Swarm, a decentralized crowdfunding platform which enabled companies to offer cryptographic shares with its own alt-coin has ceased operations due to an internal dispute and financial issues.
Today, Swarm co-founder and CEO Rudd Davis wrote a blog post on Medium, in an attempt to explicate the reasons of the platform’s demise.
- Co-founder and designer Ryan Denehy quits during the product delivery cycle;
- Team disagrees to open source its Software;
- Co-founder’s covert deal with Techstars (mentorship-driven startup accelerator) led to the loss of US$200,000 from Swarm’s budget.
According to Davis’ blog post, ‘Pretty Boy’ co-founder and designer Ryan Denehy quit a few weeks after the platform passed the delivery cycle.
“My designer co-founder quit a few weeks after taking over our whole product delivery cycle,” wrote Davis. “Our last guy was promising delivery in less than a week for over four months, then simply flat out disappeared. Oops.”
During his exit, Swarm co-founder Denehy secured a covert deal with Techstars, a mentorship-driven startup accelerator, and negotiated without approval from his team and the company’s CEO. The deal led to a US$200,000 loss, a blow that has prevented the platform and