Several Flux Investors Pull Out Following Announcement

Several Flux Investors Pull Out Following Announcement

Disclaimer: Lucky Trader is a sponsor of Ryan Carson's Daily Dose Spaces, and Lucky Trader will be a launch partner for Carson's upcoming project.

Several of the original investors tied to Ryan Carson's new Flux project have pulled out after concerns were raised about the way the investments were promoted. Carson will be hosting an AMA via Twitter Spaces today at 10:00 AM ET to address the concerns.

❗Why It Matters

Carson introduced a list of heavy hitters who had invested in his upcoming NFT project, Flux, yesterday, and some are alleging that this was done without permission, before investments were collected, and done in a way meant to encourage others to invest in the project. 

🔎 The Deets

Specifically, Twitter user @Gee__Gazza noted that with 100 investors and a $160k minimum investment, the project's target fundraising amount should be $16m, not the $10m listed on the Flux website. It was then uncovered that many of the initial investors had agreed to contribute amounts far lower than $160k, and had not yet wired the funds. 

🎤 Investor Quotes

  • Luca Netz: "For the sake of transparency, I didn't sign anything. I didn't fund anything. I thought I was just helping people in the space and being friendly. I don't know much about the details, but I've made it clear to Ryan that I don't want to be apart (sic) of this."
  • gmoney: "I don't feel comfortable with how this announcement was made before fundraising was complete, and the tactics for fundraising, and thus am no longer committing to the deal. I do wish Ryan the best and hope he crushes it."
  • j1mmy: "After carefully listening to @ryancarson and everyone else today i've decided not to move forward with the investment i intended to make in Flux."
  • andr3w: "Hey everyone, for the sake of transparency, I will not be continuing with my initial verbal 10k commitment for Flux."
  • AJ Vaynerchuk: "Ryan is someone I've known for 15+ years and I plan to call in the morning."
  • Shira Lazar: "I have loved what @ryancarson has built with the Daily Dose and the vision he had shared for the next stage of web3, but I am disappointed with this situation and it does not presently meet my standards for ethical investing."

🎤 Carson Responds

Carson responded to the various claims this morning around 5:00 AM ET, stating that:

  • The current investors had committed between $10k-$160k each under Rule 506(c), "which means I'm allowed to publicly raise funds, as long as we only allow accredited investors."
  • It's standard practice to secure a handful of early investors at small check sizes before opening things up more broadly.
  • He offered several friends the chance to invest at only $10k, below the stated $160k minimum investment.
  • He received permission to publicly share names of the first two investors via "co-tweeting."
  • As he received more commitments, he assumed that others would also be comfortable sharing their commitment to Flux after co-tweeting with Ryan.

🔜 What’s Next?

  • Carson will host an AMA today at 10:00 AM ET to address concerns and answer questions about Flux. Join the Spaces here.

🕳️ Go Deeper


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