Venom Foundation’s Enigmatic Dissolution: Unanswered Questions

Venom Foundation, a blockchain company that launched with much fanfare in 2022, has recently announced its decision to dissolve. The official statement, released on platform X on December 16, 2023, attributed this move to a change in the company’s strategic direction. However, the announcement has generated widespread speculation, leaving numerous questions unanswered and prompting concerns about the company’s true motivations and the future of its projects.

From its inception, Venom Foundation made ambitious claims, asserting itself as the world’s first compliant blockchain and proposing a $1 billion venture fund for Web3 projects. Despite an initial investment of $20 million in Nümi Metaverse, no further deals materialized. In the fall of 2023, signs of the company’s declining fortunes emerged as Executive Mustafa Kheriba hinted at a new career chapter on LinkedIn, and Chairman Peter Knez assumed a role in a conservation-focused fund named O.N.E Amazon.

In September 2023, the company’s Medium page reported an apparent upward trend in its testnet performance, with claimed figures of 594 million transactions, an average of 51.9 transactions per second, 81 million smart contracts, 1.5 million wallets, and 17.1 million NFTs minted. However, these achievements are now viewed with skepticism in light of recent events.

The dissolution announcement intensified scrutiny when it declared that no token generation event had occurred, contradicting earlier statements and raising doubts about the legitimacy of the company’s claims and the fate of its projects. Moreover, the suggestion that the foundation would retain control over the company’s affairs post-dissolution has sparked concerns about transparency and accountability in its operations.

It’s noteworthy that Venom Foundation is linked to a licensed digital asset exchange in ADGM, named VENOMEX Limited. Interestingly, this exchange predates the foundation itself, raising questions. Initially known as Arabian Bourse, it gained significant PR despite lacking a license. Subsequently rebranded as Yoshi Markets Limited, it attracted attention after securing a license and later underwent a third transformation into VENOMEX following the foundation’s establishment. The exchange’s evolution prompts inquiries about its original and current backers, adding another layer of unanswered questions to the unfolding situation.

Adding to the complexity, VENOMEX CEO Arshad Khan, previously interviewed by Unlock, has also left the company to join FILS, further contributing to the uncertainties surrounding Venom Foundation and its affiliated entities.

The dissolution of Venom Foundation has left a multitude of unanswered questions, creating uncertainty about the future of its projects. The company’s ambitious claims and recent leadership changes have cast doubt on its true motivations and the reasons behind its dissolution. The lack of clarity regarding the status of its testnet and associated dApps has added further confusion to the situation.

Established in 2022 under the ADGM Foundations Regulations 2017, the Venom Foundation sought to clarify its dissolution in relation to ADGM by stating, “Our choice to dissolve is specific to our present objectives and not a reflection on the ADGM environment. Looking ahead, the Venom Foundation remains open to exploring future opportunities within ADGM.”

While this development may be perceived as a setback for ADGM, there is confidence that it is in the best interest of both ADGM and the broader blockchain and crypto industry in the UAE. Future details from ADGM and other involved parties are anticipated to provide clarity on this matter in the near future.

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