An ethereum-based messaging app held an initial coin offering today, drawing in more than $50m worth of the cryptocurrency ether – as well as broad complaints from would-be investors.
points to the creation of approximately 1.63bn tokens, with sales drawn from 3,341 accounts on the ethereum network.
Yet the sale quickly ran into headwinds as users began sending transactions to the announced smart contract address before it began. That backlog accelerated as more users tried to purchase tokens, triggering reports of failed transactions and accusations that the sale itself was flawed from the start.
But it wasn't just the network itself that got bogged down, according to posts on social media.
, a popular ethereum blockchain explorer, had to switch traffic to a backup site amid what founder Matthew Tan called "the mania" among buyers.
The rush to invest and the subsequent network congestion problems have become common themes in recent ethereum-based token sales.
The raise comes just days after another ethereum-based project, Bancor, raised more than $150m at then-current prices in what was the largest coin offering to date. Like with Status, congestion quickly became a problem on the ethereum network, sparking complaints and criticism from would-be investors.
Another sale, held by browser startup Brave, collected $35m in a matter of seconds late last month. That sale, too, attracted criticism among those who were unable to purchase tokens given the lightning-fast completion.
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