Cryptocurrency Project Fails to Deliver Tokens: What Investors Should Do

When a cryptocurrency project fails to deliver tokens as promised, investors are left wondering what to do. The situation can arise from various agreements, including token purchase agreements or Simple Agreements for Future Tokens (SAFT). In such cases, the team may request investors to accept a longer vesting schedule, smaller allocation, or tokens issued by a different entity.

Before making any decisions, it's essential to review the agreement and its schedules, amendments, and side letters. This will help identify the legal entity responsible for delivering the tokens, the token quantity or formula for calculation, the event or date triggering delivery, and any vesting, transfer restrictions, or investor requirements.

The distinction between a projected launch date in a pitch deck and a binding deadline is crucial. Tokens may be delivered to a restricted wallet before they become transferable or distributed in installments as they vest. The central questions are whether the delivery obligation has been triggered and what conditions remain outstanding.