Farai Mudzingwa says:

      Well, they did suspend a few hours after it had gone live so maybe they don’t want to become millionaires anymore?

    2. macchiwae says:

      Please explain further?

  6. read it & weep ! says:

    Warren Buffett on cryptocurrencies: “When you buy something because you’re hoping tomorrow morning you’re going to wake up and the price will be higher, you need more people coming into it than are leaving. And you can get that and it will feed on itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings. And along with the fact that there’s nothing being produced in the way of value from the asset, you also have the problem that it draws in a lot of charlatans and that sort of thing, who are trying to create various sorts of exchanges or whatever it may be. It’s something where people who are of less-than-stellar character see an opportunity to clip people who were trying to get rich because their neighbor’s getting rich buying this stuff neither one of them understands. It will come to a bad ending”

  7. clive says:

    isnt the whole point of cryptocurrencies is that its the unregulated by any government or anyone?? why yeild to the RBZ?? does it not go against the very foundation of the crypto’s??

    1. Hr says:

      They can keep trading cryptos, but if they cannot cash in and out to a zim bank account why would anyone in zim use them?

  8. quack quack charlie tin says:

    lol, from the web, What is a charlatan ? …”a person falsely claiming to have a special knowledge or skill.” A charlatan is a person practicing quackery or some similar confidence trick or deception in order to obtain money, fame or other advantages via some form of pretense or deception. Synonyms for “charlatan” include “shyster”, “quack”, or “faker”. ……hmm.. lots of charlatans in this Zim crypto space?!

  9. macchiwaye says:

    RBZ blocked derivates markets now Crypto. The effect is that it limits financial markets evolution, innovation. Companies and people make loses across all sectors. They will be winners and losers so dont block?

  10. Vusa says:

    Golix coin was not meant for Zimbabwe alone but as an African crypto trading coin and exchange. If it was truly that then the RBZ decision and opinion wouldn’t have mattered much if at all. How Golix does not seem to have marketed to all of Africa and invited all of Africa to participate. Hence RBZ decision was such a stumbling block. It seemed was a Zimbabwe and Zimbabwe alone coin and ICO.

  11. Vusa says:

    Golix coin was not meant for Zimbabwe alone but as an African crypto trading coin and exchange. If it was truly that then the RBZ decision and opinion wouldn’t have mattered much if at all. But Golix does not seem to have marketed to all of Africa and invited all of Africa to participate. Hence RBZ decision was such a stumbling block. It seems it was a Zimbabwe and Zimbabwe alone coin and ICO.

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