Confido: How to Raise $374,000 ICO and Disappear

Confido: How to Raise  $374,000 ICO and Disappear

The ICO Confido, which sold tokens called CFD, attracted $ 374,000 from investors and after that has completely vanished! The startup removed all information from its official website and got rid of accounts in social networks.

Today, the world of ICO and Crypto-currencies is the Wild West from the world of finance. People use this unique opportunity to attract funding in their projects, while others are looking for easy money and take advantage of the lack of uniformity of law.

So, there is another, negative side: investors are practically not protected from deception.

A few days ago it became known about such another incident: this is about a startup Confido, which didn’t look like a scam.

Confido was considered a company that was going to present the world with secure peer-to-peer transactions using smart contracts and tracking delivery.

Initially, the tokens traded at $1.20, but as a result of the series of negative events, the exchange rate dropped to about $ 0.02.

The ICO company was organized by TokenLot, which makes fundraising easier. During the ICO, the team managed to raise more than $ 350,000 in three days.

However, in the last few days, it turned out that the whole project is a scam.

On Monday, November 20, users couldn’t enter the Confido website. Later, all project accounts on social networks, such as Twitter, Reddit, Facebook, and Medium were deleted. After that the developers made an important announcement in the blog on Medium, saying that they had some legal problems.

Nevertheless, the public doesn’t believe in such statements: "I was deceived. This is a valuable lesson, in all senses," said one of the startup investors. Another said that everything that happened is a slap in the face of all investors.

Initially, the tokens traded at $1.20, but as a result of the series of negative events, the exchange rate dropped to about $ 0.02.

ICO is a new way of quick financing

As it always happens during a boom, many play in bad faith in the ICO world. Given that abuse is not uncommon in connection with bitcoin and other cryptocurrencies, it is not surprising that ICO attracts too many scammers.

According to Smith + Crown, the organizers of the ICO often bypass the usual rules for raising funds, thereby losing the ability to legally protect the interests of investors:“In order to try to avoid legal requirements that come with any form of a security sale, many ICOs today use language such as ‘crowdsale’ or ‘donation’ instead of ICOs. They also use legal disclaimers and language to the participants that this isn’t a securities sale. It is unclear whether this is sufficient for global jurisdictions to treat it differently from a securities sale. To date, the matter hasn’t been litigated in a court of law.”

So, the main question is: Should you invest in ICO?Yes, if you are willing to put your money at risk for the sake of an idea that may prove to be a failure.

What is a Security Token?
Security tokens became very popular, but do you really know what is STO?STO is Security Token Offering, which is identical to an ICO. In this, there...
1 in 7 Chinese Piled in Cryptos, Only 2% Not Familiar With BTC
Chinese are not only aware what cryptos are but they also gladly pile funds into them. The survey results are showing that 1 in 7 Chinese citizens...
WSJ: Bitcoin Trading at Strong Correlation With Traditional Assets
Within the past days, the ratio between Bitcoin and conventional assets markets has been high, writes the Wall Street Journal.What Are The...
Bitcoin’s «Dead» in a Long-Run, Says Young BTC-Millionaire
On December 17, on a day when a year ago bitcoin hit the all-time $19,000 record, the «big daddy» MarketWatch journalist, teen crypto-celeb Erik...
SEC Charges DJ Khaled and Mayweather for Misleading ICO Investors
The American SEC charges two celebrities for pumping up ICOs without letting investors know they were paid off for promotion. These celebs are a...
Crypto Venture Capitalist: BTC Investors Need to Endure As Amazon’s Did
Cyber money venture capitalist, CryptoOracle partner Lou Kerner suggested viewing bitcoin as a survivor like Amazon after 1995-2000 dot-com bubble...
Morgan Stanley Report Implies Bitcoin’s New Institutional Asset Class
A novel report from Morgan Stanley, the American multinational investment bank, states that bitcoin attracts more and more institutional investors...
Venezuelan Petro Available For Public Sale
After months of delay, Venezuela’s dubious cyber-coin Petro has entered the public market. On October 29, the state’s Economy Department informed...
Financial Services Giant Fidelity Launches Crypto Trading Platform
Fidelity Investments, a financial services titan with more than $7 trillion in client assets, has leapt onto cyber-money bandwagon too. This week the...
First Swiss Crypto Asset Management License Issued For Crypto Fund
For the first time in Switzerland Crypto Fund has been authorized to serve institutional patrons in the niche of cyber assets. The document which...