In 2017 they were still among the heroes of the crypto industry, 2020 will come to an end. The startup TenX, which was started by the Austrians Toby Hoenisch and Julian Hosp, has announced that it will have to cease its services until further notice. The main reason given is the scandal surrounding the German Wirecard, whose customer was TenX, headquartered in Singapore. But even before that, a lot wasn’t going well.
TenX hit the headlines in 2017 with an Initial Coin Offering (ICO) that raised crypto assets worth around $ 80 million at the time. The big plan back then: the founders wanted to create a credit card that was linked to crypto wallets in such a way that you can pay with Bitcoin, Ethereum or other crypto assets on the go or in online shops.
Credit cards are deactivated
But this plan has now come to an end. As TenX announced , the services for customers in the Asia-Pacific region have already been discontinued and the Visa card that the startup had issued to customers via a Wirecard subsidiary has been deactivated. Because in Singapore, the local financial supervisory authority had ordered that Wirecard may no longer process payments from October 14th and must repay customer funds. The function of the TenX Visa card and the option to buy Bitcoin in the app will also be deactivated for customers in Europe.
Customers should not worry about their crypto assets stored in their wallets. “The TenX Wallet is still available even after the cards have been deactivated, so that customers can access and send their cryptocurrencies at any time,” the company says. Customers of the card would be “entitled to a full reimbursement”, more details will be sent out later.
Tokens have lost their value
They also want to reassure the users who paid into the ICO three years ago. They already have a “new platform” that will “change the way we make, spend and keep our money,” it says full-bodied. In this ecosystem, the TENX and PAY tokens would continue to play an “important role”. The tokens are no longer worth much. They have lost about 95 percent of their value since they were issued.
After the successful year 2017, the founders no longer had it easy – not even with each other. As reported, Julian Hosp separated from TenX after allegations of insider trading and has now a new startup with Cake DEFI that is trying to surf the “decentralized finance” wave (Trending Topics reported ). TenX had previously had problems with issuing its credit card because of problems with a partner company.
In the wake of the Wirecard scandal
In May 2020, the long-promised credit card was finally issued to users in Austria and Germany – only to experience another setback at the end of June because the Wirecard scandal carried the startup away. Because TenX relied on the services of the British subsidiary Wirecard Card Solutions (WCS) for issuing credit cards, which has since been sold to the British Railsbank.
It is sometimes not clear why TenX (like other startups) does not work with another company on credit card matters after the setback. It just says vaguely: “We are putting everything into our new platform to accelerate the future of money because we know this is the right path for this company and for our nascent industry.”
Hosp, who, as mentioned, left TenX a long time ago, currently tells the Handelsblatt: “The company is now going down the drain”, and his former colleague Hoenisch has disappeared from Singapore. On the part of TenX, on the other hand, it says: “We have healthy financing, and our management team, including Toby, works very hard every day to bring a quality product to market.”