In light of our $FRAG token launch mishap, we would like to present to you this official address by our CEO. In addition, please find below our Emergency Live Video Community Address & AMA
An open letter from Stoyan Angelov. CEO at Evedo & Fragmint.
We are taking full responsibility for the problematic launch of the token. No matter if it was due to human error on our part or some sort of a hack which is again our mistake. Here’s the breakdown of the events leading up to the public sale.
1. Evedo Ecosystem
First, let me start with the introduction of Evedo. It started as a small ticketing project in the blockchain but since then Evedo has grown into a software company with numerous platforms. Plentix is our ticketing platform that has hosted hundreds of events and has generated thousands of tickets for events worldwide. Gigix is a platform that exists to connect all different types of businesses in the events space. Like event organizers, performers, venue owners, and more.
Fragmint is our latest project and it aims to give artists, brands, and big players in the entertainment space a new way of doing digital art and growing by forming communities, bringing value, and expanding on the technology of NFTs.
All of these platforms have been worked on by the team(ranging from 5 to 40+ people) across 5 years. The whole team is on our company websites with all of our advisers and we as the founders show our faces on monthly live updates on youtube for the past 3 years.
2. Fragmint Fund-Raising
Due to the start of the project essentially in unfriendly market conditions we faced a number of difficulties. We started fundraising back in October last year, but because the fundraising was started in bad market conditions it was NOT a few weeks/months and we were done. It was so extended that we managed to start the public sale only in June. We’ve surrounded ourselves with great launchpads like BinStarter, Bullperks, KDG, Enjinstarted and others. We did very successful marketing activations and actually successful IDOs. But because of the extremely big global market drop, we as a team, together with our great advisers decided that we cannot launch in these conditions. This would have been very bad for the long-term success of the project. So we refunded the launchpads that we actually sold out and decided to extend the period of the launch by another 3 months. During this time we managed to build an enormous community and explain our project to tens of thousands of people.
Meanwhile facing pressure from private investors because of the bear market and their personal situations, which is more than understandable. The pressure included distributing the tokens or giving bonuses etc.
We finalized all the launchpads a few days ago… 15+ launchpads thanks to their great professionalism and many many sleepless nights on our end. The raise was close to our allocation for public sales, which everybody can see on fragmint.com – close to $1 Million. Of that $1 Million we did not receive a penny due to the problematic launch.
3. The Token Launch
We are taking full responsibility for the problematic launch of the token. No matter if it was due to human error on our part or some sort of a hack which is again our mistake. Here’s the breakdown of the events on the 13th of Oct:
Before 3pm UTC we:
- Finalized all the sales – some sold out in minutes, some in days, some we raised half or even less.
- Distributed all the tokens to the launchpads so they have them ready with a clear vesting schedule: 40% at TGE and 10% monthly.
- Added our own liquidity to PanCake which cumulatively was around $500 000 of our own money. We did this with our official partners – Gotbit.
So at 3 pm UTC everything was looking great because we prepared everything by the book. The issue that arise was:
One wallet with millions of FRAG tokens that for some reason were unlocked (and again – it was definitely our mistake and we are investigating actively who is the owner) dumped all of the tokens from his wallet on the market, dropping the price below the IDO price – $0.04. This happened in the first one minute and 29 minutes later the launchpad was scheduled to distribute all the tokens.
We needed a few minutes to collect ourselves but in a very timely matter we saw that there is a problem and it wouldn’t be fair to continue this way. We did official posts saying that the launchpads should refund all the participants. We were very clear on what they should do!
We also stopped all the other distributions of private sale participants to not cause more sell pressure on the market and there will be an official ACTION PLAN in the next 1-3 days that will clear all the relations with all the Fragmint participants.
We faced that, together with our investors and our community. Now that we had a couple of days to talk with our advisers and partners we are coming with a new strategy and action plan to help this situation and we will announce it ASAP. As we mentioned above – 1-3 days!
We are here to stay!
— Stoyan Angelov, CEO @ Evedo & Fragmint.