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HomeCrypto‘Fan token’ company Socios accused of crypto price manipulation

‘Fan token’ company Socios accused of crypto price manipulation

Alexandre Dreyfus, CEO and founder of fan token site Socios, has been accused of refraining from paying to maintain the price of Chiliz (CHZ), the cryptocurrency used by the Socios community. Off the pitch..

Fan tokens are associated with the actual sports team, creator, or artist, and token holders have access to a dedicated fan club where they can vote for decisions within the community. In the case of Socios, the platform is sports-centric, and users buy Chiliz to buy fan tokens that represent different teams such as soccer, soccer, and motorsport.

As reported by Off the pitchDreyfus is said to have failed to pay the agreed shares of Chili’s to some of his advisers in exchange for approving the cryptocurrency.An unnamed tech executive said Off the pitch He states that he only got “a part of what was promised,” and claims that Dreyfuss began “avoiding all communication with advisors” in September 2020.

Why is he not paying an advisor? Internal message from Dreyfus Off the pitch Indicates that Dreyfus did not want Chiliz’s value to be a tank. “We also need to protect investors,” Dreyfus wrote in a screenshot message. “When you give free tokens, people can sell at any price-it doesn’t matter to them.” He then bought Chiliz, a “real investor” whose advisor sold the currency. He said he may have lost money as a result.

Introduced by technical executives Off the pitch Confirmed by three other advisors who were also allegedly unpaid, and by one of them.Curiously, that one adviser contacted Dreyfus again — the context of their conversation is unknown — and reported. Off the pitch All four advisors were finally paid in full. It’s unclear if there are still other Chiliz advisors who remain unpaid.

“I’m sorry that some of the advisors who worked with us in the past weren’t paid in a timely manner. We fixed this directly with them and maintained a good relationship today. “We do,” said a Chili’s spokesman. Off the pitch.. “The contract was made before the company was founded and was not listed on any exchange at the time, so CHZ could not be awarded directly. For clarity, this delay is unacceptable. It’s a thing, not the way we want to run a business, but below the standards we hold today. “

The staff who were supposed to receive part of their salary in Chili’s weren’t very lucky. When Chiliz’s value soared, one employee claimed he couldn’t cash out the $ 10 million that Dreyfus allegedly owed. Chiliz later led a new contract to replace what was previously signed by an employee, resulting in less cryptographic assignments, Off the pitch Report. An employee who was in debt of $ 10 million would have earned only about $ 60,000 as a result of the new contract. Another employee was reportedly dismissed after talking to the media about the issue.

Chiliz responded to Off the pitchReport In a Medium post“Does not reflect the truth of the problem.”

Updated to ET at 6:05 pm on March 12: Updated to add a response from Chiliz.

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