Koinify to Stop Token Sales Ahead of Platform Pivot

Koinify has announced that it will pivot away from offering a token sales platform for decentralised applications, citing a lack of returns.

AccessTimeIconMay 29, 2015 at 4:40 p.m. UTC
Updated Sep 11, 2021 at 11:42 a.m. UTC
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Koinify has announced that it will no longer offer a token sales platform for decentralised applications (DApps).

The startup indicated that it would "provide assistance" to startups already slated to sell their software tokens on the service, including the decentralised prediction market Augur and the blockchain-based trading card game Spells of Genesis.

Koinify declined to elaborate on the transition in interview and in its official release, though CEO Tom Ding hinted that the company's platform could remain somewhat similar with its technology being applied to a "broader market".

Ding told CoinDesk:

"We increasingly realize that the DApp market, while exciting, is too niche of a market for us at this stage to sustain standalone as a business."

Ding declined to specify when a product would be available, but noted that Koinify will be increasing the size of its team as part of the pivot away from its original focus.

"The fundamentals – including our belief in blockchain, and using blockchain as our underlying technology innovation, and trying to reinventing business and organizational structure, has remain unchanged," Ding continued.

In a separate blog post, Koinify asked users to withdraw tokens purchased during the GetGems crowdsale from its platform by 30th June.

Ding dismissed rumors that the move was due to regulatory pressure given the ongoing uncertainty around cryptographic tokens and their use in value exchange.

"Our legal team was very comfortable with our existing model," he told CoinDesk.

Launched in September 2014, Koinify raised $1m from investors including IDG Capital Partners, zPark Ventures and an AngelList syndicate headed by VC investor and Bitcoin Foundation board chairman Brock Pierce.

Business exit image via Shutterstock

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