Others, such as 4 investors ins Fantasy Market (FM), are terrified that they have been scammed in what remains a largely unregulated marketplace. They have requested refunds.
FMtokens would be used to watch live-streamed pornography. Investors had purchased them with ethereum.
According to Kevin Dugan at the New York Post, those 4 investors contend that FM founder Jonathan Lucas is a fraud. His original goal was to raise $25 million.
Lucas has not been charged with any wrongdoing.
Among those investors, 1 did receive a refund. But that investor is not a happy camper. That's because what was returned had only been the amount of the original funding. Since then the value of the token has tripled.
The FM website indicates:
- Refunds will be made 90 days from the date the request was filed with email@example.com
- The terms and conditions for assessing the amount of the refund. It states, "Investments are being returned at the USD rate in which they were received. For example, if 1.5 ETH was invested when 1ETH = 1,000 USD, then 1,500 USD will be returned to the investpr, regardless of the current price of ETH."
The investors' expectation was that the increase in the value would belong to them. Obviously given the lack of regulations, investors have to hyper-cautious.
Another investor claims that Lucas has been trading on cryptocurrency exchanges. If that is true, it could be that he has been operating a kind of digital currency Ponzi scheme. He needs to make money in other exchanges to pay off the MyFantasy investors.
This development is unlikely, though, to deter those out to make a killing in cryptocurrencies. They may not be in it for the long term. When they have made "enough," they also assume they can cash out, receiving both the original investment and the amount of any added value.
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