According to claims, Alexandre Dreyfus has been holding back payments in order to maintain the price of the Chiliz (CHZ) cryptocurrency used by the Socios community.
Report Of Non-Payment Plague Socios
Fan token website Socios partners with 55 football clubs and sporting leagues, which include Lega Serie A, AS Monaco, New England Revolution, New England Patriots, LA Lakers, Brooklyn Nets. It has been the target of an investigation led by a football finance intelligence service, Off The Pitch. The investigation, which lasted five months, has revealed that many key advisors and staff members did not receive the crypto payments owed to them by the company. The accusations are primarily against the CEO and founder of the site, Alexandre Dreyfus, who allegedly held back these payments to maintain the value of CHZ, which was the crypto used by the Socios community.
CEO’s Texts Revealed
Users of the Socios platform can purchase fan tokens by buying CHZ to get holder access to exclusive fan clubs, where they can cast decision-making votes within the community. However, certain advisors, who were supposed to be paid a predetermined amount of CHZ for their services, have reportedly not received their due payments for two years. Further, there have also been reports of Dreyfus avoiding all communications since September 2020.
However, the real scoop is the alleged internal texts from Dreyfus as reported by Off The Pitch, where he explains that he did not want the value of CHZ to drop, claiming that “real investors” could lose money if the advisors started selling their CHZ. The screenshotted message reads,
“We also need to protect the investors. When you give free tokens, people can sell at any price — it doesn’t matter for them.”
Response From Dreyfus And Socios
Dreyfus himself addressed the accusations by tweeting,
“Today, spurious claims were made about me and Chiliz, some of which have already been corrected. But for the sake of clarity, I want to share the facts and respond fully.”
The tweet is linked to a statement released by Team Socios on its Medium page, which cited core parts of the report calling them based on erroneous data. The statement revealed that the percentage of CHZ awarded to the advisors would be a very minor percentage (almost 0.4%) of the overall CHZ in circulation and is therefore incapable of driving any movement in price.
An excerpt from the statement reads,
“Just like other currencies and cryptocurrencies, any change in the price of CHZ is predominantly driven by prevailing market conditions. With such a significant market capitalization of CHZ, any reward structure for eligible employees has a negligible impact on its price.”
The statement also revealed that the team would be looking into other accusations levied against it by the Off The Pitch report.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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