A RESPONSE TO UNTRUE RUMOURS CONCERNING X-GAMMA AND XAURUM PROJECTS
In past days, the portal kriptoreporter.si has published untrue and unverified information on X-Gamma and Xaurum projects. The basis for this was the news of termination of the X-Gamma project, which in itself represents a rare example of good practice, both in the ordinary and crypto world, as the participants will be repaid in full, and all the risks taken over by the project organizers. We have already responded to the false claims and misinterpretations and have contacted the publisher to issue a correction on the basis of the first paragraph of Article 26 of the Media Act (Zmed). Due to the damages to our business, we are also considering the use of other legal means. Below you can read the response to published falsehoods. It is worth adding that the kriptoreporter.si portal made no efforts whatsoever to check the rumors, inquire about the facts and ask our company for a statement regarding the published articles.
XAURUM IS NOT UNDER INVESTIGATION
Companies associated with Xaurum are not under any criminal investigation, which can be verified at appropriate institutions. On the basis of the controversial article published on the mentioned website on May 2, our business partner started an internal investigation and announced the suspension of the Bitins coupons for XAUR. We understand the concern of Bitins Ltd. for their users, because we also see our customers’ safety and our business transparency as the most important, which we have proven by arranging an independent audit report from one of the largest audit firms in the world — PwC, and were the first of crypto projects of this kind to do so. We believe that the incident based on false rumors will be quickly resolved, and look forward to further cooperation with Bitins.
EARLY TERMINATION OF X-GAMMA PROJECT, PURCHASES WILL BE FULLY REFUNDED
The average cryptoproject has a lifetime of less than a year and a half, and more than 50% of the projects that have organized an ICO in 2017 have been abandoned. Failure is nothing unusual in crypto (or elsewhere), however a full refund of the invested funds is vary rare. The project management will organize the sale of the already completed villa Rustika to provide the funds required for a full refund to Gamma ICO customers, and the sale of unfinished villas will be enough to partially compensate for the costs incurred in project.
From the onset, the criteria for success and failure of the X-Gamma project were transparent, especially the financial aspect and the timetable. The necessary funds to carry out the project and the deadline for the development of real estate required to make the X-Gamma project successful, were required to start generating revenues in the 2018 season. These two conditions are codependent. Since sufficient funds have not been collected, the construction cannot continue and the deadline for implementation has been missed. This means that in the 2018 season, the X-Gamma project will not be operational. After careful deliberation we have decided to terminate all activities related to the X-Gamma project, as we have determined this to be the only realistic option in which the potential damage to the funds of the holders could be avoided.
More than 90 percent of funds were collected in FIAT currencies (euro and dollar), and the difference (less than 10%) in ETH and BTC. No matter how they were collected, the funds were immediately spent on the costs of building the real-estate, which means that the amounts in ETH and BTC were immediately converted into FIAT (Croatian kuna), therefore there was no profit made on the growth of cryptocurrencies. Every XGM token had a precisely defined equivalent in euros as was the sale price of the token. We have offered additional payment methods to customers who wanted to pay in ETH and BTC, however the moment the funds were received, they were replaced at the exchange rate in FIAT, as is written on each issued invoice received by customers for their purchase. Regardless of whether the crypto market has grown or fallen, their assets have not increased or decreased, but retained the fixed euro denominated value at the time of purchase.
X-Gamma was a crypto project based on real value, in this case real estate. The funds collected at the initial offer of coins (ICO) were intended for the construction of real estate and the sale of these properties makes it possible to return the funds. The project itself did not come to life and has not started to generate profits (in the current state this would have not have happened at least until the 2019 season), so we thoroughly decided to stop it. The possible continuation of the project would pose a risk to the holders, since the fixed ratio 1 : 1, that was guaranteed at the beginning. It seems fair to us that investors do not have their funds bound to a project on hold and to have the opportunity to redirect their funds elsewhere.
The project management as explained, has not generated any profits, but a business loss. It is worth mentioning that all the costs in connection with the organisation of the ICO (smart-contract, fees for currency exchange, offices, administration, accounting, employees, marketing, publishing, etc.) has been financed from the project management’s own funds, in order to ensure that the guaranteed value could be preserved. We are adhering to the rules, conditions and obligations that we have determined at the start of the project, and therefore believe that our customers’ trust in us has been justified.
