An update on the EncryptoTel crowdsale
Hello everyone, and thank you very much for your support over the course of our crowdsale.
We would like to state our position on the unexpected investment received yesterday, and why we decided to extend our crowdfund for 24 hours.
Since the launch of our crowdsale, our users have experienced display issues regarding balances and transactions within our ICO portal. This led many investors to delay making a deposit until the problems were fixed. Despite the efforts of our ICO partners, Incent, this was not possible. We also expected that the total collected in USD equivalent would fluctuate above and below the $3 million cap, due to the exceptionally volatile BTC and WAVES markets at this time. Consequently, we took the step of extending the crowdsale for a further day — the approximate period of time the portal was affected by DDoS and other problems — to allow last-minute investors the chance to get in.
When we began our crowdsale, we never expected our final cap of $3 million to be reached — let alone so quickly — and the level of investment in the final hours took us by surprise. In particular, two supporters have invested a huge amount of WAVES, one on the first day of our crowdsale, and one on the last — this second one increasing the total by more than $1 million above our intended cap. (From the blockchain, it appears that the first and second deposits were from different investors.) When we realised that there was little possibility of the USD total dropping back below $3 million, we closed the crowdsale for good.
‘As an escrow for Waves, I can assure EncryptoTel investors that the additional funds raised after the ICO cut-off time will be used in an appropriate way by EncryptoTel team. The decision to prolong the ICO for 24 hours was quite reasonable, since the investment target was reached through an appreciation in the exchange rates, and many investors were unprepared for such an abrupt end to the crowdsale.’ — Sasha Ivanov, CEO of Waves and escrow for EncryptoTel
Whilst this second large deposit has been controversial within the community, this was an extremely generous gift to our project, and thanks to this generosity we now have new opportunities to develop our product and company. I therefore want to express my immense gratitude for the patience and trust shown to us during the ICO. All the investments received above the expected amount will be spent exclusively on the development of our product and further expansion of the stated functionality.
Distribution
Our next step is to distribute tokens to investors. This will require a thorough audit of all balances and a final calculation of ETT token supply, in order to issue the asset accurately. (Token supply is not fixed in advance for our model, but depends on the amount of funds raised, so the additional funds mean there will be more tokens rather than each investor receiving each fewer of the same supply.)
We estimate this will take around two weeks. When the process has been completed, will will publish instructions for how to withdraw them from the ICO portal.
