Ethersportz’ founders recognised the value in eSports: the industry has grown at a rapid rate over the last few years and doesn’t show any sign of slowing down. They capitalised on this information and attempted to create a platform linked heavily to eSports that would see users buy in with and win cryptocurrency for playing.
However, a year later the platform is yet to be realised and the majority of the promises made haven’t come to fruition. Further to those facts, the value of their token (ESZ) has dropped by 95% and is currently almost untraded.
This class action is accepting class members
The white paper has been removed from their stripped-down website, but early marketing information and articles show that ESZ promised an “ETH-based intuitive eSports tournament platform”, with the ability to play popular games with friends, win cryptocurrency prizes and rank on leaderboards. They stated the platform would be linked with existing services such as Steam, and would feature top eSports titles such as DOTA, LoL and SMITE.
Today, ESZ is no more than a handful of shoddy mobile titles and a token that is barely traded. AT ICO, the coin was valued at 0.5USD and now sits at around 0.025USD.
Furthermore, ESZ promised that when the company reached a position of full production and profitability (estimated Q4 2018), 50% of all profits from the platform would be paid out to the token holders, proportionate to their holdings. This is of course impossible unless the platform does reach a positive state – at the moment, it doesn’t even exist and likely never will.
As mentioned, the coin was to be used to fund the development of the platform and almost nothing more. The token was supposed to be used post-launch as a reward device on their non-existent platform. However, ESZ clearly stated that the platform would be built with the ability of making and receiving payments in established, much more stable crypto- and fiat currencies. If this is the case, why sell the coin at all? Why not just crowdfund for the construction of the platform?
At pre-ICO, the founder – Matthew Skinner – stated that the sale of the coin would be used almost solely to fund the development of the platform. He also stated that it would then enter the market as normal and be used as a reward for victorious players. In other words, ESZ took 3.5m USD in funding for a product they never created and released a coin to be used as a reward on a product that doesn’t exist.
When examining how detached the staff are from ESZ, we can take a look at Skinner’s Twitter page, which defines ESZ as a “recent project” and nothing more.
Given that the token was created merely as a tool to gather funds, it seems highly unlikely the team endeavoured to have blockchain implementation further down the line.
No, the token is an ERC20 standard token.
Ethersportz has preyed on the impressionable gaming industry to gather millions of dollars in funding, for the development of a platform that hasn’t ever been realised. Their roadmap is vague and has no dates present, and the website has been cut down to display almost no information. Their social media presence is weak, and serves no larger purpose than to relentlessly plug mediocre mobile titles.
If you have been financially impacted by Ethersportz’ ICO, please join this class action with confidence.
- MR. MATTHEW SKINNER
- MR. JOSH LAMONT
BOARD OF ADVISORS:
- MR. TRAVIS REEDER
- MR. REUBEN GODFREY
- MR. MAX OLTERSDORF
- MR. TOBIAS RATSCHILLER
- MR. SAM BUXTON
- MR. IYKE ARU
Approx. funds raised:
About this ICO:
– 95% value drop
– Token barely traded
– Platform not built
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