The founders of the fintech Rubarb can advertise with a well-known relative: their uncle Olaf Scholz is said to stand for a serious investment. Recently, they are promising up to 3.8 percent interest with a new crypto platform. But even these entrepreneurs fail in the crypto market.
The crisis on the crypto market obviously does not stop at well-known names. The brothers Fabian and Jakob Scholz, nephews of Chancellor Olaf Scholz, wanted nothing less than to democratize investments with their fintech and the Rubarb app. "More money for your dreams" says the website. But after less than two years, the company filed for bankruptcy, as reported by the "Handelsblatt".
Funding commitments had been withdrawn, Fabian Scholz told the newspaper. Now it is about "being able to use the restructuring options of the insolvency code at an early stage". The founders had just launched their new platform Kudona, which promised to make money in the easiest way in the so-called DeFi area, i.e. in the decentralized financial sector, where tokens are speculated on. The principle of Kudona: The users' money is put into stable coins that are lent on DeFi platforms. In return, the operators promised up to 3.8 percent interest.
The website still has the goal of wanting to become one of the largest financial companies in the world, financed by venture capital. According to the report, the brothers had collected a total of 4.8 million euros for Rubarb. Savers can invest in stocks and bonds via the app of the same name. Kudona is organized as a 100 percent subsidiary. According to Fabian Scholz, Rubarb will no longer be able to pay salaries at the end of July. Almost half of the Rubarb workforce has to go according to information from the "Handelsblatt".
Investors should have been alarmed for a week at the latest when the founders referred to the "crypto winter" in a letter to them. One of the donors was outraged by the newspaper: "From a fundraising in February, how can you drive the store to the wall in less than five months?" It is possible that he was blinded by the relationship to the chancellor when assessing the team, the investor admitted. "I thought they couldn't do Wild West there."
Market analyst Timo Emden, who specializes in cryptocurrencies, is not surprised by the bankruptcy. After all, the entire industry is suffering, especially in the DeFi sector, several companies have collapsed in recent months. "And the number of unreported cases should be very high," says Emden in an interview with ntv.de. Due to the crisis in the crypto market, "all business models are being put through their paces, investors are rethinking their decisions and, if in doubt, are withdrawing their money". Because there were further downside risks. "The deeper the market as a whole, the more companies face existential difficulties," states Emden.
Crypto critic Jürgen Geuter is not sad about the market shakeout in the DeFi space. In an interview with ntv.de, the freelance computer scientist and consultant said there were "actually no reputable providers". He calls for regulation of the market. Olaf Scholz, on the other hand, is unlikely to be happy about the Rubarb bankruptcy, as his nephews once advertised their uncle's job as finance minister. Investors and the media showed interest. "Uncle Olaf Scholz and the attraction of the stock market" was the headline in the "Frankfurter Allgemeine". ntv.de also reported: "Scholz's nephews are planning a stock revolution".
