The CoinDesk investigation revealed that Jagpal Singh's brother, Joshvun, engaged in a secretive business practice where he purchased properties cheaply and sold them to Tangible, often marking them up as high as 21%. U.K. real estate professionals criticized this practice as having no justification and raising ethical concerns about the seemingly cozy relationship affecting investor funds.
ZilAYO, an investor in Tangible's USDR, highlighted the alarming red flags that emerged just before the company's collapse, stating he had initially invested $50,000 due to the stablecoin’s promise of yield, claiming returns of '20-80%' largely due to rental income from over 200 properties owned by the project. His trust in Tangible deteriorated as the financial unraveling began.
The sudden liquidity crisis on October 11, 2023, which saw USDR plummet from its pegged value of $1 to just 50 cents, was triggered by a panic among investors who found themselves unable to withdraw their funds. This event pointed to a deeper systemic issue within the project, particularly the undisclosed relationships at play and the lack of sound financial practices.
Tangible's rapid growth and the involvement of its CEO's brother highlighted potential conflicts of interest that could have serious implications for investor confidence and the integrity of the crypto real estate market. U.K. real estate academics reviewed the investigation and deemed the pricing strategies employed by Joshvun Singh’s enterprise as unwarranted, raising ethical flags that could stain the project’s reputation.
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