The Fyooz Story in a Nutshell — Too Long a Road to Mass Distribution
When Fyooz was founded in February 2019, we were convinced that it wouldn’t be long before celebrities and brands discovered tokens and started using them for their own benefit. Fame is an intangible product that can’t be monetized in a direct way. We believe that tokenization would eventually solve this…
When Fyooz was founded in February 2019, we were convinced that it wouldn’t be long before celebrities and brands discovered tokens and started using them for their own benefit.
Fame is an intangible product that can’t be monetized in a direct way. We believe that tokenization would eventually solve this problem. So the idea of Fyooz was born to issue star tokens and provide them with utilities that fans can benefit from.
So we put this idea on paper and presented it to investors. The idea was well received! It didn’t take long until we had the startup capital together. So we were able to start developing the app, hire people, move into an office, write the Whitepaper, do legal clarifications, and acquire stars. Up to this point, everything seemed to be going according to plan, but the first setback was not long in coming. Just in time for the planned launch of Fyooz, there was a lockdown for well-known reasons. This caused some investors to withdraw, the entertainment industry to be in turmoil and the crypto market to suffer a setback for the time being.
After all, the lockdown had its positive sides. At that time, practically everyone was available by phone at any time. We took the opportunity to call the most famous artists in Switzerland to get them on Fyooz. And sure enough, in just a few weeks, we brought several dozen Swiss celebrities onto the Fyooz app. So we had built a finished prototype and were able to test it in the market.
Then, in August 2020, we launched the FYZ token. We were able to witness that our quite well-planned marketing campaign resulted in a pump — only to unfortunately crash a few days later. All the consultants, whisperers and influencers were gone after a few weeks — and with them the token value of FYZ.
At least by then we had a working app with celebrities, brands and tourism sites mentioning their tokens in newsletters and on social media. And was there any interest at all from end users? Short answer: no.
The conclusion: Swiss celebrities aren’t even enough to get a few users on the app. So if we wanted to see a mass adaptation, we would have to enter the American market as soon as possible (even though the regulatory hurdles were bigger than in Switzerland). We didn’t let the falling FYZ rate discourage us and found partners in the US who could give us access to big brands. We had already closed our first deals in the fall. Then, in winter, NFTs became an issue for the first time. We took the opportunity to launch the new token FYZNFT along with the announcement that Post Malone would be releasing a Beer Pong token. With this interim success, we made the turnaround, Fyooz was back on everyone’s lips. We continued with Cars Coin by West Coast Customs and a few more American sports stars and brands.
In the spring of 2021, everything seemed to be going according to plan again. But unfortunately, we made a crucial mistake. The decentralized trading platform Uniswap, where all our trading took place, announced a new “better” version. Instead of waiting a few more weeks and watching the new version, we migrated all our tokens from Uniswap V2 to Uniswap V3 as soon as the update was available. The reason we did this was to take advantage of higher trading rewards and less bundled liquidity. But then we experienced the crash in May 2021. And what happened to our tokens? Unfortunately, the crash was so fast and large that all migrated tokens slid into impermanent loss. The tokens were lost along with their Ethereum trading pair. Had we not migrated, only the value would have been lower — but not a total loss.
In retrospect, that was the breaking point from which we never recovered. We brought back liquidity in the form of ETH with the Fyooz token FYZ, but without the FYZNFT train, it was now difficult. We also tried to revive Cars Coin by putting new liquidity on the old version of Uniswap. But that didn’t do much more. From then on, people were in unstoppable selling mode.nevertheless, we kept going and started new promising projects to develop Fyooz and generate income. Until the end of December last year, we worked really hard and strongly believed in making an exploit for the benefit of the community, our friends, shareholders and investors. But we didn’t manage to turn it around in a sustainable way.
What remains as a conclusion: We were one of the first, if not the first, to try to implement the idea of a tokenized world. We still believe that creators, athletes, cities, brands, and even individuals will one day have their own tokens. We are already seeing more and more organizations and brands like the National Basketball League, UFC, Formula E, Panini, etc. jumping on this bandwagon. But the road to mass distribution seems even longer than we thought a few years ago. Sometimes it can happen that the first mover has an advantage. In our case, unfortunately, that wasn’t the case. We ran out of resources, so it is with a heavy heart that we have to give up Fyooz.
We are very sorry for everyone who believed in Fyooz or the team and lost money in the process. We would like to sincerely apologize for that. We did our best, but it was not good enough to make it in the long run. We have no other choice but to say goodbye.