Live Crypto conversation- ICO Scam/ Fraud/ Confido ICO runs away with money/and More
An Ethereum Startup Just Vanished After People Invested $374K
A startup on the Ethereum platform vanished from the internet on Sunday after raising $374,000 USD from investors in an Initial Coin Offering (ICO) fundraiser.
Confido is a startup that pitched itself as a blockchain-based app for making payments and tracking shipments. It sold digital tokens to investors over the Ethereum blockchain in an ICO that ran from November 6 to 8. During the token sale Confido Coin Exchange , Confido sold people bespoke digital tokens that represent their investment in exchange for ether, Ethereum’s digital currency.
But on Sunday, the company unceremoniously deleted its
to the company’s now-private subforum on Reddit, citing legal problems that prevent the Confido team from continuing their work. The same message was also
“Right now, we are in a tight spot, as we are having legal trouble caused by a contract we signed,” the message stated (a cached version of the Medium post is viewable). “It is likely that we will be able to find a solution to rectify the situation. However, we cannot assure you with 100% certainty that we will get through this.” The message was apparently written by Confido’s founder, one Joost van Doorn, who seems to have no internet presence besides a
Even the Confido representative on Reddit doesn’t seem to know what’s going on, though,
Confido Coin Exchange , “Look I have absolutely no idea what has happened here. The removal of all of our social media platforms and website has come as a complete surprise to me.” Motherboard reached out to this representative over Reddit, but hasn’t received a response.
Confido tokens had a market cap of $10 million last week, before the company disappeared, but
in the Confido thread on popular cryptocurrency forum Bitcointalk. “This was a very valuable lesson for me Confido Coin Exchange , in both senses of the word.” Another user, masternode, was more measured, but no less angry. “This is a punch in every single investor's face,” they
At this point it’s unclear what will happen to the $374, Confido Coin Exchange ,
(TokenLot does this for many startups), sounds like it’s having a busy day. “We’re the only remnant online right now in terms of people contacting us asking for answers,” said Eli Lewitt, co-founder of TokenLot, over the phone. “These were very good scammers.”
While many cryptocurrencies are still trying to find a useful application in the real world, Ethereum has become a darling among financial types because ICOs allow startups to raise huge investments in lightning-fast funding rounds. But a dark spectre has loomed over the frenzy
: What happens if a bad actor is hiding out among the bunch, and simply disappears?
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