South African crypto investors expressed concern about their investments in Fight to Fame token (F2F) following reports that they were not able to withdraw funds.
Token Sale Attracts Over 2,000 Applicants
According to an IOL report, the investors had invested in a token that was promoted by Marius Fransman, a former regional leader of South Africa’s governing party, the ANC. Some media reports suggest Fransman’s company may have received over 2,000 applications from investors that include actors, writers, musicians, and directors that wanted to be a part of the project.
Fransman had planned to use the funds that were raised to promote an international TV reality boxing show called “Fight to Fame.” The report adds that Fransman’s company, F2F SA, would host large entertainment events at venues such as big casinos, where the tokens would be the means to access the venue and also to be exchanged for gambling chips.
One token holder explained that problems started when investors couldn’t access their money as promised. Instead of honoring the pledge to enable withdrawals after nine months, Fransman’s company allegedly told investors they were only entitled to a loan that amounted to just a portion of their initial investment.
This unilateral alteration to the terms and conditions of the investment agreement is what has caused fear among token owners that their funds may not be recovered.
Impact of Pandemic on Fransman’s Plans
Meanwhile, the report quotes Fransman — who appears to acknowledge that this company is failing to honor its pledge — explaining how Covid-19 and lockdowns have affected his company’s plans. He claimed:
Due to the unpredictability and toxicity of Covid-19 or its derivatives, the ICO was not possible at this time. F2F SA was able to reopen the process after this long hiatus. Many people have now requested that they opt-out because of their particular challenges.
Fransman says that his original plan was to allow only individuals to trade their tokens once the ICO launched. Fransman said that his company would be open to the possibility of buying back the F2F tokens on an individual basis.
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