This is simply their explanation. I would have liked to have seen it written/edited by a wordsmith/lawyer for a company of this size.
Message from the CEO
17th January 2018
With the increasing inquiries through telegram and email since 11th Jan for our explanation regarding the frozen Soarcoin issue. The following details will be Soar Labs explanation on the issue.
Recently a certain amount of Soarcoin from one of the companies we’ve invested in on 2017. The reason why we had decided to do it was because aforementioned company, decided to liquidate Soarcoin at an unacceptable level.
It was a tough decision, as we did not want to freeze the Soarcoin, but it was for the benefit of the remaining Soarcoin holders. Aforementioned company, had a huge amount of Soarcoin, as much as 6% of the potential total supply of 5 billion Soarcoin because of Soar Labs initial investments. However, the reason for Soarcoin being sold, and the ridiculous amount of Soarcoin that were being disposed, could potentially damage the market of Soarcoin. Those monitoring the market may notice the change in growth as compared to the last few months.
Soar Labs had notified aforementioned company that we were pulling out on 11th November, but we retracted the termination notice on the 12th November for the sake of an amicable parting of ways with the aforementioned company. Aforementioned company director had requested for a month before we make the formal termination regarding the partnership while they look for an alternative arrangement.
I think what most of people reading this post will be interested in how we actually froze the Soarcoins that were in their wallet. In the Soarcoin smart contract, there exist a ‘zero-fee transaction’ function.
What is ‘zero-fee transaction’ function? On the last migration and upgrade of the Soarcoin contract, we had the intention to create a Soarcoin wallet, that doesn’t require users to have Ethers in their wallet to carry out transactions. However we decided to postpone the wallet because the scalability issues of Ethereum will not allow the wallet to work efficiently. And thus, we went ahead to create an off-chain wallet instead. The use of ‘zero-fee transaction’ function was designed, so that a pre-set central account will be able to perform that function, and not the owner of the contract.
We’ve used zero-fee transaction previously for some of the airdrops, and it has proven to be relatively successful as we were able to manually check for cheaters or participants with bad intentions, and revoke the airdrop to the users.
Zero-fee transaction function was created to facilitate our holders without needing ethers to perform transactions in future, and out of good faith, and for the benefit of Soarcoin holders on the long run because of the countless of phishing attempts in the ethereum network, or even silly mistakes made by some of our supporters. It was a tough decision to use it on our ‘partner’, but we’ve decided that, Soarcoin holders are actually more important, and we’ve come this far with the support of the community.
For transparency purposes, soarfreeze.eth was registered, and the Soarcoin residing in it (soarfreeze.eth) are afflicted with frozen status. The transaction records of the frozen coins can be accessible by everyone at the following link https://etherscan.io/address/soarfreeze.eth
Soarfreeze.eth was created for the intention of freezing up Soarcoin. Soarcoin residing in soarfreeze.eth, will not be used by Soar Labs, unless, clarified and explained by us.
To be fair to the market, the Soarcoin invested in aforementioned company were not calculated into the circulating supply of Soarcoin so as not to intentionally inflate Soarcoin market capitalization unless it was transferred out of the designated wallets.
As for the amount of Soarcoins that were frozen, it was not the total amount as the rest of the Soarcoin are most likely out in the market already, perhaps pay the bills of someone, and we hereby apologise to all Soarcoin holders for not acting early enough before we sense that something is wrong.
Any Soarcoin not accounted for in current circulating supply needs to be represented to all Soar holders and general public for means of accountability and transparency. As for the rest of our Soarcoin holders, be assured that, we will not freeze any of the circulating Soarcoin in the market. The above scenario is an one-off incident of as those were the only Soarcoin not in circulating supply that would impact the entire Soarcoin market.
We will come up with a statement on how do we intend to deal with the Soarcoin in soarfreeze.eth, and we assure everybody, we will treat this matter very seriously and handle it the way it should be handled. We are always open for suggestions on how the frozen Soarcoin should be handled, feel free to contribute your ideals via email or in our telegram group
There is obviously more background to this that will be revealed in the coming days, but if the ASX are satisfied with their answers I guess we will see, with the eventual lifting of the V. S.
