Dear Alethena community, dear customers and partners
We hope you have had a successful start into the new year. As you may have noticed, it has become rather quiet around Alethena in the past weeks. This is due to the fact that the team has shifted its full attention to securing the necessary financing for the continuation of the project. Unfortunately, this endeavour has remained unsuccessful to date.
Following the successful launch of quitt.ch, Alethena’s first customer with tokenized shares and Share Dispenser, last September, the team was highly motivated to advance and continuously improve the product to offer its customers even more value in the future. Based on customer feedback the team was able to confirm what has been observable in the blockchain scene for quite some time: projects are heavily technology-driven, often calling into question their suitability for everyday use. Subsequently, the necessary development steps, predominantly driven by user experience, were defined.
With Fabio and Dominik joining the team as software engineers last fall, the aim was to decisively advance the development of the product in the months ahead. At the same time, following the issuance of baking licenses to newly founded cryptobanks in Switzerland, a secure and simple custody of tokens/shares, one of the central problems regarding the marketability of the product, seemed within reach. In various discussions, the team received very positive feedback for its product and its proposed roadmap.
During the financing round in the following weeks, however, Alethena’s planned business model was called into question on various occasions and possible adjustments were discussed. On the one hand, the dependence on commercial banks as custodians was a criticism, on the other hand, the composition of the team was suboptimal with respect to the development effort at hand.
In the weeks that followed, the team met with a large number of possible stakeholders and potential investors to find a solution for the continuation of the company, well aware that raising venture capital in the current market environment, with mass adoption of the technology being a long way off, would be no easy task. Furthermore, due to the, still very technical handling of its product, Alethena does not achieve cost-covering sales at this point, rendering any financing efforts even more difficult.
Based on this experience and without any prospect of an improvement in the situation, the team has heavy-heartedly decided to discontinue Alethena and subsequently dissolve the company Equility AG.
In these difficult times we would like to thank you, dear community, dear customers and partners. We are infinitely grateful to you for believing in us and our project and for always accompanying us on this path. We are sorry that we cannot start into 2020 with more positive news, but we wish you all the best for the future.
With the best regards
Markus, Tim, Alex, Benjamin & Pascal