Investors are in a dilemma on what to do next after the crypto start-up Confido disappeared from the web with its entire social media seemingly brought down.
Investors are in a dilemma on what to do next after what seems like the exit of startup crypto player, Confido disappeared from the web with its entire social media seemingly brought down.
The infamous project had reportedly raised slightly over $374,000 in a token-exchange program with its investors. The investors are staring at what looks like a potential exit scam. The startup had established itself as the most preferred Blockchain-based app that facilitated smart contracts by acting as an intermediary between sellers and buyers. Investors had trusted Confido, and no one thought about the potential risks that lie ahead. The revelations of a possible exit scam were first published on Hacked website. At some point, their CFD tokes hit an all-time high of $12 per token, but that didn’t last for long. Soon after hitting the$12 marks, the value of their tokens began to drop sharply, and this was followed by an official announcement from the company indicating that it had been affected by numerous legal issues. The Hacked further reported that the claims were confirmed through a post made by Joost Van Doorns who is the CEO and founder of Confido.
In his post, Joost started by appreciating the investors for standing with the company through the tough times. He further reiterated that the company had achieved great things over the recent past and the other players in the Crypto marketing had started noticing their impact. He then apologized for what he termed as “legal troubles resulting from a contract that the firm had signed.” He said that although they had assented to the contract with full assurance from their lawyers that nothing could go wrong, the company failed to anticipate any risks that could be associated with it. He signed off the post by stating that the sensitivity of the matter couldn’t allow him to go into details.
However, things didn’t become any better and everything seemed to crumble when the company finally deleted its Facebook, Reddit, and Twitter accounts. However, some of the company’s cached pages are still accessible including its medium post. Soon after posting the information online, concerned investors on Reddit sort to unravel the truth behind the post by investing Joost Van Doorns only to discover that he had already closed all his online accounts and erased everything about himself and the company.
A scrutiny of the archived version of the firm’s website claimed that Joost had previously worked at Zalando, eBay, and PepsiCo. However, what astonished the investors is that all the official LinkedIn pages of the company’s management team seemed fake since they had numerous years of work-related experience but few or no connections at all. To make matters worse, the company’s representative on Reddit identified as Chris admitted that he was clueless about what was happening. The representative termed the move as unnecessary since he had talked to the CEO few days ago and there was nothing to warrant a cause for alarm.
TokenLot, a company that manages ICOs for different startups and through which Confido’s ICO was done released an official statement regarding the state of Confido and confirmed that indeed it appeared like the firm had indeed exited from the market. In its report, TokenLot indicated that it was no longer communicating with the company and therefore it doesn’t have any further information than what the public knew.
TokenLot also said that it had been in contact with Chinese exchange KuCoin since it also added the tokens to its platforms but as at the moment of addressing the press the value of a token had slammed down to $0.02. KuCoin revealed through a blog post that it had suspended trading of these tokens after learning about the latest developments. Users on Bitcointalk and Reddit have slammed KuCoin accusing it of failing to properly vet Confido while others revealed that they were victims of the scam and had lost a lot of money.