Byte Power loses deal to manage crypto carbon credit Initial Coin Offering
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Wouldbe cryptocurrency play Byte Power is having a tough start to the year.
First it had to sack its Singapore crypto exchange developer over allegations of missing crypto tokens.
Now a deal in Canada to advise on an Initial Coin Offer (ICO) has fallen over.
Byte Power (ASX:BPG) signed a preliminary deal in December to manage an ICO for small Canadian oil and gas company Synstream Energy.
But on Monday, the company told investors it won’t happen: Synstream doesn’t want to go ahead with issuing crypto carbon credits.
It means Byte Power, which made $31,000 last quarter and spent $232,000, won’t be getting a $100,000 fee for the deal.
Byte Power has been contacted for comment on the loss of their first ICO contract.
Under the deal Byte Power was supposed to research the potential of issuing cryptocurrencies backed by assets such as natural gas, environmental processing or carbon credits.
When asked at the time why Byte Power was qualified to advise on a Canadian energy ICO, chairman and CEO Alvin Phua said they were put together because he knew one of the major shareholders at the prospective client.
Synstream is a $C3 million ($3.1 million) company that’s part of a consortium to build Canada’s first commercial gas-to-liquids plant, which will turn natural gas into diesel.
To do this, they say on their website, they’ll have to raise money.
While the consortium is yet to put a number on how much the 420 barrel/day plant might cost, a report by global engineering company Black & Veatch this year said a 450 barrel/day plant cost around $55 million.
Synstream instead has continued with a plan to raise $C1.5 million in a private placement from the Canadian market.
Byte Power was suspended from trading in late December as it assists the ASX in its enquiries into a possible change in the its business activities.