Back in 2014, an interesting campaign was launched for crowdfunding, called Plastic the project looked for funding via pre-orders on the card’s own website, from which they raised more than $9 million in funding from those who pre-ordered the card.
At first, it seemed as though it was well worth invested into as it seemed as the future of payments, or very close to it.
Plastic promised to be cable of holding 20 credit and debit cards in a digital format onto a single card that the user could switch between and carry around with them, plus it was only $155 and it was supposed to be shipping very shortly after the campaign was completed.
It’s now 2017 and there’s still not a single card out there in the public and it doesn’t seem that there ever will be, that’s because Plastic has today announced on their website that they are planning to file for bankruptcy and shut down the company after failing to receive further funding.
They revealed this with the following statement:
For the past 3 years, our mission here at Plastc was to build and deliver the most technically ambitious smart card on the planet. After making enormous leaps in development, product innovation and progress towards our goal, Plastc has exhausted all of its options to raise the money it needs to continue.
Plastc, Inc. is exploring options to file Chapter 7 Bankruptcy and will cease operations on April 20, 2017.
While we have fallen short of our goal, we are proud of our team and the effort that went into developing a working Plastc Card. However, without the necessary capital to continue, all employees have been let go, which means that Customer Care and Social Media channels are unmanned or have been shut down.
As part of this, Plastic has revealed that they have laid off all of their employees, shut down its customer care programs and closed the social media channels that link to the card, and with this $9 million has simply disappeared.
This shows yet another reason to be cautious about crowdfunding, despite the many successes, there are often some failures, however, in particular, Plastic did not launch with the same assurances that you receive from campaigns on crowdfunding services link Kickstarter or Indiegogo because it was launched on their own website and not on one of these services.
Plastic did say that they attempted to save the company, hoping to close $3.5 million in funding in February this year, but that failed.
They then sought a $6.75 investment deal but that also fell through.
We don’t yet know what happened to the $9 million that they received for pre-orders of Plastic, or if there is any possibility that backers will receive the money that they pledged back, however, that is extremely unlikely.
We will update you as we hear more, in the meantime, you can read more about the news at the source link below.