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Last week, The Block reported on RChain's recent demise. RChain was a blockchain platform project that once contended with other powerhouse platforms like EOS, Tezos, and NEO. RHOC even ranked in the top thirty projects on CoinMarketCap at one point. RHOC is now ranked at 199th, sitting at $0.03 at the time of this writing.
https://twitter.com/GuavaAirlines/status/914342011808780289
- GuavaAirlines
https://twitter.com/APompliano/status/1064173021009797121?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1064173021009797121&ref_url=https%3A%2F%2Fihodl.com%2Fanalytics%2F2018-11-20%2Fanthony-pompliano-crypto-funds-close-ico-go-bankrupt%2F
- APompliano
According to The Block's research, RChain conducted several questionable business moves, which could lead to the project's demise.
The Block reported on one RChain investor who stated a great analogy.
I’m not saying it’s not a good piece of tech. But it was a crazy amount for what we had. Let’s say you’re building a house for yourself and it’s $1m. But then you find a nice piece of furniture and you blow half a million on it. And now you don’t have enough to finish the house and you’ve completely destroyed the main project you’re working on.
Although if RChain did not launch its mainnet by the end of March 2019, Pithia apparently had the right to end the agreement and keep any leftover RHOC tokens, according to contract revisions from August 2018.
After the August contract revisions, RChain had to move its mainnet start to April 1st, missing the deadline by one day. Pithia then proceeded to end the agreement with RChain.
One of RChain's investor's stated Meredith as intelligent, but that he lacked business ability. Meredith has allegedly not given up on the project yet.
RChain Cooperative is not bankrupt nor even close to bankruptcy [...] We have restructured our deployment of capital assets to focus almost entirely on development [and] [t]he characterization of both our liabilities and tax estimation is incorrect and grossly overstated.The blog post mentioned RChain did not have investors, but only "members", according to their co-op model, and that RChain never actually had an initial coin offering (ICO).
RChain also went on to describe confusion regarding Immersion technology and the music app RSong (associated with the $23.5 million investment mentioned).
RSong does not “rent songs,” nor is the Immersion technology 'helping build' the DApp. We feel that Immersion’s technology offers an important component to RSong that subsequently brings great value to what we are creating throughout our ecosystem, yet the coding behind RSong stands on its own. (See here and here.)RChain mentioned several other rebuttals to The Block's article, ending their post with a positive note.
This is not to say that the road hasn’t been rocky as we have worked hard to build a new decentralized world compute platform from the ground up. Thanks to the robust community we have made great strides in 2018 and will continue to be the in the forefront of technical innovations in this new blockchain industry.
*CryptoInsider is sponsored by Blockmodo. As part of our arrangement, we may occasionally link to them and quote them when appropriate. This is done at the discretion of CI staff and CI sponsors have no say in any editorial decisions made by CI.