San Francisco-based blockchain firm Thor Technologies on Tuesday has announced the closure of its project.
Revealed by the company’s CEO David Chin in an official blog post, the company blamed the strict market regulations as the force behind its unanticipated decision.
“Thor ran into many regulatory challenges while operating that prevented us from achieving what we set out to in our white paper,” Chin noted.
Like most blockchain projects, Thor was also set to disrupt a trillion dollar industry – the gig economy. Developed on NEO, the firm brought blockchain to the industry and developed a platform to automate payments to the contractors.
Last year, the San Francisco-based company raised $21 million through an initial coin offering (ICO). However, the 50 million tokens issued by the company never made it to an exchange for trading.
“Unfortunately, we did not achieve the commercial success we were looking for,” the CEO added.
The company outlined that it has run out of funds raised by the ICO and is now struggling to continue its day-to-day operations.
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“We have been working behind the scenes to explore all possible options, including finding a way to raise enough capital to face the lack of sales or finding the company a new home where our technology could benefit from more resources,” Chin added. “Ultimately, it has become clear that the only course of action for Thor is to shutter its doors.”
“We have been exploring multiple options for Thor. We would like the project to continue in the hands of the right person and/or entity. Unfortunately, we have not been able to find the right fit for an acquisition at this time.”
Will it refund the ICO investors?
The company, however, did not clarify whether it will refund the ICO investors or not.
Any comments on the Thor token exit scam?
— Patrick Gaynor (@panda10143) April 10, 2019
Thor is not the only blockchain company squashed by the long-reigning bear market. Last December, The Block reported that a stablecoin project – Basis – was prepared to shut its operations and refund the majority of the raised $133 million to its investors.
Meanwhile, South Korean crypto exchange Bithumb also became a victim of the slumping market as it posted a loss of $180 million for 2018, Finance Magnates reported yesterday.