Decentralized platform of the predictions of the Augur immediately after ICO in 2015 sold off almost everything available at the time reserves in the cryptocurrency Ethereum at a price of $0.7 per 1 ETH. In total, the project team has sold about 1 million ETH, then received $700 000, Cryptoslate writes citing managing Director Danhua Capital, and researcher in the field of cryptocurrency Davie van.
If the transaction took place in late 2017, when ETH came to the historic highs and traded between $1000 and $1500, the team Augur could get for the same amount of coins up to $1.5 billion Even with the subsequent correction and the current price of ETH, this amount could be at least $200 million.
This is very tricky
1. Augur raised over 1M ETH when price was $0.7, converted almost all right away which would worth at least $200M now, completely missed the upside
2. If you build on Ethereum,by default you believe in its value. Selling off seems to conflict with that🤔 on!!! https://t.co/kbKYwJbnhf
— Dovey Wan (@DoveyWan) 3 September 2018
According to the analyst, the fact that the basis of the Augur is the technology of Ethereum, should mean that the project team believes it is. Selling ETH, however, puts this statement into question.
The Creator of Augur Joey Krug responded to these statements, stressing that the project in the first place is a startup, not a hedge Fund focused on profitable investments.
You should invest in or start / run a fund or manage your own capital, but crypto projects shouldn’t be doing this
— Joey Krug (@joeykrug) 4 September 2018
According to him, 90% received during the ICO funds Augur converted to Fiat to have the ability to Fund further development. With this purpose, users who believed in the project and invested in it.
“If you want to speculate on the price of cryptocurrencies, you should invest in the relevant Fund or start one. Cryptoprocta don’t have to do it,” said Joe Krug.
His opinion agrees Scalar Capital co-founder and Advisor 0x Project Linda CoE. According to her, the decision Augur to use funds according to their main purpose was completely right, and that’s exactly what she recommends start-UPS, with which it cooperates.
You and the Augur team did the right thing and I have been advising projects to do the same. It’s easy to view all of this in hindsight as the price of ETH could have easily gone the other way while you were building.
— Linda Xie (@ljxie) 4 September 2018
Recall that the launch of the core network Augur was held in June of this year. Previously, Joey Krug stated that the Augur is a complex project based on Ethereum, since it’s written on hundreds of smart contracts.