Investor community400 people jointly named "eight denunciations"

in elastos •  last year  (edited)

Elastos was launched in 2017 and listed in huobi in 2018. In the three rounds of fundraising, a total of 6,960 BTCs were raised (including 460 BTC for angels, 4000 BTC for private offerings, and 2,500 BTC for public offerings). As a star project in the 2018 domestic project, the project was highly anticipated at the beginning of the project. The two founders of the project, Chen Hao and Han Feng, both play a pivotal role in the currency circle and in the academic world. In particular, what happened in the binane voting event in February 2018 made the entire currency circle pay attention to it.

It is in such a big coffee gathering, and the projects initiated by two Tsinghua mentors have made many loyal fans of the community from the beginning of trust, pursuit, and expectation, step by step to today's questioning, despair, and condemnation! We believe that the root cause is that the project side violates the spirit of the contract and has no bottom line of greed. Repeated commitments to the community have repeatedly overdrafted the team's credibility, causing the community to split, large households to sell, and the community and investors suffered huge losses of interests and interests.

Here, the elastos Chinese community 100 people jointly issued the “White Paper on Rights Protection” to the official elastos, and stated the actions of the project side repeatedly against the bottom line of integrity. At the same time, it also solemnly announced to the team, relevant responsible persons and the media in the circle:

I. | Private placement of small group events

August 2017 elastos private placement. After the official raised enough Bitcoin, the official announced that the project had already raised the full amount and ended smoothly. According to industry regulations, even if someone withdraws from the project, the project party should categorize the remaining portion of this part that has not been sold. In fact, the project party has privately pulled a small group to continue selling the quota, pulling people to vote! It harms the interests of early investors and directly maps the greedy mentality of the project side. Immediately after the incident was exposed, it was strongly opposed and protested by early investors! The project party immediately stopped selling, and then the founder Han Feng explained and publicly apologized to obtain community understanding. Early investors in elastos knew that this was what was later called the “Large Group” event.

Second, | arbitrarily change the exchange ratio; promise not to raise the public, and then unilaterally promote overseas public offering
The elastos private placement was completed by the WeChat group before the 1994. At the beginning of the private placement round, the conversion ratio announced by the project party in the group was 1btc: 2000 ELA. Perhaps it was initially felt that it was not always possible to raise the expected number of BTCs. However, after several quota forecasts, there were many investors who were optimistic about the project and were willing to participate. Therefore, the exchange rate was changed to 1btc: 1000 ELA; of course, in order not to cause investors’ dissatisfaction, the community promised to come to the cloud. After the end of the private placement, public offerings are not carried out to minimize the amount of financing and protect the rights of early investors.

However, just two months after the private placement was completed, elastos officially unilaterally tore up the agreement and forced the public offering overseas, without any consultation and notice from the community. The move caused a strong reaction from the community. Many early investors even proposed “returning coins” and asked the authorities to give their opinions. In the end, the elastos team was under pressure from the community and hoped to avoid negative news dissemination before the public offering. So, they made a consolation concession, and adjusted the early exchange ratio from 1btc:1000 ELA to 1btc:1500 ELA; at the same time, the added 500 ELA The lock will be locked for one year until August 2018.

On August 1, 2018, it was the unlocking of this batch of private equity tokens that caused the ELA currency price to drop from 100 yuan to 70 yuan. The currency price has been smashed, which also reflects the extreme distrust of the early investors to the elastos team. They are not optimistic about the prospects of the project and have chosen the collective mentality of fleeing!

Third, | Frequent release is good, the group calls for a single, and their high cash

On February 1, 2018, elastos debuted huobi, and then participated in the voting on binance. At the end of the vote, elastos ranked first with an overwhelming number of votes. It is also because of the favorable expectations of this wave of binance, so that the price of elastos once rushed to 500 yuan. Later, according to an insider who was close to the team, in fact, Han Feng and the two founders of binance had long been in conflict. Han Feng knew very well that elastos couldn’t be binance at all, but used this wave to push up the price and protect himself. The 300 BTC chips invested in private rounds were cashed in at a high level. This statement is a public password in the elastos investor community. Although Han Feng denied this, he did not announce his wallet address for clarification.
A week later, the binance official unilaterally announced that the elastos currency price began to fall in volume due to the elastos cheating. With such a large number of chips fleeing, people can't help but doubt the source of these chips. However, Han Feng frequently released favorable orders in the group, which led many investors to enter the market and take the high position.
The token allocation for ELA is clearly defined in the first edition of the elastos white paper: a total of 33 million ELAs are created in the elastos blockchain creation block, of which 16.5 million are returned to the Bitcoin community and 5 million angel investors Of the 8 million private equity investors, 3.5 million are reserved for the elastos Foundation.

Since elastos adopts a consensus mechanism for joint mining with Bitcoin, the white paper clearly stipulates the airdrop ELA for holders who have already dug 16.5 million bitcoins at that time, leaving 16.5 million ELA to bitcoin holders. Give a 1:1 gift. Airdrops are exchanged through the exchange and are collected by the user. If the remainder is not received within the specified time, it will be included in the elastos capital for ecological construction. Originally, such a way can play a role in expanding the currency holding group, decentralizing chips, and increasing project visibility, which is a very favorable policy for the later operation of the project.

Then this is not the case! After the launch of the huobi exchange in February 2018, the project party thought that it would be “not suitable” to give 16.5 million such a large sum of money! Without any consultation and publicity with the community, the agreement was unilaterally torn down, and only a small amount of 500,000 of them were thrown out through the fire currency exchange, leaving the remaining 16 million ELA privately in their own "pockets". Seriously violate the white paper promise, violate the spirit of the contract!

Immediately in the official second edition of the white paper, the project side quietly changed the use of 16.5 million ELA from the original “returning bitcoin community” to “ecological construction”.
Here, we will read the description in the first edition of the white paper again: the final unclaimed currency will be included in the cloud construction for ecological construction. note! It is the “unclaimed” ELA that can be placed on the project side. The so-called unclaimed, the normal logic is a small part of the surplus due to objective reasons. In addition, the cloud project actually intercepted 16 million ELAs that were “not dropped”. This is the project party deliberately for the sake of their own interests!

This change has made the original distribution model with good intentions and planning instantly extremely unreasonable. We can analyze it:
1, less circulation! The 16 million ELAs were intercepted, leaving only 8 million private ELA shares in the secondary market. Each year, 4% of the total amount (three 33 million) is issued by mining, which is 1.32 million ELA. This issuance is equivalent to 14% of market liquidity. Such a huge inflation rate, in the absence of any commercial application to consume, will inevitably lead to a sharp depreciation of ELA's face. Serious damage to the interests of investors!
2, the chips are concentrated! 16 million +3.5 million, plus the team members' own quota, the project side controlled more than 70% of the total chip. It makes the chips that can be extremely dispersed by airdrops become highly concentrated! Once the 16 million ELAs are released to the secondary market, they will inevitably generate a large selling pressure on the market, and the market cannot undertake it!
3, corruption breeding and benefit delivery! Without giving the chips to the community, there is no benefit to the community. Projects with a high concentration of chips and trying to control the disc have an ulterior purpose! When the ELA is at 500 yuan, the market value of 16 million ELAs is 8 billion. Such a huge amount of funds, without any supervision and supervision, has become a large-scale treasury of zero cost for the project side in disguise, and allows consumers in the secondary market to pay for it.
In summary, we believe that this is also the bottom line of the cloud project team, betrayal behavior!

Fifth, | Unrestrained release of ELA, investment in ecological projects was exposed to high-level cash

ViewChain is one of the so-called ecological construction investment projects of elastos. In March 2018, ViewChain officially announced a strategic cooperation with elasos and obtained a strategic investment from the elastos Foundation. The Elastos Foundation invested approximately 150,000 ELA coins in the project (the exact number is not officially disclosed). However, afterwards, the huge investment that should be required to be signed and locked in, should not be fully responsible for financial supervision. The ViewChain project party then sold a lot of money when the ELA price was more than 40 US dollars, and it cost tens of millions of dollars. (This event was presented at the Elastos 2018 Thailand Annual Meeting by the co-founder of ViewChain. At that time, elastos team member Cheng Hao and several community members were on the scene.)

Such an operation is undoubtedly a serious selling pressure on the secondary market. The arbitrary use of this "ecological investment" fund is undoubtedly a huge dilution of equity and wealth plunder for early investment and secondary market holders. Giving the elastos community members a devastating blow to the team's trust! At the same time, let us see the serious problems of internal management of the team.

Now, elastos officially uses nearly 16 million ELAs that should have been airdropped to all bitcoin community holders for “ecological investment”, and then associates with the ViewChain event of one of the above “ecological investments”, do you have any I feel the cool breeze coming and shivering? Yes, because this is a sword of Damocles hanging on the head of every investor! The ELA, which could have been extremely diversified and dropped to 16.5 million bitcoin holders, became a disguised selling and cashing. Let the chip that could have increased the base of the user of the currency become the largest "Air Force Commander". This is also the trigger for a large number of community members in the near future to elastos officially to destroy this part of the ELA.
Sixth, unilaterally cancel the Wanji Locked Warehouse Group project to jointly manage the rights and interests, and establish a joint governance committee

In December 2017, elsatos issued the currency, after which the official actively promoted the lock-in program. It is hoped that community investors will build consensus on the project and pass on faith. Encourage everyone to lock positions and make a commitment: all locked-in investors have the right to vote on elastos major events, and investors who lock thousands of coins can even join the community governance committee. The following is the announcement of the lockout plan officially released by elastos at the time:

At the same time, elastos officially issued a document reviewed by the Council: elastos eco-cooperation and governance dividend mechanism; it also clearly stated that more than 10,000 community members are eligible to enter the permanent committee of the Communist Party, and the members of the council have the right to vote. And the right to be elected. The following is a screenshot of the relevant file:

The average price of elastos public offering is around 120 yuan. After the listing of huobi, the price once exceeded 500 yuan. In other words, the investors who locked the 10,000-dollar currency used a nearly 5 million yuan of assets for a ticket to enter the "Common Governance Committee", hoping to participate in the project's joint governance, with the right to vote and to be elected. And who can think of it, all this is the elastos project party in order to reduce the selling pressure after the listing, to the community to weave a beautiful lie, downright scam!

These elsatos, who are locked in 10,000 yuan, have not been granted any co-governance or voting rights and the right to be elected in the next year after being pulled to a so-called "elastos seed lock group". However, in the year of 2018 elastos Chiang Mai, Thailand, the project side overturned the early promise and announced the establishment of a community-based co-governing committee called Cyber ​​Republic (CRC). But nothing is mentioned.

Let's not talk about the necessity of the establishment of CRC or the role of the future. Now that we have the "CRC Co-ruling Committee", what kind of account should we give to the previous project party's commitment to the rights of investors? What? At the beginning, I encouraged large investors to lock in tickets for nearly 5 million assets. Is it a piece of waste paper? Here, we would like to ask the two founders of Yelaiyun. In your eyes, what are the investors who have come up with real money to support elastoa? What is the minimum respect and integrity for investors?
In September 2018, investors in the elastos seed lock group repeatedly asked the official to give an explanation on this matter. Community members also directly requested the right to restore the Wancoin lock group at the 2nd online exchange meeting. It was undecided or perfunctory by the project party.

To be so frank in the face of the problem, to use this kind of diplomatic rhetoric as a means of coping, there is no sincerity, and it is even more unacceptable to the community. The “Welcome to the members of the Wanco Group Locking Box to put forward reasonable proposals” mentioned in the reply means that these former big households are just the same as an ordinary community member, and only have the right to participate in the rationalization proposal of the CRC. Once the solemn promise of entering the committee of the Communist Party, the election and the right to vote of the board of directors are all invalid!
Since Chen Hao returned to China in 2000, 18 years of entrepreneurship can be said to have failed. It is precisely because of the catch of the blockchain that it has the opportunity to “return”. have gratitude! Without the support of early investors in these Chinese communities, there would be no elastos today!

Seven, | shoved with various excuses, refused to use the details of public funds

As we all know, as early as 2017, elastos three rounds (angel + private equity + public offering) raised a total of 6,960 bitcoins. Even if the fundraising still has a market value of 350 million today, it is enough to support the team's expenses in the next few years. And in this year's official financial data, in addition to BTC spending, there are up to 1 million ELA expenditures. According to the currency price at that time, it is equivalent to the funds obtained from financing BTC, and the official has extracted nearly 300 million from the secondary market “cash machine”.

And how are these specific ELAs used? Where is it used? Is there a necessity and rationality? In the face of the reasonable requirements of the investor's request for details, the official once again rejected the diplomatic rhetoric, claiming that this is a team management secret and should not be made public!

Today, the price of ELA has dropped from 500 yuan at the beginning of the line to the current 50 yuan, although there are objective factors in the market. But we can't help but ask, is this really just a "natural disaster", there is no "man-made disaster"? For any commercial project, early investors were originally the most loyal supporters, believers! Once elastos has lost these loyal groups, from now on it is a sign that the project will eventually fail!
Eight founders make a statement, unilaterally unlock the angel lock position in advance! Integrity collapses!

The elastos project has announced a lockout plan to the global community. It can be clearly seen in this picture that a total of 4.61 million ELAs will be locked in the Angel Wheel until January 2019. The exchange rate of the angel round at that time was 1:10000, which was equivalent to the cost price of RMB 2 at the price of BTC at that time. Everyone knows that such a huge amount, and such a low cost, ELA, if released to the secondary market for circulation, will be a naked, bloody, whether it is for private investors or ordinary investors in the secondary market. Harvesting.

On October 24, 2018, the official elastos officially published a letter on the official WeChat public account entitled “Elastos Founder Chen Haozhi Community”, without any communication and negotiation with the community. Once again, tear up the mask of integrity and unilaterally announce the end of the angel lock plan! The reason given is the so-called “in order to meet the requirements of expanding the international market”. This move has once again aroused the strong anger of Chinese community investors, and once again, the interests of investors have been hit hard.
The article mentioned that this decision is to fully listen to the community's opinions. Will the ELA have such a collapse after the announcement of the community consultation and consensus? The project party even bluntly claimed that "this decision is extremely beneficial to our project." It should be said that "this decision is extremely beneficial to our project side", which facilitates the early cashing of the zero-cost chips in the core of the team.

At this time, another founder, Han Feng, appeared in the community in time, intentionally or unintentionally revealing the "good news" that the project intends to pull. But by the project side, again and again, the investors who broke the contract will still believe in you as innocently as they were?

Regarding the handling of the 16 million ELA mentioned above, Chen Yu has repeatedly stressed in the community that he has no right to decide. Then, for the unilateral interception of 16 million empty coin and private misappropriation, unilateral deprivation of the lock-up of large households to jointly rule, unilaterally unlock the lock of the angels in advance, and so on, who is giving you the power?

It’s no accident that Chen Hao’s 18 years of entrepreneurship failed. It has serious problems in team management, personnel appointment, promotion and operation, and market public relations. I also came to the cloud with an old code project that was developed 18 years ago and has not been commercially verified. The concept of blockchain has been hugely funded when the mountain is running out. However, there is still a high control panel, a centralized system, a slogan, and ignoring the integrity of the matter has seriously violated the blockchain spirit! Is it not the biggest irony for the community and investors that an untrustworthy team claims to be a credible Internet operating system? !

"White Paper on Rights Protection" appeals:

  1. Details of the specific use of 1 million ELA in the public financial statements. Including where it is used, how much it is used, the transfer address, etc. Community investors have the right to know and supervise.
  2. Accountability of the responsible person for the ViewChain incident; who is responsible for the later supervision? Who is responsible for multi-sign authorization? Responsibility needs to be clear to the individual! Publicly disclose relevant wallet address, investment time, specific quantity and other information.
    3 Elastos officially apologizes to the official media channels such as its official website and public account for all community investors who have caused damages!
  3. Reinstate the investor's rights and interests of the million-dollar locker that was originally promised, and resume the election and election of its members.
  4. Compliance with the spirit of the White Paper, 16 million ELA will continue to airdrop back to the entire Bitcoin community or to make one-time destruction.
  5. Obey the spirit of the contract. If there is no consensus through community consultation, the angel lock currency should not be released in advance.

If the appeal is not fulfilled, the rights defense will adopt the following measures including but not limited to the following:

  1. In the form of officially issued documents, the official officials of the company will be held accountable to protect their legitimate rights and interests.
    2, in the various currency circle WeChat group, telegraph group, published articles from the media platform, public rights protection "vote eight items"
  2. Will no longer participate in any cloud exchange meeting, and organize personnel to resist and protest against the project side in the form of banners, roll-ups, etc.!
  3. Real-name reports will be made in the financial offices of Beijing, Shanghai and other cities, the Economic Investigation Bureau of the Municipal Public Security Bureau, the Financial Supervision Group of the People's Bank of China, the municipal industry and commerce, etc., and cooperate with the relevant evidence.

Elastos Investor Community Rights Alliance
2018.10.25

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Hey thanks for translating this, i went through it last night but it was late and i didn't feel like putting it all together