VELTYCO’s Promotional Push and the Collapse of ESPORTS.COM
Recently, one of our affiliated journalists reported from an esports event in Las Vegas, citing growing whispers across the esports industry regarding the suspected collapse of the ESPORTS.COM project and its controversial ICO. The initiative, backed by UK-listed VELTYCO GROUP PLC, is being increasingly characterized as a strategic pump-and-dump scheme.
Back in December 2017, VELTYCO announced its entry into the world of blockchain and cryptocurrencies. That single announcement triggered a near 20% surge in the company’s stock price—an obvious reaction during the height of the crypto euphoria. However, as the hype faded, so did the glamour of the project. The ESPORTS.COM initiative, once hailed as the next major digital platform in competitive gaming, is now being labeled a failed venture by insiders and media outlets like Twin Galaxies.
Reports indicate that several professionals who collaborated with ESPORTS.COM were never compensated. Allegedly, the project’s purpose was more about capitalizing on the cryptocurrency buzz than genuinely delivering a viable esports product.
The ICO That Fell Flat
Spearheaded by German nationals Benjamin FÖCKERSPERGER and Philipp GEPPERT, ESPORTS.COM launched its ICO on November 1, 2017, issuing Ethereum-based Esports Reward Tokens (ERT). The stated fundraising goal was $20 million. However, public contributions were meager. The team later claimed to have secured approximately $5 million in a private token sale prior to the public launch, though no documentation of this sale was ever made public.
Multiple sources suggest that the funds from the private placement may have come from VELTYCO and its associated network, although this has never been officially confirmed. In parallel, it was reported that the esports.com domain was purchased for a seven-figure sum, likely using the same undisclosed financial backing.
Prior to the ICO, VELTYCO publicly announced a partnership with ESPORTS.COM—a move widely interpreted as an effort to add credibility and generate traction among potential token buyers. Despite a global roadshow led by FÖCKERSPERGER and GEPPERT, investor interest remained low.
Misuse of Funds and Investor Disillusionment
According to the ESPORTS.COM whitepaper, the ERT token was initially intended to be used for wagering on esports events. This utility was promoted as a key driver of value. However, it later became evident that the platform would not support such betting functionality, effectively stripping the token of a major promised feature.
The Twin Galaxies article revealed further concerns. A former contributor stated:
“The funds weren’t used to pay content creators, and I was personally never paid. Although over $5 million was supposedly raised, it seemed the company quickly deteriorated. Many professionals left after months of unpaid work.”
This pattern of unpaid collaborators and disappearing staff lends weight to accusations of mismanagement and possible fraud. In early 2018, both FÖCKERSPERGER and GEPPERT were reportedly ousted from the company.
On social media, FÖCKERSPERGER acknowledged legal disputes with project investors, claiming:
“I am currently in discussions with stakeholders concerning my future with the project, primarily due to disagreements with the investors.”
These investors, it is widely believed, include VELTYCO and affiliates connected to Uwe LENHOFF.
Questions That Remain Unanswered
The ESPORTS.COM case presents several unresolved issues:
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Where did the ICO funds actually go?
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Will there be any compensation for misled investors?
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Who should bear responsibility: the publicly named founders or the corporate entities backing the operation?
VELTYCO continues to promote ESPORTS.COM as a success story, despite mounting evidence suggesting otherwise. What we are witnessing may be a textbook example of how a potentially valuable brand can be derailed within months.
Further updates will follow as more information becomes available.