collective test Former COO Ryan Carson has found himself in murky waters after his Web3 fund, ‘Flux’, was met with criticism. In a (now deleted) tweet on February 3, Carson said that he planned to raise $10 million with the help of 100 investors. However, NFT Twitter, as well as investors in the fund, were quick to notice many discrepancies.
Here’s everything you need to know about Ryan Carson’s Flux Web3 background:
What is Ryan Carson’s Flux Web3 Fund?
On February 3, Ryan Carson announced a new Web3 investment fund, called Flux. In particular, he named some of the industry who’s as investors. The list included Pudgy Penguins CEO Luca; Gary Vaynerchuk, founder of Avastars NFT, j1mmy.eth and NFT influencer, andres wang; to name a few.
He also shared a link to the official website, which has now gone private. However, NFT community members like wale.swoosh scrutinized the website before it went private. Apparently, the website claimed that the fund had “79 places left” for potential investors. But here’s the rub: To be eligible, investors had to invest a minimum of $160,000.
In addition, the website prominently displayed images of current Flux investors. Naturally, one would assume that each individual has already invested $160,000. With 100 investors, the final amount would total $16 million, which is much higher than the amount Carson said he was raising. Furthermore, since the existing 21 investors likely invested less than the minimum amount, the NFT community claimed that they would receive the same shares as those who invested a larger amount.
Investors in the Flux Web3 fund withdraw investments
Amid the backlash against Ryan Carson’s Flux Web3 fund, several of the 21 investors have come out to express their discontent. Lukefor example, he said that he has not signed anything or financed anything.
“I thought he was just helping people in space and being friendly.” tweeted. “I don’t know much about the details, but I’ve made it clear to Ryan that I don’t want to be a part of this.”
Similarly, Gmoney wrote, “I am not comfortable with the way this announcement was made prior to the completion of the fundraising and the tactics for the fundraising, so I am no longer committing to the deal.” He added that he invested only $10,000 in the project.
Ryan Carson releases statement
On February 4, Ryan Carson hosted a Twitter AMA to answer any questions the community might have about Flux. Additionally, in a Twitter thread, he noted that current Flux investors have pledged between $10,000 and $160,000 each.
“It’s standard practice when you raise money to secure a handful of early investors with a smaller check size and then, once you’ve built momentum, require a larger minimum check size.” added. “I offered a handful of friends the chance to invest $10k to get started.”
Interestingly, this isn’t the first time Carson has found himself in the middle of a controversy. For example, amid accusations of insider trading, Carson left Proof Collective early last year. Soon, he launched 121G, an NFT venture fund.
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