Many crypto projects entice people to purchase utility tokens in advance of the product . The arrangement is, the company states that it will build a working product within specific time frame as advertised in a whitepaper/website normally via a roadmap. They sell the utility tokens in advance via a token sale or ICO to future customers i.e the users of the platform.

If the promised product is not delivered on time is there a case to sue these companies for false advertising?

One specific example of this is Unikrn and their utility token Unikoingold, the second failing crypto project that billionaire Mark Cuban backed in 2017. They have delivered on some of the features as advertised but have failed to deliver on what some may argue are the most significant features.

This project is currently being sued for soliciting money and for selling a unlicensed security. Unikrn’s position is, they asked people that were interested in the product/service to buy the tokens in advance of a functional platform with a promise to create the product that the token buyers could then use once it was built. They claimed, and still do, a universal esport token but the platform cannot be used universally and as mentioned above they have failed to deliver the product as promised in the time they had specified.

Can they be sued for this. Is this not false advertising?