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What happened?
John Deaton, a well-known XRP advocate and attorney, has raised concerns about Linqto’s proposed refund strategy after the platform froze accounts earlier this year. Deaton highlighted that investors might lose significant profits if Linqto decides to return only the initial investment amounts, ignoring the earnings from successful investments. The situation arose when Linqto ceased operations and froze customer accounts on February 27, leading to frustration among its users.
Who does this affect?
This issue primarily affects Linqto’s users and investors who have stakes in profitable ventures like Circle and Ripple through the platform. Many Linqto users are frustrated by the platform’s new KYC process and lack of communication, especially those holding valuable shares. The company’s silence has caused widespread concern among its more than 14,000 users who are demanding answers regarding their investments.
Why does this matter?
The situation with Linqto could have a significant impact on the market perception of platforms that provide access to pre-IPO equity investments. If investors lose confidence due to inadequate refund policies and lack of transparency, it might deter future investments in similar platforms. Moreover, the potential financial losses for investors might lead to legal actions and demands for regulatory scrutiny, affecting the overall market dynamics in this sector.
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