Loom Network denied exit scam

The developers of the startup Loom Network announced a change in the profile of their activities, but rejected it earlierspread information about the exit scam of the project.

Message that Loom Network«dead», said the head of the cryptocurrency educational platform Bitfalls Bruno Skvorz. He drew attention to the fact that the team stopped communicating with users through the usual communication channels.

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The Telegram Loom Network chat was indeed closed on May 5, leaving a message:

“This channel is closed. Loom Network changed direction from blockchain games to corporate solutions. Therefore, we decided to consolidate public channels so that our employees could concentrate on sales, support and interaction in the corporate direction. ”

On Reddit about &#171;death&#187; The project was written almost a month ago. Some users noted that there has been no news from Loom Network since the appointment of the new CEO.

In late February, Matthew Campbell resigned, and Vadim Macagon became the new CEO of Loom Network.

In early April, analysts also noticed the outflow of validators from the Loom Network and the transfer of control over more than half of the token tokens to the Binance exchange.

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One of the validators, Stake Capital, announced the transfer of infrastructure to Matic, calling the Loom Network a dead project that key team members left.

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Loom Network responded to rumors of an exit scam by publishing a message to the community updating the project's status.

It states that the company has facedwith a significant financial burden due to the cost of technical support and developers. The coronavirus epidemic also had an impact on the project’s capabilities, the Loom Network noted.

&#171;We will focus on more profitabledeveloping enterprise blockchain for the healthcare and government sectors and will continue to create great technologies &#8212; how they did it from the very beginning &#8212; but let's move away from games and app development as a source of growth&#187;, &#8212;the message says.

The startup team also responded on Twitter to media reports about a possible exit scam, emphasizing that they really changed the profile of their activities, but “haven’t disappeared anywhere.”

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Recall that in 2018, the Loom Network introduced the solution for scaling Ethereum.