- Substratum CEO issues conflicting statements on the location of tokens
- Justin Tabb denies the startup is in any crisis
- The team must struggle to clear its name
A massive storm is underway following conflicting statements from Substratum regarding the whereabouts of cryptocurrencies they collected during their Initial Coin Offering (ICO). There is information that someone is becoming economical with the truth, something that could hurt their course.
Tokens Sold on February 27, 2019
Substratum’s CEO said in a recent interview that the Litecoin (LTC) and Ripple (XRP) they collected during their ICO were safe and sound in cold storage. However, it is now emerging that the same LTC and XRP tokens may have been sold in bulk on February 27, 2019, via Kraken cryptocurrency exchange.
— William McKenzie (@wbm_97) March 11, 2019
Should this be the case, Substratum CEO will soon find himself in the unenviable position of telling the community what to believe between his assertion about the 2017 ICO allocation and his current statement.
Hired Day Trader to help the Company
Anxiety hit the crypto community and Substratum investors in particular in December 2018 when a video emerged showing a man going by the name Tabb stating that the startup had hired a day trader to help the company that was struggling financially. In the video that went viral, Tabb says:
“We are going to not cash-in, but begin basically attempting to trade up so we can further our position as long as possible […] we are taking advantage of the trader we have full time and actively trading a portion of the Ethereum so we can trade up.”
Dug Themselves into a Corner
However, in the interview, Tabb vehemently denies the company was in any financial crisis and goes on to claim the startup has made profits every time they have converted crypto to fiat to help build up the business. Tabb stated:
“While we utilized Bitcoin and Bitcoin Cash upfront to get the business up and running, all those upfront costs were associated with building the business, and we still have roughly half the Ethereum that we raised during the ICO and nearly all of the Ripple and Litecoin we raised are still stored in Cold Storage.”
The way things are going now, Justin Tabb and his Substratum leadership team seem to have dug themselves into a corner, out of which they must struggle to clear their names to assure the crypto community they are worth the ink their whitepaper is written in. Only time will tell which direction the circus will take.