Neufund, Berlin-based security token startup, has announced that it is suspending its fundraising campaign and also putting aside its token offering project, citing regulatory uncertainties.
“After countless meetings between entrepreneurs with politicians and financial authorities it became clear that while there are high demand and opportunity for this type of change, the authorities have stifled this plan, blocking the innovation in its tracks,” the company wrote.
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Zoe Adamovicz, co-founder and CEO of the company, admitted that security token offering platforms are operating in a regulatory grey area. This put them under a major risk of a sudden crackdown.
Though, according to Adamovicz, Neufund was never at the end of any regulatory action, the company is taking the harsh decision to protect the future of its business as the regulators shy away from responding upon the firm’s request for guidance mentioning “fear of new technologies.”
Nefund was launched in 2016 and helped companies raising around $19 million through equity and security token offerings (STO). Last year, the company also helped a company in a blockchain-based initial public offering (IPO).
Regulators are neither showing a green nor red light
“The barriers built by regulators reinforced with the lack of dialog, especially during the current economic and social situation made us review our product roadmap and the platform’s future,” the company stated.
“Today we announce that we’ve decided to pivot, put aside our Equity Token Offering project, and pause upcoming fundraising campaigns.”
The company mentioned that it will allocate its “time and resources” in the development of a new product, but did not provide any details of that.
“We are hopeful with the launch of our new product, that we will open new opportunities and continue bringing value to our investors and community,” Neufund added.