The Australian firm Everledger has voluntarily gone into administration. Everledger is an expert in utilizing blockchain technology to manage and identify high-value goods including diamonds, precious metals, clothing, artwork, and wine. According to reports, the company’s management took this action because it was unable to obtain the anticipated investor investment. Employees at the company, therefore, got layoff notifications on March 31. A variety of companies have adopted Everledger’s blockchain-based solution to provide supply chain transparency and fraud prevention. But it seems like the business has had trouble raising the cash it needs to stay open.

Brisbane-Based Blockchain Company Raises $51.7M in External Investment

Everledger, a blockchain company with offices in Brisbane, has raised more than $51.7M in external funding over the previous eight years. Tencent, the Chinese multinational corporation and proprietor of the social media platform WeChat, is the company’s most well-known investor. Tencent has a history of making investments in foreign firms, with an emphasis on the video gaming sector. The business purchased a majority investment in Riot Games, maker of League of Legends, and also holds a minority stake in Epic Games, the makers of the well-known video game Fortnite.

Everledger won $3 million from the federal government’s blockchain pilot grant in 2021 in addition to outside funding. Tencent, a Chinese multinational corporation, took the lead in Everledger’s Series A fundraising round in 2020. According to reports, in 2021 the corporation matched an additional $3.5M received through the United Kingdom Government’s Future Fund. In the past, Everledger has drawn funding from many significant sources, including Rakuten, GMP Securities, and Fenbushi.

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Nevertheless, despite the company’s outstanding history of profitable fundraising, its most recent capital round was unsuccessful. The source of the unsuccessful investment round is still unknown. Due to this lack of investment, the business has had to go into voluntary administration and lay off its employees. The management of the company’s assets and liabilities will now fall under the administrators’ purview. Employees of the company received notices of redundancy on March 31st, and Vincents Chartered Accounts was named as the administrator on April 24.

Regulators Target Cryptocurrency ‘Earn’ Products in Australia

Concerns about the cryptocurrency and blockchain sectors have undoubtedly increased in the wake of FTX’s collapse. Since late December, ASIC has been cracking down on Bitcoin “Earn” items made locally by Finder, Swyftx, and Block Earner.