Gold Fund Trader, operating under the registered name GFund
Technologies in the UAE, has announced its permanent closure. The firm, which
commenced operations five months ago, encountered several challenges leading to
this decision.
Launch Delays Prompt Investor Withdrawal
The company initially planned to launch on August 15.
However, the launch was delayed due to issues with their web designer, and
problems with their technology provider. These delays resulted in the
withdrawal of a major investor.
Despite these setbacks, Gold Fund Trader proceeded with the
launch. The firm distributed approximately 150 accounts through giveaways but
has since generated only $600 in sales from evaluation accounts.
Hello everyone,This is a very tough conversation to have. We been working in goldfundtrader for 5 months now ! UPS and down ! We have multiple experience before with this industry !Big investor was ready to provide funding of 250k usd for 50% of stake in gold fund…
— Gold Fund Trader (@goldfundtrader) September 12, 2024
Cash Flow Issues Force Closure
Of the 160 accounts created, 158 were acquired through
giveaways. The firm reports 90 active accounts with no funded accounts or
pending payouts. The total active evaluation size is under $1 million.
Due to cash flow issues and a lack of liquidity, the firm
has decided to cease operations. The founders stated that they chose not to
engage in unethical practices to maintain the business. Gold Fund Trader has
explored potential acquisition offers from other proprietary trading firms but
did not secure any agreements.
Meanwhile, another prop firm, Fundedlions,
has ceased operations and is transitioning to MetaTrader 5, as reported by Finance Magnates. The CEO has
advised users to avoid accessing their accounts temporarily during this period.
In a communication to clients, the issues are attributed to
Dominion Markets, with claims that the company has faced challenges with this
technology provider in the past. According to statements on the company’s
official Discord, Dominion Markets has recently increased the cost of account
creation fourfold and introduced additional fees.
This article was written by Tareq Sikder at www.financemagnates.com.
