Journalist Platform Civil Struggles Selling CVL Coin in ICO
The Ether-based journalism platform, Civil, has been in the media’s spotlight recently however despite the attention, the crypto project has not been able to attract a sufficient number of token-buyers.
According to a recently released report on the project displaying figures of current CVL sales, chances of success looks bleak. Matthew Iles, Civil project founder, stated that these results were not anticipated, and fears it might not work out.
With Their ICO Ending Soon, Civil Pushes to Reach Funding Goals
In order to reach their minimum cap goal, the Ether project must raise $8 million, however, stands in the range of just over $1 million received from 680 investors that bought into the token’s ICO since its initial launch in September. The funds raised were supposed to be used to support operations in Civil newsrooms in addition to journalistic contributions. However, if they fail to raise sufficient funds, the project mentioned reimbursing investors with their initial contribution.
The majority of token sales came from ConsenSys, a blockchain software tech company led by Ether founder, Joseph Lubin. According to reports, the company processed two purchases in addition to supporting the project last October with a backing of $5 million becoming the Civil projects majority investor.
The CVL coin supply does not exceed $100 million tokens, $33 million of which are kept in holding by the Civil project which will be distributed to early contributors, employees, and advisors. The same percentage will be given to early partners who helped promote the platform’s mission since initially launching. The remaining $34 million would have been used to sell to traders in order to raise funds, particularly expecting major investors to get involved including ConsenSys which unfortunately has not yet been the case.
Other Obstacles in the Way
Critics believe one of the major obstacles keeping Civil from kicking off to a strong start is that the platform only allows buyers to purchase tokens that intend to utilize them on the Civil platform. In order to buy, investors must first participate in a test that has been noted to be quite difficult to pass if not deeply familiarized with the ins and outs of cryptocurrency. This process has further excluded the sale successful sale of CVL from the majority of buyers who might have helped the platform reach its goals.
In addition, Civil has been affected by regulatory policies emplaced throughout the last year particularly regarding the recent decline in success of ICOs. Iles stated that the team will be doing everything it takes to help reach their soft capital goal by Monday and will utilize the major support from ConsenSys to self-sustain until marketing strategies begin to pay off. However, Civil will need to discover a better approach to the distribution of its native token CVL. According to Bitcoin Magazine, a spokesperson for the project explained that buyers must be able to prove they are not merely speculators, acknowledging that their current system does not foster a continuous flow nor is it easy. The project plans to announce a follow-up report on the 16th of October followed by the launch of a governance platform.