In the blockchain industry, ‘M & A-partnership truth-related dispute’ is happening … The industry is bruised because of an immature company.
While blockchain technology has been recognized in many areas such as identity verification, logistics, and distribution, some blockchain projects are showing signs of unusual business behavior leading to a decline in industry-wide confidence.
Experts point out that the blockchain industry is attracting attention and that large corporations are also jumping into this industry so that companies can improve the reliability of their industries by adopting more mature business methods and consumer responses.
According to the related industry on May 5, the controversy over the blockchain project ‘Refereum’, which recently announced a partnership with the global popular game Battleground, is spreading.
Refereum has partnered with PUBG Corporation, which developed Battlegrounds through official press releases, scoring the achievements within the battleground with PUBG and then awarding products such as cryptocurrency “RFR” and battleground backpacks in order of rank Official announcement.
“But it seems that the Refereum has been using Battleground’s open application API, which is open to anyone,” said PUBG. “We do not have a partnership with Refereum.”
Again, Refereum has “been working with the PUBG America team a number of times, and it is not true that the Refereum’s event has nothing to do with the PUBG”. Nevertheless, the PUBG is still repeating the stance of “partnership is not true”, adding to the confusion of users.
The reason why the controversy between Refereum and PUBG is attracting attention is that some of the blockchain projects have canceled as soon as announced the plans of collaboration and merger and acquisition (M & A) that are not true.
A typical example is the Cosmo Chain, beauty projects based on blockchain. The Cosmo Chain announced that it had decided to sell more than half of its stake in KaKao Investments, an investment company of Kakao, on July 4, but it has canceled the announcement in a few moments.
Cosmo Chain said that it has not been decided yet, but it is continuing negotiations to sell the stake. But the story of KaKao is different. A KaKao official said, “It is true that we have reviewed the acquisition of the Cosmo Chain stake, but we have decided not to invest in the final,” he said. “We have decided not to negotiate but decided not to invest.”
The Raid (RAID), which said it would manage game data with a blockchain, was also stranded virtually due to a sudden stoppage of its core partners. In March, the company decided to refund the entire amount of cryptocurrency already sold because of the suspension of cooperation with its core partner, OPGG.
It was confirmed that the partnership between Raid project and OPGG was suspended because the project was conducted without consulting with Riot Games, the developer of the global popular game ‘League of Legends’.
An industry analyst said, “The recent controversies seem to be due to the fact that, in many cases, the projects intentionally expose to investors what they are discussing or they should not disclose to the outside without signing a contract yet, and try to increase the price of a cryptocurrency.”
And he said, “This confusing thing to users and investors is the way to lose credibility throughout the industry.”
Another official said, “There are much more projects that concentrate on the price of cryptocurrency than a project that focuses on products or services.” In order to grow into an industry that attracts attention from the government as well as from the market, companies participating in the industry should also mature together. “
( Source: The Block Post )
