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

post image

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.

Our top trading bots

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.

Tom Lee Stands By His $15,000 Bitcoin Prediction Despite Massive Fall
A few days ago Fundstrat’s research head Tom Lee predicted bitcoin’s price to spike to $15,000 by the end of the year once it passes the breakeven point....
Google Cloud Partners With Digital Asset to Ease The Life of Blockchain Apps Developers
Digital Asset, a fintech entity that develops DLT-based products, is joining with Google Cloud to work on a kit of instruments and supplies for blockchain-purposes....
Survey Shows 38% of South Africans Wished They Invested In Cryptos Before
South Africans seem to be very interested in cyber assets. At least, that’s what the recent survey has shown. According to it, 71% of respondents of the...
Amazon Partnering With a Startup To Bring Blockchain To Its Clients
Facebook is not the only tech titan that is looking into the blockchain and cryptos. Amazon, and its cloud computing arm, in particular, is considering...
New Exchange Using NASDAQ’s Tech Announces Launch
Another cyber-currency trading venue is entering the market. So this time it is reportedly powered by NASDAQ, one of the most prominent stock exchanges...
Ether Expected to Outperform Bitcoin Before 2019, Survey Shows
Different participants in the sphere of blockchain expect the leading cyber coins in the world – bitcoin and ether – to prosper and their price to more...
Bank of America Admits it Might Not Withstand the Popularity of Cryptos
For quite a long time crypto experts have been warning financial establishments, banks in particular, that they might not be able to rival the growing power...
Qiwi Founder Invested $17 Million In Telegram ICO
Qiwi founder Sergei Solonin invested in ICO Telegram $17 million; he told journalists on the sidelines of the Russian Investment Forum in Sochi.Previously,...
Stock & Crypto Markets Plummeting Down. Any Correlation?
Within the past days, both stock and crypto markets have been heading downwards. Both of them started showing some drastic trends on Friday, February 2...
Worse Than Mt. Gox: Japanese Crypto Exchange Hacked, $530 million of NEM Stolen, Officially
Recently happened what is believed to be the major crypto crack in the history. One of the largest Japan-based cyber money exchange platform CCN. Hot...
Microsoft, IBM’s Ledger and UN Supported Blockchain Project for Digital IDs
The blockchain is receiving more fanfares in the world of technological titans. Recently, the American multinational tech company Microsoft, as well as...
Study Shows 25% of BTC Users Involved in Illegal Activities, Compares Bitcoin to Drugs Black Market
Bitcoin skeptics often resort to the coin’s risks of being used for malicious purposes, such as money laundering, terrorism supply, drugs and weapons...
Bitcoin Grows Amid News That Elon Musk’s Rival Piles Millions Into BTC
The person, who around 17 years ago took Elon Musk’s position of the CEO at PayPal within the leadership feud, has now hit the headlines regarding cryptocurrency...
Most Known Persons in Blockchain in 2017
2017 has become a true breakthrough for the crypto-industry. The rapid growth of bitcoin has attracted the attention of all media. Digital money from the...
WINGS. What Benefits Does the Platform Offer to the Users?
Wings - a decentralized platform for creating, participating and managing DAO. It works on the blockchain technology using smart contracts. Wings team...