The Australian Securities and Investments Commission (ASIC) are doing their part of the investigation into Global Tech, a crypto startup which was endorsed by former Australian cricket player Michael Clarke.
A few months ago, Global Tech started popping up in the market with a revenue goal of $50 million through the Initial Coin Offerings (ICOs). The plan was to launch a cryptocurrency based social media platform and crypto exchange.
The Global Tech, after the launch, asked Michael Clarke to promote the Initial Coin Offering by posting a few tweets regarding the product and by appearing himself on the website of Global Tech as an ambassador.
Michael Clarke, in his tweet, said:
“I’m really excited to be involved with Global Tech. The ambition and drive of Global Tech is something that I resonated with straight away, and I can’t wait to learn more about the blockchain technologies.”
How Country Reacted?
The promotion was criticized by cricket commentators, media news outlets, experts. They raised questions like; why a cricket start would promote a firm which is currently working in a very high volatile and emerging virtual space.
John Hempton, who is the founder of Bronte Capital, said that just like using sandpaper on the ball, he is now tossing up his own reputation. He further added that it is now on ASIC and the lawyers to decide on whatever Michael Clarke did with his tweets; going against the Australian laws against advertising investments.
However, besides all these negative comments, Global Tech officially stated that they managed to raise over $4.15 million from the investors. As per the reports, Michael Clarke signed a deal to receive 4% of the total funds generated by ICO.
Future Moves by Global Tech
Global Tech has closed down its websites and other social media platform; pages, LinkedIn accounts of members and founders. And as per the Australian Securities and Investments Commission reports, the company is about to be deregistered permanently.
The founder of Global Tech stated that they have return all the funds invested and are going to close down their project due to the ongoing negative approach of surroundings regarding the crypto market.