The situation came to light on Twitter Friday, Aug. 17, when one tweeter commented that an ICO issuer is threatening to sue investors and anyone critical of their execution.
MobileGo performance. Source: Coinimarketcap.com
Sholom, writing on the MobileGo channel, stated there has been a lot of “noise” about “investor money” and advised readers there will be legal action considered against parties spreading rumors that undermine the token’s value.
CEO Admits Mistakes
Sholom admitted he made mistakes along the road and that he wasn’t sufficiently involved in the project’s development, but that professional management has been established.
He said there will be no compromises with unsatisfied developers or investors. He claimed there have been malicious rumors from people who did not care what they were doing and some that had their own agenda.
The only “legit” goal of the project is the success of the token and the platform, Sholom said.
As the business is under attack, Sholom said all “immature and ridiculous” demands will be directed to his lawyers who will decide which merit a lawsuit.
Third Party Perspective
Samad Sajanlal, a cryptocurrency consultant who claims to have done some work on the network, offered some background about MobileGo on Medium.
Prior to MobileGo project, a project called GameCredits was founded with the purpose of providing a universal gaming currency called GAME.
Sajanlal said that in late 2016, Sholom and his brother, Maxim, who owned a company called Datcroft, approached GameCredits and promised they could deliver thousands of users in less than a year, along with an online store for games.
Jack Kuveke, who identifies himself as one of the first 10 members of GameCredits, noted on Reddit the Sholom brothers took over as CEO and product director/financial director.
The brothers in 2017 decided to launch their own ICO called MobileGo or $MGO as a complementary token to the GameCredits coin, Sajanlal said. Where GameCredits token is a gamer currency, the MGO token was designed as a token for wagering in eSports tournaments, he noted. The ICO raised $53 million.
In the fall of 2017, the brothers realized their applications would not be ready to go to market, Kuveke said. They then launched GNation as a gaming brand to help cryptocurrencies obtain partnerships with non-cryptocurrency parties, he said.
A faction of developers in April of 2018 complained that the COO the brothers had put in place was engaging in side projects and undermining the overall efficiency, Kuveke said. The Sholoms then began to spend more time at the headquarters, during which it became apparent that they had a vision for the company they were not sharing with the development team.
In the meantime, MobileGo has not removed a white paper from its website that states that more than 300 games from 150 developers are already signed on and that the GameCredits mobile store is scheduled to release in the early second quarter of 2017.
During a July trip to the company’s Belgrade headquarters, Sajanlal said he met the whole team. He goes into a lot of detail on Medium about his visit, which left him with a very unfavorable of the company’s situation.
One day during the course of his July visit, Sajanlal said he was told by employees that the brothers sent an ultimatum that caused some of them to leave the office to go home to work.
Sajanlal claims not fulfilling the goals outlined in the white paper is equivalent to an ICO fraud.
While the brothers promised thousands of games integrated with GameCredits, there is only one game that integrates with it, Sajanlal said. He claims the developers are exhausted and many are not working for what they were hired for.
A group within the organization has since decided to split off and build the GameCredits ecosystem under a new name, Sajanlal said. An organization called the GameCredits Foundation is attempting to develop the original GameCredits vision of a universal gamer currency. This organization is not funded by GNation.
Sajanlal claimed the Sholoms have shifted from what they promised in the white paper to humanitarian and charity ventures. He advised them to fund the GameCredits Foundation to build the original vision and to then step aside.
Comments were posted on Reddit a year ago by people claiming to have purchased MGO tokens in an ICO but not received them.
According to isthiscoinascam.com, MobileGo is missing some important profile data, including details about the white paper, the GitHub Repository and about the available exchanges.