Dissolving a Crypto Project

So far projects had only “exit scammed” in crypto - but what else can you do? Money is out, so you just let the open-source stuff out there and fade out, not much of a choice. Well, some projects are trying to do it differently.

DigixDAO and now Contents Protocol, actually distribute the remaining assets to their “token shareholders” as to say. Check out the latest tweet: https://twitter.com/doveywan/status/1230000803496091648

Since the assets have been trading, one cannot just return money to private or crowd sale participants, as those changed hands many times [we’ll see what SEC has to say on secondary markets in situations like this]. So they split out the holdings among token holders.

To make sure we don’t have pink glasses on, there is just one worry with this: who are the actual token holders? What if the team owns most of the supply basically just nicely-legally distributing ETH into their hands this way? What if this way they are trying to liquidate more tokens and then buyback lower at the distribution?

Multiple scenarios here are possible. i am not saying this to minimize the efforts of the projects, but this is always a good question to keep in mind. What do you think? 🍿