Finance
Collection For Goobers Nft Drops As Founder Claims He Wasted Funds Gambling
DNP3 is a popular broadcaster that has recently worked on multiple crypto projects. The Gobblers NFT and Gridcraft Network platforms have been developed and curated on these platforms.
This platform has been indulged in many philanthropic activities with the help of these crypto-based projects. However, the reports have something else to prove.
A recent appraisal of these transactions has levied Gambling charges on these founders. It has been alleged that the funds have been tactfully siphoned off.
As a result, the valuation of the listed projects has dropped sharply. This is the biggest reported loss on this exchange so far.
What Does The Founder Have Got To Say About This?
DNP3 is clueless about the recent developments. His assurances to reap billions from every stake have been reduced to nothing.
He has lost his wealth, net worth, and, most importantly, the goodwill of his platform. He used the investor’s funds negligently and now, there is no way with the help of which, he can get his money back.
This has been a huge financial setback. Furthermore, the allegations of gambling have shaken investor confidence.
Ever since the news made headlines in the media, the valuation of the crypto exchange has dropped by 9%. This has been followed by a fall in the listed CuCoins by 63%.
The company has reportedly delayed the production of its financial statements and financial accounts to avoid a further fall in value.
Around 15,000 collections of Non-Fungible tokens are actively traded on this exchange for the time being. This value has also decreased by 50% since last week.
How Did It Start?
The project was founded at a valuation of USD 1.2 million with a supply of 968 million ETH-sponsored tokens. The project was ranked 850 in terms of its market size and volume of transactions.
However, this has been the position since September 2021. The current market conditions have disappointed the token holders. They are withdrawing their investments instantly.
Due to these haphazard transactions, the exchange is losing its customers’ deliverables and is failing to meet the expected rate of returns to the investors.
How Did He Gamble The Funds?
The crypto exchange launched many projects in one go. These projects involved active investments from traders and founders.
The traders invested lump sum amounts of money in this fund, expecting to reap high returns quickly—the project aimed to channel these funds into philanthropic activities.
Tokens were to be issued against the present pool of securities. Active trade amidst the market forces of demand and supply was to ascribe value to these tokens.
The fund was operational, and the investment was collected. However, no corresponding securities were issued and traded in the active market. Instead, these funds were diverted to unauthorized and unscrupulous accounts.
They were shifted to casinos and gambling. The returns reaped from these activities were distributed on a limited scale initially amongst the investors.
However, the losses mounted to such a great extent that it became impossible for the crypto exchange to balance these losses and settle these accounts with profit.
Eventually, the returns became bad debts, and there was no scope for striking profitable deals with this trading history. This was the time when many investors resisted and demanded the production of financial statements and accounts.
However, no such proof has ever been submitted by the company. A recent disclosure alleging gambling seems to connect with the dots and explain how these funds have been lost and burned the capital of the entire exchange.
What Is The Future Of This Platform?
The capital has been exhausted to the core. Investor confidence has also dwindled to the lowest value. In light of these developments, the investment exchange’s future is bleak.
There is a likelihood that many lawsuits would be initiated against the founders and the executives for criminal misconduct and conversion.
All of this will add to the existing troubles of the investors, and there is very little scope for recovery reported for the time being.
Investments from leading ventures and capital funds back the platform. There is no certainty whether these investments have also been lost in the whole process.
If there is an affirmative answer to this, then there is a complete possibility of this exchange being labeled as defunct. It will be interesting to witness what is in store for this exchange in the upcoming weeks.
Conclusion
It can be concluded that these transactions are responsible for eroding investor confidence from the volatile tokens and crypto assets.
This is a major lacuna for the crypto industry as a whole. It is expected that the norms will be getting more stringent for this investment to mitigate the possibilities of these transactions in the future.
