Initial coin offering is a system, new age technology experts have found which allows people to fund a new cryptocurrency or help boost an emerging currency like the Ethereum.
However, most security experts and even the convicted like Jordan Belfort commented that it is an unregulated medium where people could lose millions of dollars easily.
Their predictions have finally been proved to the best extent because a large number of people have now lost a massive sum of $374,000 to a random startup named Confido. The company was collecting initial coin offering for Ethereum as confirmed by a hacker website. People as always were extremely interested in throwing their hard-earned cash into the dark and deep world of internet where once you register the sum, there is no returning back.
Despite the risks involved in it, for some reason users opined Confido is a reliable blockchain-based app which is safe and allowed depositors to track shipments. In a blockchain, it is usually easy to find if something goes wrong because even if a single packet of data is modified the entire network can be notified of the same and pinpoint where a hacker gained access or some user did something wrong. However, in this case it was the original creator of the blockchain who vanished making things clear that there is no way to retrieve the money lost through the ICO.
People paid Confido for digital tokens by spending real money and at the end of the deal, it was supposed to have led to the digital currency Ethereum. While Bitcoin has reached unprecedented levels as one of the most accepted cryptocurrencies of the world, the next biggest coin in the line is Ethereum which has gained massive traction among people.
Every day, especially on weekends people would keep sending money to the website and they will receive a digital code to reserve their place in the new coin market. The people behind the company suddenly choose to delete their Twitter account this Sunday and within hours, the website was gone without a trace. As with any other internet scam, people usually had no way to find where the team went and even drop a complaint of the sum they lost to this promising new startup.
The company’s representatives did arrive on a sub-Reddit forum to say that they are unable to continue their work due to legal issues and were forced to take down the website. The Reddit forum is now private and not everyone can read it. Only those who were members of it in the past had access to it.
“We are in a tight spot because of a contract we signed and it may be difficult to find a solution to rectify this problem. We cannot assure you 100% that we may go with the solution we have found,” wrote Joost Van Doorn who claims himself to be the founder of this website and has no presence on the internet except for a single LinkedIn profile. Later, the profile was removed as well confirming that no such person exists in the internet and there is no point in searching further.
For such a definitively new startup, Confido token offering was valued at $10 million which is such a massive number for a relatively new company that has no presence on the internet except for some profiles and couple of weeks of being online. When their website was shut down without any announcement, the tokens instantly became worthless but it is still a mystery as to how they were valued at millions. Token Lot the company that helps many companies like Confido setup ICOs says that they are very good scammers.
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