Trustless Payment Startup Confido Makes Off with $375k of ICO Funds
Confido, an ICO startup whose title means “I hope”, has done a bunk with 1,235 ETH. The business was supposed to have already been producing a trustless payment method utilizing intelligent contracts. On the contrary, it had been the job’s founders who’ve shown themselves trustless after deleting each of their accounts and moving dim. The $375,000 exit scam highlights the dangers which are inherent to the still largely unregulated ICO marketplace.
Trust Less, Question More
As a since-deleted Medium article Printed by Confido Clarified:
Confido takes away the trust barrier in exchanges involving cryptocurrencies, while also staying decentralised and trustless.
After agreeing of “legal problems” over the weekend, but the startup hastily scrubbed its internet presence. Google still has a cached version of the Website plus a who.is inquiry brings up the following advice, mentioning a residential Berlin speech:
Joost van Doorn is, in addition, the project’s creator and CEO allegedly. It’s improbable that the organization information is right, even though the title may be, provided that van Doorn has since deactivated his private Facebook account combined with Confido’s. The confido.io domain name was registered together with Namecheap, who take payment in bitcoin.
, to which they answer: “We believe that the present ICO distance is sprucing up; firms are increasing millions without a fully functioning product or present clients. We’ve spoken with financial analysts and we just don’t desire over $400,000 to grow and advertise our undertaking.”
Irony Upon Ironies and Insult to Injury
The Confido contract speech now has a balance of 0 ether and only 676 CFD tokens, worth a total of 21. As word broke of this depart scam on November 19, the token’s value dropped by 94 percent. It is now trading on Kucoin, Etherdelta, and Mercatox, though suffice to say that there are not many buyers.
Google webcache also shows a snapshot of this group’s currently deleted Twitter, in which the ironies are still pile up:
The 4.5 million CFD the group refer to now sit within this speech. About 4chan’s /biz/ messageboard where traders collect to troll, shill, and sometimes dispense sound investment information, there was a wealth of pink works since the grief dropped in, and it was a similar story on Reddit.
What Hope of a Happy Ending?
There is a slim likelihood of a happy end to this sorry story. Tokenlot, that had encouraged the Confido sale on their site, allegedly issued the following advice following the departure scam came to light:
Days before, a few of the /biz/ forum more astute users had posted warnings that the group behind Confido did not appear to exist, but had been shot down with a single skeptic jibing “You offered the future of internet crypto trade in 5 M market cap OP. You sold too early and you’ll have to live with this”.
At a ribbon on November 19, a person posted:
wait a second, is this real? I woke up not too long ago and I am down over $54K on my investment in CFD…I bought in with almost everything I had when it was .94 cents. What is happening? I am seeing rumors that the developers did an exit scam. Is this true? Does anyone know why their website is down? I’m not getting any responses from email or anything. I feel really f*****g sick. Can someone tell me please what is happening?
The Confido scam occurs the identical day a poll revealed that 15 percent of institutional traders will not go near ICOs until tighter regulation occurs. While the great majority of initial coin offerings are conducted in good faith, whatever it requires is a few bad apples to ruin things for everybody.
Since Confido were posting information of “legal issues” that have been broadly interpreted as the initial stage of the planned departure, one Twitter user emphasized the fact that Coinmarketcap is conducting a trio of advertisements for jobs that are suspicious at best and deceptive at worst. Bitcy, Resonance, and Bitconnect all guarantee “guaranteed returns”, which ought to be an instantaneous warning signal. Since the Confido case reveals, however, it does not need unrealistic promises to hook shareholders: all it requires is a plausible-sounding ICO using a small hard cap.