San Francisco-based blockchain project Thor Token is shutting down as the project “was not able to gain traction and achieve commercial success.” The news was announced on 9th April by co-founder and CEO at Thor, David Chin.
The announcement came after several days of conjecture after Thor locked its Telegram to comments and purportedly offered a former employee the company and its 50 million tokens for US$10,000.
The post states, “We are incredibly proud of the groundbreaking work the Thor team accomplished – delivering useful and accessible products for 1099 gig economy companies. Unfortunately, we did not achieve the commercial success we were looking for.”
The post highlighted “regulatory challenges” as a major hurdle that restricted the company from attaining its goals. The post notes the Thor project had been working privately to raise further fund to rectify the lack of sales or fund.
Two months prior to the announcement, the firm dismissed 50% of its staff to correct the cash flow. The firm noted that it had signed the three agreements that presented more than 8,500 contractors and it had a channel of over $1.8 million dollars of Annual Recurring Revenue, which will be shutting in sales deals over the next year.
In addition, the closing announcement said, Thor has been unable to carry its operations. Ultimately, it has become clear that the only course of action for Thor is to shutter its doors.
Speculations and concerns started to rise within the community when the former chief designer Matthew Lawler posted a series of videos criticizing the team following the staff dismissal on February 5th. He claimed that Thor had “an intention to abandon crypto and abandon the THOR token so that they can go sell a business payments platform to businesses.”
Director of legal and business development for Thor, Ben Lambert, responded to Lawler’s comments on the Thor Telegram channel and claimed that Thor believes in long term growth and sustainability while Mathew would like to utilize the THOR token immediately without weighing the legal/regulatory impact.
On April 5 Thor Telegram was locked for comments. The community tension increased following the Telegram issue.
Concerns and allegations deepened that Chin and Moravec had provided to sell Lawler the Thor Company and its 50 million THOR tokens for US$10,000 that same day.
Alleged conversation between Moravec and a Thor community member outlining Moravec calling Thor a “failed project” due to a “lack of sales,” was circulated. Also, questions rose regarding the Thor’s connection to Permian Capital Management, a digital asset hedge fund allegedly founded by Chin and Moravec.