South African Crypto Token Holders Concerned About Status of Funds, Unable to Withdraw as Promised
A group of South African cryptocurrency investors have voiced concerns about the fate of their investment in the Fight to Fame (F2F token) after they reportedly were unable to withdraw their funds as promised.
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.
Yet as one anonymous holder of the token explained, problems began when investors were unable to access their funds 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.
It is seemingly this unilateral change to the terms of the investment agreement that has sparked fears among F2F token holders that they may not recover their funds.
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 said:
The unpredictability of Covid-19 and its variants has meant that the ICO could not take place then or now, at least until the pandemic starts to dissipate or die down completely. Arising from this hiatus, F2F SA has now received requests from various individuals wishing to opt-out, as they have their own challenges.
Fransman insists his plan was to only allow individuals to trade in their tokens after the launch of the ICO. However, Fransman suggested that his company is willing to consider, on a case-by-case basis, the buyback of the F2F tokens.
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