On May 26th, Qihan Lin began introducing Troy – a self-proclaimed crypto brokerage and IEO development on Binance – to a group of Chinese investors during an AMA on WeChat.
TROY Token IEO sale on Binance
“We provide leading brokerage services to institutional investors and professional traders through a revolutionary financial technology product called TroyTrade, spot trading, leveraged trading, etc. leverage, derivatives trading, data analysis, asset escrow, mortgage lending, and other functions in one account,” said Lin.
The conversation was then interrupted when Fen Wang, the founder of the Consensus Lab crypto fund, posted a series of messages accusing Troy of fraud and embezzlement of investor funds.
“Troy did terrible damage to the Consensus Lab. This is the only project we invested in last year and lost everything. “
“Your reputation has collapsed and we are going to file a lawsuit. In fact, your fundraising is like a scam. “
“Personally, I invested $ 300,000 while the hedge fund only spent $ 1 million.”
Within hours, screenshots of Wang’s news were circulating in the crypto community in China, and several other funds also exposed their own losses in Troy. One investor, Jun Zhang, posted on Weibo that his fund had lost 70% of its investment in Troy. According to a screenshot by BlockArk CEO Allen Su, his fund lost 50% from investing here.
These investors have also set up a new chat group to discuss their plans to make amends for their Troy losses. Wang announced that he would take legal action against the project.
The market performance of Troy’s native token TROY could be one of the reasons why investors are so optimistic.
Last August, Troy raised “millions” from BlockVC, Consensub Lab, NGC Ventures, and several other investors. In December, an IEO was then carried out via Binance, which sold TROY tokens for USD 0.005 each. According to CoinGecko data, the price has been in a downtrend since launch and dropped from $ 0.005 initially to $ 0.0041 at the time of the stress. TROY fell to $ 0.001 during the Black Thursday market crash in March.
The price of TROY has fallen 63% since it was listed | Source: Coinmarketcap
Some investors pointed out that Troy’s relationship with BlockVC was a cause for concern and allegations of fraud by Wang.
As claimed by Wang, BlockVC is not only an investor in Troy, but also the company that is running the project. The fund later convinced several investors to put money in Troy without disclosing its relationship with the project.
“Some people at BlockVC hatched the Troy project and bought it themselves, no one else.”
Some investors claim that they only invested money in Troy because of BlockVC. In addition, some BlockVC Limited Partners (LPs) have also complained that the fund has invested 30% of its own funds in Troy without clarifying the relationship between the two parties.
Two days later, the story took a dramatic turn. On Thursday, Wang posted a statement on social media praising BlockVC and Troy, claiming that there had been some “misunderstandings between BlockVC and Consensus Lab.”
“BlockVC is an excellent team in crypto investing and research … Consensus Lab will continue to work with BlockVC to support projects and their team.”
Wang said the team behind BlockVC and Troy visited him the day after the AMA, explained the relationship between the two companies, and showed him some of the “positive strides” Troy had made. However, details of the conversation were not disclosed.
BlockVC founder Kevin Xu also posted a public announcement on Weibo confirming the misunderstanding between Troy and Consensus Lab.
“As an investor, we sincerely hope that the projects in which we invest will grow and become a driving force for the development of the industry. At the same time, as Troy’s leading investor, we will continue to grow business brokerage services in the crypto asset industry and help Troy perform better in the future. “
Disclaimer of liability: This information is provided as a personal blog, not general information or investment advice. We are not responsible for your investment decisions.
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