The founders of BlockCAT made promises similar to those of Sparkster, another ICO holder that funnelled millions into an unrealised platform. They openly stated that they were building a “visual smart contract designer” that would allow anybody in the world to create and deploy smart contracts to the Ethereum blockchain without having any knowledge of code. Again, very similar to Sparkster’s promise of creating toolkits that a user could utilise to construct tools without any prior knowledge.
However, BlockCAT have currently made very little advancements along the path of their roadmap and have created just one (badly performing) product. The value of their coin has plummeted by approximately 98% and is now almost untraded on the few exchanges it’s listed on. The token has lost all utility and the 7m USD raised in funds has been absorbed without a trace.
This class action is accepting class members
The whitepaper stated that CAT (the token) would be used:
- As a safe, cost-effective and more flexible payment method for contract deployment.
- In a staked form, serving as the primary mechanism for verifying third party market place smart contracts.
However, BlockCAT don’t make it entirely clear that you’ll need to use CAT – and only CAT – to pay for verification and deployment of the smart contracts. This immediately limits the footfall of their platform, as a general user not having access to CAT wouldn’t be able to get CAT to use on the platform.
Given that the coin has almost no value, it’s null and void in regard to being used as a payment method on the contract platform. It’s simply not worth anything.
As stated, the coin was designed to be use on the BlockCAT marketplace, a venture which has failed to come to fruition. The whitepaper stated that CAT shouldn’t be used for speculative investment and is a functional utility token only. However, given that the marketplace is all but abandoned and the coin isn’t being traded, it has lost any opportunity of realising that one, specific utility.
The idea behind BlockCAT’s project isn’t original by far. There are smart contract ‘generators’ that already exist and are available through a browser, such as EtherScripter. While the premise of smart contacts may seem fashionable now, the ability of a user application is still under question. Put simply – BlockCAT isn’t a necessary product.
BlockCAT confirmed that the funding received from the ICO would be used as follows:
Given that it has been a year since anything substantial has been released, it’s safe to say that the 30% of the funding directed at platform development is not being spent as promised. There have been damning comments on Twitter, accusing the CEO, Eric Huang, of ‘destroying’ the money invested in the scheme, and condemning BlockCAT as a ‘student project’:
Yes, with the idea of deploying smart contracts on the Ethereum blockchain, BlockCAT would require blockchain implementation.
Standard ERC20 token – no innovation whatsoever.
BlockCAT succeeded in drawing 7m USD worth of funding from its investors and has so far provided them with a product that nobody uses and a coin that’s worth almost nothing. The management are notorious for blocking and ignoring those that question the BlockCAT performance and the updates they provided sporadically are nothing more than a paragraph or two of empty text.
If you have been financially impacted by BlockCAT’s ICO, please join this class action with confidence.
- MR. ERIC HUANG
BOARD OF ADVISORS:
- MR. RAMON LAWRENCE
- MS. JAMIE MCKEE-SCOTT
- MR. GRAEME DOUGLAS
Approx. funds raised:
About this ICO:
– 98% loss of value
– Abandoned platform
– Unoriginal idea
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