Slowing crypto market leaves BlockEx short on funding
Back in January 2018, promising London blockchain startup BlockEx had a moment of great opportunity - launching an ICO event in which more than £20 million was raised.
BlockEx, which manages the whole lifecycle of blockchain-based assets, was raising its funds in the middle of a soaring ascent in the cryptocurrency market. Not long after, however, this chilled as investor confidence wobbled.
The bear market that followed means that token-buyers with commitments worth around £9 million failed to deliver, while the significant proportion of funds BlockEx chose to hold digitally were hit by a valuation crash in crypto later in the year, dropping in value by £4.3 million.
“Out of the £20 million of funds raised, we were actually left with just £5.5 million of available funds for the business on a go forward basis,” read a statement from the startup.
But according to other reports, its CEO Adam Leonard managed to manage the concerns of many investors, as well as receiving another proposal from a “significant” investor with connections to valuable markets.