Alexandre Dreyfus, the chief government officer and founding father of fan token firm Socios, is in sizzling water.
In line with Off the Pitch, Dreyfus has been accused of withholding funds to maintain the value of Chiliz (CHZ), the cryptocurrency utilized by the Socios neighborhood, secure.
Socios is a brand new app for sports activities and esports fans, the place they achieve voting rights to affect the golf equipment and groups they assist.
Socios companions with greater than 100 sports activities groups to generate fan tokens that present prizes and the possibility to vote for sure elements of the membership, such because the shirt variety of a brand new signature or the music performed when a workforce scores a aim.
Associated article | Mexican Drug Cartels Sneak In $25 Billion A Yr, Utilizing Bitcoin To Fund Operations
Fan Token Firm Boss within the highlight
In line with Off The Pitch, Socios withheld cryptocurrency funds from key advisors to protect the worth of its CHZ coin.
Fan tokens are related to actual sports activities groups, creators or artists, and provides forex holders entry to unique fan golf equipment the place they will vote for neighborhood picks.
In case of Sociosis the platform targeted on sports activities, with customers shopping for Chiliz to purchase fan tokens representing totally different groups in soccer, motorsport and soccer amongst others.
Socios is a vital a part of soccer’s monetary ecosystem, having invested greater than $200 million.
Fantokens no funding?
Solely on February 16, Dreyfus emphasised that the corporate’s fan tokens will not be an funding and that the corporate’s aim is to supply worth to followers and streams of income for sports activities groups — to not create items that may be collected and exchanged for revenue.
Off the Pitch experiences that Dreyfus reportedly didn’t pay Chiliz’s shares to a number of of his advisers in trade for backing the cryptocurrency.
In line with the article, an nameless know-how government solely acquired “a portion of what was promised”, and in September 2020 Dreyfus started “avoiding any communication with the advisors”.
Associated article | The notorious BIG honored with NFT since his homicide in 1997
An Worker Misplaced $10 Million?
A whistleblower who internally raised issues about missed funds was fired on trumped-up costs of “harassment,” whereas one other worker claimed he misplaced $10 million on account of “withholding funds,” the report mentioned.
An inside message from the CEO learn:
“In case you give away free tokens, anybody can promote them at any value they need – they do not care.”
“Real traders” who purchased Chiliz may lose cash on account of advisers liquidating the forex, he famous.
The Chiliz consultant expressed remorse that sure advisors “who’ve labored with us prior to now haven’t been paid on time, and we’ve resolved this straight with them and proceed to have optimistic ties with them at this time.”
Featured picture from The Verge, chart from TradingView.com