As per a report published by ’The Next Web’, Indiegogo token brokerage partnered MicroVentures recently sent out associate emails to the ICO’s investors, informing them that it had not distributed the funds to the Fan-Controlled Football League ‘FCFL’.
Citing restrictive regulation considerations, the Indiegogo aforementioned it had canceled the ICO offering and would issue a full refund to its contributors.
The company further mentioning to its investors stated that:
“During this point, your investment wasn’t distributed to the company. This was done to confirm that MicroVentures navigated through the restrictive climate before finalizing the ICO offerings. Whereas we believe that the initial path taken was compliant, for now we have decided a best way to make sure returning all the investments.”
According to FCFL statement cited by ‘The Next Web’, that refund was issued without the company’s approval and also the FCFL had not been “given a legitimate reason on why MicroVentures cannot complete the offerings.”
Earlier this month, the FCFL revealed a journal post stating that it’s delaying its public ICO till the company introduces a fully-functional platform to demonstrate it to the regulators that its tokens really have utility and aren’t just speculative investments.
“After several, several hours spent with our legal counsel and advisors we have a decided that the simplest course of action was to delay our FAN Token generation event (TGE) till the launch of a completed FCFL platform with which the FAN Tokens would interact.”
The reversal of the FCFL ICO raises questions on the future of Indiegogo’s emerging token sale listing service. However for now, though, it’s not clear whether or not the company would create future utility token ICOs offering to its retail customers too.