Personally but I was yifu, I'd take what profits were made off these chips and use those profits to either a. Return to customers with chips. B. Use profits from chips to compensate buyers with gen2 chips. Break even restore their name and make all customers happy. C. Refunds would be lastly considered after exhausting all ways to satisfy customer complaints by compensation.
I've worked in customer retention for 5+ years, this is standard business practice of fortune 500 companies, customers need to be satisfied or the company will go under.
Mark my words, if he proceeds with just refunds and not compensation, this is the end of Avalon, and other companies will move quicker to take its place. Yifu needs to be very mindful of his actions.
It depends on how cheep their gen2 chips are. If they are cheap enough compared to the competition, people will be willing to take a risk and buy them since the reward will be higher. But it definitely means they'll have to charge far less then they otherwise would have.
You can see how the credibility they gained shipping B1 and B2 (plus the spike in bitcoin price) allowed them to charge more for B3.
Now that credibility is gone, and they'll have to go back to crazy cheap prices, even with chips on hand.
