Envion is a German blockchain start-up based in Switzerland that wants or wanted, (having a look the current situation), revolutionize mining market by creating mobile units called MMU (Mobile Mining Unit). MMUs can be placed directly at the source of energy production, in order to have great savings on the price of it, also thanks to agreements with energy suppliers around the world.
These mobile units should be modular, scalable and easy to move so that they always move where the price of electricity is lower or where they might be able to conclude better electricity supply agreements. In this way, if in the place where the MMU is located, the energy becomes too expensive or that country bans mining on its territory, the project is not destined to fail or to have high costs for the transfer, because it will be enough to move the container elsewhere.
MMUs are standard csc containers with Asic and GPU inside, cooled by their patented cooling system so as to make the hardware work in an optimal way even if it is closed in a small space like a container.
Envion has also announced that it has created proprietary software for the Unified Mining Cloud, which is able to analyse the market and determine what is the most profitable cryptocurrency at that time, and move all the computing power on that to maximize profits.
The project has its own cryptocurrency called ENV, is an ERC20 token based on Ethereum. Thanks to this token, investors will receive dividends in ether based on the number of Envion tokens held.
This business idea was very popular with investors around the world and raised more than $ 100 million, entering the list of ICOs that raised more funds in 2018.
Currently, the company is involved in a huge scandal with its founders and CEO who accuse each other of fraud. At the moment, company should have already started paying dividends to its investors, but it seems that everything is firm because of this problem at the upper echelons of society.
As stated by Matthias Woestmann, CEO of the company, the mass production of MMUs has not started yet. On the official Envion website they show just two containers, which probably are the same ones created to make videos and demonstrations before the ICO.
Matthias said that founders have created over 40 million additional tokens for personal gain without the company’s knowledge. Founders defend themselves on their website, since their names have been removed from the Envion official website team, writing various articles about what is happening at Envion, giving more information compared to those given by CEO Matthias.
Matthias declares that he has informed the Swiss financial regulator about the events that have occurred and that he has filed a criminal complaint in Germany. He promised investors to create a new token in order to definitely start with the project and with dividends distribution. He also claimed to have only $ 50 million in funds raised during the ICO.
Founders, on the other hand, declare that CEO didn’t destroy unsold tokens after ICO closing as promised, keeping 5 million tokens in his possession. They also said that during a meeting, CEO cut off relations with them all at once, telling him he was taking full control of the company.
Founders currently accuse Woestmann of illegally acquiring a majority stake in Envion AG.
The initial agreements were that Woestman had 19% of the project with Quadrat Capital GmbH company, while founders remained 81% of Envion with the company Trado GmbH.
During the early periods, CEO tried to make an agreement with founders asking them to control their shares in order to speed up all the decision-making processes, and then transfer them back to the company of the founders (Trado) shortly before the ICO.
The founders didn’t accept, then he secretly issued more shares thanks to a capital increase succeeding in taking the majority share of Envion AG in violation of contractual obligations, leaving only 33% of the Envion project to the founders.
Michael Luckow, one of Envion founders, said:
“We are ready to build the product. Containers should be rolling off the assembly line and we should be installing mining units. The plan was to pay back dividends to our investors by now. We can’t do that because we are blocked by Mr. Woestmann. It’s not clear that he is making any positive contribution to Envion’s business, “
An interesting more thing to know about CEO and his partners is the past of some companies that saw them as directors. Here is what is reported in an article by the founders on their website.
“The owners of the two holding companies (Quadrat Capital GmbH and Sycamore GmbH), Matthias Woestmann, Thomas van Aubel, Jutta Freifrau von Falkenhausen, and Dinnies von der Osten, have a history of profiting from investments in companies that fail spectacularly and under suspicious circumstances. They and their associates are linked to a long list of companies involved in some of Germany’s largest financial scandals, including IGB, Balda (renamed to Clere), Q-cells, and Solon.”
We just have to stay updated on new communications, hoping that both the Swiss and German authorities arrive at the same conclusion finding the culprit in order to start the project as quickly as possible.