we are sincerely sorry to announce that we decided to end our collaboration with Crypto Advice and QuickX, even though our token sale is not over yet. The reason for this important decision is that the terms and conditions offered by Crypto Advice are far from being fair and clear, to us, and to the people that wanted to invest in our project.
We would like to give you a brief history and a more detailed explanation of why we took this hard decision. As you know, we had our first ICO in November and December of 2018, at a moment when the market was really difficult and we didn't reach our soft cap. So we had to reimburse all our investors and although we had a functioning product, it was extremely hard, to execute our vision without funding and to come up with a product that was in line with our expectations. We were thinking about dropping the entire project in February of 2019.
At this point, QuickX founders approached us and offered help with the fundraising via the Crypto Advice platform. Since QCX already had a successful ICO through Crypto Advice we were assured by QuickX that they were a reputable and a transparent company. We accepted this new opportunity so we could give birth to our exchange.
The idea was to create a new token that would be sold exclusively on Crypto Advice in order to tap into their community of investors. We would then do roadshows, video conferences, and AMA sessions in order to explain our project to the Crypto Advice community and promote the token sale, which we indeed did during our roadshow in European cities of Maribor, Vienna, Koln, Berlin, and Warsaw.
But along the way, we discovered that the conditions Crypto Advice has offered were dishonest, not only for us but also for our community and investors.
First, during the phase 1 of our token sale, investors could buy our tokens only with QuickX tokens and as for the other phases, investors could buy 40% with QuickX tokens and 60% with BTC. Contrary to our previous agreement Crypto Advice changed the initial terms and offered us only the agreed amount in BTC not counting the QCX part of the collected amount.
Secondly, Crypto Advice wanted full control over the smart contract of our token and refused to give us a clear answer about what they intended to do with the portion of the raised funds in QCX. Besides that, they clearly stated that the original token distribution (15% for the consumer protection funds and 25% for Ecosystem Development) is to be kept by them, again in contrary to the original agreement.
Last but not least, was the fact that the QuickX team started to get involved in the ownership of Cryptonity, and tried to influence top management changes within our company. And since the beginning of our agreement, only until recently, we never had direct contact with Crypto Advice without QuickX founders acting as intermediaries between us and Crypto Advice, which management structure is still unsure to this day. (We suspect QuickX Founders to be CryptoAdvice Administrators and Owners)
Because of the above reasons we have decided to step away from our collaboration with Crypto Advice and QuickX. Although not an easy decision, since without proper funding our project probably won't continue, but we prefer to lose our credibility as good entrepreneurs rather than to be involved in a mechanism that we find dodgy and not transparent to our investors.
Cryptonity, to this day, hasn't received any funds from the token sale, which has been exclusively sold on the Crypto Advice platform. We urge all the investors that participated in the ICO to ask for a refund on their investment from Crypto Advice. Again, we are sincerely sorry for the inconvenience caused and we hope that everything goes back into order as soon as possible for everyone.
Thanks to our team of lawyers at BruzzoDubucq who guided and advised us to make this decision for our own safety. We have all the evidence of what we say, you can contact us for more information.
The Cryptonity Team.