After securing $575 million in its 2018 initial coin offering (ICO), media streaming platform TaTaTu has pivoted away from the blockchain- and crypto-based facade it presented.
Film producer Andrea Iervolino initially presented the TaTaTu platform as a blockchain-based streaming platform with its publicly-traded cryptocurrency.
Now that its token sale has started to yield results, TaTaTu has become a prime example of a platform that rode the blockchain wave to secure funds and then moved on.
Iervolino said that crypto was never the point of the platform. It’s not even a blockchain business, he said, noting that TaTaTu has only one blockchain component in its system.
No significant activity
According to analysis using Alethio’s crypto reporting tool, TaTaTu’s ethereum-based TTU token hasn’t shown any significant activity since August 2018.
Seventy percent of all TTU transactions occurred on July 13, 2018, and August 1, 2018—a few weeks after the company’s ICO finished.
Crypto users, however, are reportedly still trying to trade TTU on public exchange platforms.
Iervolino explained that the ICO was mostly done through private investments despite what the platform’s white paper initially outlined.
He added that TaTaTu has since switched to a platform-based points system without a public blockchain, hence the lack of significant activity shown by Alethio.
Former TaTaTu employees seem to have no idea where the platform is genuinely headed, either. As the platform’s sole driver, Iervolino is the only one who does.
“It’s a young project in the startup phase,” one anonymous former employee said. “A lot of projections and idealistic things were mentioned in the white paper but have not been delivered.”
”It’s hard to predict the future regarding what [Iervolino’s] plans are.“
Another anonymous source indicated that the company’s reserves are being used to strike token deals with big Hollywood names.
Iervolino himself confirmed that Antonio Banderas received TTU when he became attached to the former’s Lamborghini biopic project.
The recent pivot away from blockchain has also reportedly led to some early contributors distancing themselves from Iervolino and his platform.
“Whoever invested in TaTaTu in the beginning did it thinking that they would be buying a token that can work on a decentralized platform and could be traded,” said a former TaTaTu cofounder who chose to remain anonymous.
“I think that [Iervolino] is not behaving fairly to the people that invested in TaTaTu.”
TaTaTu critics have characterized the ICO as opportunistic, but Iervolino claimed that the company is instead creating a circular economy.
“It’s a streaming platform, mixed with social media, that shares the value with the users,” he said.
TaTaTu users can get tokens when they watch content on the TaTaTu platform. Users can then exchange tokens for coupons from TaTaTu’s various online and retail partners.
Italian users also have access to an exclusive e-commerce site that sells test products bought with TTU.
Iervolino wouldn’t reveal how many users have already signed up for TaTaTu.