Scroll, a project that purported to be a blockchain data management platform, has abruptly shut up shop, leaving token holders in shock and the tokens themselves worthless. The project, which was active on social media and still advertising their product until just days ago, announced the closure via a curt message on its social media platforms and its website, leaving a trail of angry investors with plenty of questions.
SoluTech, Inc. (also known as “Scroll” or the “Scroll Network”) is no longer conducting active business. Further questions should be directed to (508) 549-5797, or via email to [email protected].
— Data Transaction Token (@DataTxToken) October 17, 2019
Investors Ignored Abysmal Token Performance
Scroll, which was also known as SoluTech, had been knocking around since 2017 but went through a token rebrand from SCROL to XD in June, which seems to be around the time that a bunch of Twitter influencers, including Crypto Vanessa and a group of marketers called AltOne Crypto, came on board to market the token to the masses. It seems they were successful in doing this, attracting huge sums from individuals, based on, apparently, their personal faith in the project. The new token launched in late July and raced to a high of $0.36 within a week, before performing a spectacular swallow dive down to $0.032, a drop of 91%, within the following 10 days. Even in the hours leading up to the collapse of the project, the trading group was full of optimism, despite a maintained two-month downtrend that had seen the token price fall another 85%, illustrating the power that a narrative can have over objective facts:
The sad fact for investors, who were constantly told to “buy the blood in the streets” following the huge drops, is that during the 15 months the token has been on exchanges, the chance of making a profit at any point works out at about 20-25%, such has been the terrible price action. Following the announcement, it didn’t take long for the disbelief and anger to surface:
The sad fact is that this is a scenario we have seen play out time and time again in the crypto space, and it shows that some are still learning the lessons of 2018 the hard way. Some of the marketers tried to defend the product, with one member of the AltOne crew stating that the team hadn’t sold their tokens so it couldn’t be an exit scam, but this was met with short shrift by the others:
– Message posted saying SoluTech, Inc. (also known as “Scroll” or the “Scroll Network”) is no longer conducting active business.
– Ex-employees stating that they have been scammed.At this point what are you trying to defend and why? Struggling to see any logic whatsoever.
— $trong (@StrongWriters) October 18, 2019
The most comprehensive complaint was made by one Eric Thies who drafted an open letter to the SoluTech/Scroll Network leaders, in which he mockingly congratulates the team for “pissing away millions of dollars and screwing over the people who gave it to you by merely posting a notice to your website.”
An Open Letter To the Leaders of @SoluTech_Media AKA @OfficialScroll & @DataTxToken
RE: A Bystanders Notes on Your Apparent Exit Scam https://t.co/vPyNF7hKn6
— Eric Thies (@KingThies) October 18, 2019
Investors Await Explanation
So far, no explanation from the team as to the reasons for the failure of the project has been forthcoming, which makes the loss all the more galling for investors. Some are still holding pending further announcements and the hope that something can be pulled from the wreckage, but all the evidence suggests that this is another example of a mismanaged project where the investors are the ultimate fall guys, although some still live in hope.
