Initial Coin offerings are ways by which startups and even existing companies in the cryptocurrencies ecosystem raise money for their projects. ICO’s are the crypto equivalents of initial public offerings that businesses conduct to sell their shares to raise funds for business expansion.
While there are strict rules and regulations present in the IPO ecosystem, the same is not obtainable in the ICO world. In recent times, there have been quite a good number of scam ICO’s and pump and dump ICO schemes, which has taken investors hard earned money and either disappeared into thin air or have failed to appreciate in price, therefore, giving its investors nothing to gain at all.
The Confido ICO Scam
Earlier in November 2017, a cryptocurrency startup named Confido conducted an ICO and raised nearly $375,000. Confido claimed to be a company that is developing smart contracts that would act as an escrow between buyers and sellers during financial transactions.
If the Confido project had worked out, the smart contract would have eliminated the need for third-party escrow services during business transactions.
The investors in the ICO were given a “contract for differences ” tokens that were worth as much as $1.20 per token on November 14, 2017.
In the end, the Confido project turned out to be a scam ICO as the owners have since shut down all their online assets and communication channels. The Confido team later left a statement on their Medium account stating they were facing legal trouble and therefore the project would be suspended indefinitely.
KuCoin Cryptocurrency Exchange Set To Reimburse Its Users
KuCoin – a Hong Kong-based cryptocurrency exchange that was launched in September 2017, has announced plans to reimburse all those who invested in the Confido ICO scam through its exchange. In a statement written by the KuCoin team, KuCoin has noted that it has failed in all its effort to reach the CFD team. Find below, KuCoin as written on Cointelegraph:
So far, after making our best attempts, KuCoin team is still not able to have an active communication with CFD team and comprehend their updates.
To ensure users’ interest and minimize the loss in CFD asset investment, KuCoin provides users an emergency solution…for all KuCoin users who had made CFD trades…KuCoin is going to trade users’ purchase net value at the rate of 0.0000038 BTC (approximately $0.03) / CFD and directly deposit into users accounts.
KuCoin has said it would ensure all users are credited latest by November 30, 2017.
Top ICO Market Performers for Today
The following are the top three ICO performers in the last 24hours.
The IOTA ICO has seen a gain of 38% in the last twenty-four hours. IOTA also topped our yesterday’s gainers list. This recent bullish rally could be as a result of growing interest in its Tangle Protocol and also due to Satoshi Pay’s successful partnership with IOTA.
According to Coinmarketcap, IOTA now has a market capitalization of $4.09 billion with a volume of $434.52 million
The Status ICO comes at the number two position with an ROI of 37% in the 24hour timeframe.
According to Coinmarketcap, Status now has a market cap of $183,107 million
The Blockchain capital ICO is at number three, with a total ROI of 24% in the twenty-four-hour timeframe and a total of 57% ROI since last month.
Image courtesy of Confido