On March 12, Bittrex International, a Malta regulated subsidiary of U.S crypto exchange, Bittrex announced that it was going to conduct an Initial Exchange Offering (IEO) for Raid, a blockchain gaming data startup.
The plan was to help Raid raise roughly $6 million (between March 15 and March 18), for its solution that rewards gamers for providing data that helps the growth of gaming companies globally.
On March 14, however, news first broke out from Bittrex International that the IEO will no longer hold, while Raid followed up with an announcement of its own, citing that they requested the termination of a public token sale that was less than 24 hours away.
Given previous successes recorded by the Binance Launchpad, a similar IEO platform developed by Binance exchange, the eleventh-hour withdrawal by both Bittrex and Raid raised brows on whether the IEO process would meet its end before it takes off.
Well, that outcome seems very unlikely when we consider what we know and what we don’t know about the Bittrex and Raid saga.
What Do We Know?
Raid Doesn’t Have An Ongoing Partnership With OP.GG
In the announcement about the now-canceled IEO, Bittrex highlighted Raid’s partnership with OP.GG, an e-gaming data analytics provider with a large user base, as one of the evidence to show that the project was already on the path to success.
Whatever the reason, it turned out that Raid no longer has a partnership (if it ever did) with OP.GG. The tone of the warning message below found on OP.GG’s website shows that a significant rift now exists between the two firms:
“OP.GG has stopped all potential business discussions related to RAID project and there will be no economic and technical cooperation with RAID coin.
In addition, OP.GG has no intention of developing any blockchain related business utilizing RIOT GAMES data.
OP.GG will take all possible legal measures against individuals or organizations disseminating false facts related to this.”
Bittrex Chose User Safety Over Personal Gains
This is perhaps the most heartwarming thing we know about the ongoing saga. Bittrex forfeited whatever personal profits it may get from conducting an IEO that had all the signs that it will make investors scratch their heads sooner or later.
The exchange pledged in the announcement that it would continue to ensure the integrity of the crypto space, with a line specifically stating that the cancellation “was in the best interest of customers.
Such a transparent approach deserves commendation in the same way we praised Kraken exchange for offering $100,000 to help find missing funds belong to defunct exchange, QuadrigaCX.
Moving forward, efforts similar to Bittrex’s and Kraken’s would be crucial to protecting the global cryptocurrency ecosystem.
What We Don’t Know
Whether Raid Will Push Forward With Its Project
At this point, it is unclear whether the blockchain gaming startup will carry on with its project, by possibly securing a partnership with the same prestige as what it claimed to have with OP.GG.
That though doesn’t seem likely with the project already promising to return funds to those who invested in their tokens before now and locking up its website following the sad development.
What Fracas Exists Between Raid and OP.GG
Going by comments from both parties, it is unclear whether a partnership ever existed or was only at a deliberation stage before Raid hurriedly announced its upcoming IEO.
Also, the conflict of interest behind the alleged separation is unknown and will likely remain for some time with OP.GG promising to “take all possible legal measures against individuals or organizations disseminating false facts (perhaps pointing to Raid or even Bittrex).”
Whatever the case between Bittrex, Raid, and OP.GG, the biggest takeaway from the incident is that putting money in any new crypto project will remain a high-risk investment regardless of how the offering is conducted — ICO, STO or IEO.