Koinify, a crowdfunding platform for cryptocurrency projects, will cease operating website and data custody operations, essentially deleting all wallets and coin holdings of users who participated in campaigns and did not move their coins elsewhere.
Koinify founder, Tom Ding, warned:
Following previous notice, please note that Koinify site is officially shutting down by Feb 15th, 2016. AFter that, all Koinify website functions and data, including wallet and any remaining tokens not withdrawn by users, will be completely wiped out and no longer available.
The platform was setup as a crowdfunding vertical for Blockchain 2.0 ventures and projects. Koinify used the Counterparty protocol to issue project-linked tokens, known in the industry as appcoins, to raise funds. However, Koinify only managed to host campaigns for two appcoin vehicles, Getgems and Factom, before ceasing operations.
The first project to raise funds on Koinify, Getgems, is a messaging application that permits users to send cryptocurrency to other members of the network. Relying on the open source Telegram application as a messaging infrastructure, Getgems raised 2,633 bitcoins by selling around 38 million proprietary tokens called Gemz in December 2014.
Factom, a highly regarded blockchain-based distributive application project, sold 4,379,973 Factoids to over 1,500 people in May 2015, raising 2,278 bitcoins or around $540,000 at the time.
Both of the campaigns were considered relatively successful. Thus, it surprised many in the cryptocurrency sector when Koinify announced in May 2015 that it was pivoting in a new direction and building a platform that will “democratize and reinvent corporate ownership and organizational structures.”
Ding told the industry
Since launching six months ago, Koinify has emerged as a premier marketplace for distributed applications. We currently serve over 8000 active users, and have facilitated $1.3M (in bitcoins) in dApp software sale revenue for our hosted projects.
We’re very proud of being able to pioneer a ‘gold standard’ for software sales in this industry. Hopefully in the future we won’t see sales conducted without multi-signature protection, vested milestones, true developer accountability, and extensive due diligence performed on the project.
Although Ding promised in May a forthcoming update on the new direction and plans, there has been no public announcement from Koinify until this week’s reminder and warning that it was shutting the websites and legacy wallets.
The shutdown won’t impact many users. Only holders of Gemz, worth maybe one US cent per token, need to withdraw funds from their legacy Koinify wallet. Factom’s Factoids were never stored on Koinify.
Nonetheless, cryptocurrency crowdfunding platforms, such as Koinify, Swarm and Blocktrust, have not been sustainable, perhaps a result of regulatory uncertainty or the volatility of bitcoin. The only current exception to this is Hong Kong-based Bnktothefuture.com, which is thriving by serving bitcoin or blockchain ventures such as Bitcoin Group, BitPesa, Factom, ShapeShift, Startchat, Startcoin, Satoshi Point, Storj.io,, Tibdit, UnoCoin, Uphold, and most recently Synereo.