Today we would like to draw your attention to a topic that is very important to us. Many projects have collected a lot of money in the best times for ICOs and yet have not achieved anything or used the money for other purposes. We think this is also a kind of trust abuse by investors and should be addressed.
Everybody that already invested in Crypto before spring 2017 knows Gnosis for sure. With its token output, the project directly hit the ICO hype and, like many others, was able to take advantage of the gold-rush atmosphere. The ICO was sold out on 24th April 2017, after just a few minutes. 12.5 million was raised for around 5% of the tokens distributed to investors. The rest was retained by the team itself. Through this controversial approach, Gnosis achieved a total market capitalization of around $300 million overnight and therefore was on everyone’s lips. In the course of 2017, the GNO token was even able to outperform its toughest opponent Augur in terms of price. At that time, they didnt even have any working product.
What is the goal of Gnosis?
The goal is to create a platform for dApps that allows betting on events. The whole thing mainly works as follows: Someone asks a clearly defined question, which ideally can be answered without contradiction. The participants can then bet money on the answer. All supporters of the question, which in the end is backed with the most bets wins. All supporters of the winning bet, win the whole money of the counterparties. The aim behind this is to encourage people to reveal their knowledge in the truest sense of the word and to get meaningful information. Thats the theory.
Whats the current status of Gnosis?
It became quite silent about Gnosis. The token has lost many places on coinmarketcap, lost relevance and fights not to slip on page 3. In addition, the competitor of the project Augur, with its already functioning Prediction Market has actually already fulfilled the vision of Gnosis. Even an average trading volume of around $45,000 a day gives no indication of the splendour of the former hype.
Quite concerning: While you can already bet actively on Augur, the Gnosis Team seems to focus to things that are not directly related to the implementation of the platform. It looks like the money is spent on other things. But does the project team give reflection to the ICO investors? Not at all.
But, what happens with all that raised money? A lot of money but little progress?
Not at all – Gnosis just uses the money elsewhere. The vision of the whitepaper seems to have faded into background. In addition, the development seems to be progressing a bit sluggishly. This includes the launch of their Coworking Spaces Fullnode (which you can rent for horrendous prices).
The works on their DEX DutchX (we guess its not necessary to mention, that the whitepaper had no word of it, in the time of the ICO), on the other hand, is already one of the larger success stories in their recent history. The money is also used to host developer conferences instead of delivering the promised product. According to the CEO, dAppCon is also financed by investors’ money. The question arises what all this has to do with the company in which the investors invested at that time?
One can also ask, “Is that really necessary?”. Do you need an ICO to finance the construction of a coworking space? Does it need another unsuccessful DEX? Gnosis “Exit scammed” its investors not by doing nothing, but by not following the path given in their white paper. They disappointed their investors by doing other things than they should and they hope that they will be forgotten. The millions collected are somehow used elsewhere. Because at Gnosis you cannot bet on anything so far, just on the patience of the investors. And what about community? It is missing completely. Telegram and other channels are extinct.
30+ Million in Fiat, 50 People, nearly 6 Million per year – no product
Gnosis has resources. According to CEO on Medium, Gnosis has more than 30+ million dollars available in Fiat. Fifty people are working on the project and the annual cost is almost 6 million euros. But what are they doing? There is no product and no active community! One should assume that 30 million dollars are enough to convert the original vision in nearly 2 years?! It looks like as if the Gnosis Team is just a top player in spending money.
And that’s incredibly sad! And furthermore it’s one of the reasons why ICOs don’t always work. Why should one work and follow the designed path when you’ve got millions of dollars free without doing anything? One is already rich anyway…
Join our telegram group and discuss which other projects follow the same scheme.
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