A consortium of investors has expressed severe concerns about Astra Protocol and its ASTRA token, demanding a meeting with the management team to address these issues. The Switzerland-based Astra Protocol provides a platform offering Know-Your-Customer (KYC) and Anti-Money Laundering services and has drawn attention due to its impressive advisory board, which includes former executives from Samsung, the White House, the Department of Homeland Security, and the European Commission for Trade.
The investors have raised concerns about suspicious ASTRA token movements, claiming that considerable amounts are transferred to CEXs just before announcements, followed by a significant drop in token price. These activities have not been well-explained, sparking the consortium to address the issue with Astra Protocol’s co-founders and team. The letter has received signatures from reputable firms like Shima Capital, Huobi, Moonlight Capital, and Republic, among others.
A major point of contention among the investors is Astra Protocol’s apparent lack of engagement with them. The investors mention in the letter that they have experienced a noticeable disregard for investor communication, with a dismissive approach to valid concerns and questions. Despite attempts to resolve these concerns, the investors have not received any commitment or response from Astra Protocol, leading to more intense demands for action.
Additional worries stem from strategic decisions, such as a sudden six-month extension to the “cliff” period for investors, designed to exhaust the liquid token supply according to the consortium. With the ASTRA token price showing no signs of recovery, investors are increasingly concerned about their investment’s future. Moreover, the group highlighted various announcements and promises that either failed to materialize or had only been publicized by Astra without third-party confirmation. Notable examples include Samsung’s rumored partnership and investment, KPMG’s alleged use of Astra’s compliance technology, and the purported listing of ASTRA on Binance alongside the integration of Astra’s technology across Binance’s Middle East and North Africa regions.
In conclusion, investors have requested a joint call within 48 hours to discuss these concerns in-depth. The letter also stipulates that should the call not occur, investors will jointly publish their worries about Astra Protocol and its team. Although the meeting deadline has passed, it remains unclear whether talks between parties have taken place or are forthcoming.
Source: Coindesk
