Huobi ‘Concerned’ ThunderCore IEO Has Damaged Their Reputation
A Huobi executive has declared that the company is worried over a recent controversy surrounding the ThunderCore IEO, and that it may have damaged the reputation of the Huobi Prime token sale platform – as well as the brand as a whole.
At a Huobi event held in New York this week, Will Wang, head of Huobi’s business development and investment in North America, told Crypto Briefing they were aware of investor criticism surrounding the ThunderCore IEO on Huobi Prime Lite – a token sale platform with short listing cycles – which took place earlier this week.
ThunderCore (TT) is designed as a scalable blockchain network, able to process more than 1,200 transactions every second, according to the project’s website. Since its inception in Q3 2017, the project has had four investment rounds, including the Prime IEO, which have raised a total of $50M for the project.
But ThunderCore has faced criticism from many of its prominent backers because the asking price at the IEO was far below the price at the final SAFT (Simple Agreement for Future Tokens) round, a token sale for accredited investors.
Huobi IEO Wants Stability
The ThunderCore controversy could not have come at a worse time for Huobi, which has now unveiled the third project which will launch its token on its platform, as Crypto Briefing has reported.
Known as Reserve, the project wants to become a universal store of value through the use of its algorithmic stablecoin, pegged on a 1:1 ratio with the US dollar. Huobi hopes the IEO will allow them to break out of the domestic Asian market and target English-speaking jurisdictions, excluding the USA.
Investor opprobrium has so far been targeted almost exclusively at ThunderCore. Wang said that although the Prime platform’s main priority was to protect investors, they have a responsibility to “remain neutral” in this dispute. “We did our due diligence and we did our analysis”, he said, “ultimately we still believe in Thunder’s long-term potential.”
But keeping quiet may be less about neutrality, and more about realpolitik. If Huobi hopes Prime will be the vehicle to help them become a globally recognized and popular service, the controversy surrounding one of their sales will be as welcome as a wasp at a picnic.
If, as Abilla suggested, the $0.015 asking price was Huobi’s idea, then there is even more reason to stick to the sidelines. Prime may be more of a marketing tool than a serious investment vehicle, but that’s not how ThunderCore’s investors saw it.
Hopefully, the Reserve IEO, planned for later this month, will run smoothly.