This is evident from a decision of the Amsterdam court. 36-year-old consultant and tech entrepreneur Piet Huige is happy with the verdict. “I started this lawsuit because I think you don’t treat each other like that.”
Cryptocurrency as a reward
At the beginning of 2019, entrepreneurs launched Rick Schmitz and Martijn Migchelsen their own cryptocurrency with their company LTO Network. Their expectations were high: in business magazine Quote they announced that their token would ‘demolish’ the much more famous Ethereum.
During the preparations, LTO Network, which at the time was still called LegalThings and has since been renamed Firm24, wanted advice from Huige. The entrepreneur behind the Go Wheely pram app had previously been involved in a so-called ‘initial coin offering’ (ICO).
They agreed that Huige would receive a reward of 500,000 crypto coins for his advice. At an introductory value of 4 cents, that would equate to a reward of $ 20,000.
The LTO token was launched in February 2019. Later that year, after the period in which those involved were not allowed to trade in the cryptocurrency, Huige asked for his reward. But the company refused to pay him anymore.
According to LTO founder Schmitz, that would not be necessary because he had also helped Huige with his company Go Wheely. Huige’s advice should be seen as a favor to friends. “I strongly deny that any agreement has ever been reached between us. (…) Good luck!”, The consultant was told.
During the trial, Huige was behind because nothing had ever been written down about the advisory services. The opposing party denied that there was a concrete deal. However, the court concluded from emails that there was an agreement between the parties.
Therefore LTO Network still had to pay the advisor 500,000 LTO tokens. Huige says he is satisfied with the verdict, but does not want to elaborate on the case further.
Schmitz informs his lawyer Willem Jan Tielemans that he is considering an appeal. “This doesn’t feel right for my client,” said the lawyer. “Huige has hardly provided any input. He emailed some documents and blanks. That is not worth $ 20,000 in tokens. Moreover, the value of those has increased considerably.”
The LTO token is now worth about 7 cents. Tielemans emphasizes that the crypto company has now delivered the tokens to Huige, but could still reclaim it after an appeal.