Factom liquidates the company. Why did the project go broke?
To launch your own successful startup in the crypto industry, you should carefully analyze both successful and not successful experience of other projects. One of the ambitious, crashed companies was Factom. This project had every chance of success and attracting multimillion-dollar investments. But today, the company announced the start of its own liquidation. What is the reason for the failure? How not to repeat the sad experience of Factom? Today we will answer all these questions. So let’s get started.
A little bit about the Factom
First of all, you should know that Factom is one of the very first projects that conducted an ICO. It was this company that set the trend for the preliminary sale of coins to investors. The company has been operating since 2014, providing data security. Serious entrepreneurs, including crypto companies, resorted to the services of the company. In 2015, the largest, at that time, ICO took place. During the sale of their shares, Factom received money in Bitcoins, collecting 579 coins.
But today, a resolution was issued by the head of the company, who noted that due to the lack of additional financing, the company begins liquidation. All property of the company will go to creditors. Most of the cash will go to FastForward, which allocated Factom a large portion of the capital. The same applies to intellectual property, i.e. security developments. The creators of Factom no longer have any rights to their own development. In a word, the company experienced a sharp rise and an equally sharp fall. Now the enterprise cannot be saved anymore, since the expenses exceed the profits and the company does not expect assistance from the side. Let’s highlight the main Factom errors. After analyzing the negative experience of the company, each novice entrepreneur is more likely to take the company to a new level.
What exactly happened to the enterprise?
Analysts highlight the following enterprise flaws that drove the company down:
- Inability to adapt to market conditions. The company really created a stir in 2014, when the company developed a reliable system that protects most digital business sectors. But the methods of hacker influence have steadily progressed, and Factom has not adapted to the realities of today. That is why the company’s technologies are outdated, the methods are no longer relevant. Try to gradually develop your own product so that the offer does not lose relevance;
- Keeping money in unreliable assets. We wrote above that the company conducted an ICO and raised money in Bitcoins. And we all remember how the first cryptocurrency rose sharply, but then fell in price. That is why the main cash reserve of the enterprise sharply decreased, a large share of the budget was lost due to jumps in the exchange rate. Always keep money in stable currencies;
- Inadequate financial analysis. The crisis for the company came as a complete surprise, all due to the fact that the sales and valuation department of the enterprise worked with insufficient efficiency. Constantly answer questions in style: Can my start-up survive the crisis? What to use to stay in the crypto industry? This rule also works for other business areas;
Now you know the reason for the failure of the once famous startup Factom. If you yourself are doing business in the crypto industry – be sure to consider the series of tips that we have presented above. These recommendations are used by all serious companies, so take an example from large enterprises and improve your own business.
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