A cryptocurrency scam worth $375,000 uncovered

Shehryar Ahmed Written by Shehryar Ahmed · 1 min read>
Bitcoin miners

The boom of bitcoin might make investing in cryptocurrency sound like an amazing idea. Any sane person would love making a fortune from a small investment within the shortest time possible. The sad fact, however, is that making a fortune isn’t a piece of cake.

A new cryptocurrency startup, Confido, has apparently disappeared after raising a whopping amount of $375,000 through its initial coin offering (ICO).

Confido attracted investors by labeling itself as a “smart” mediator between the buyer and seller. It claimed to introduce “smart contracts” which proceeded once both parties fulfilled certain conditions, thus removing the need of an actual mediator.

The ICO took place through TokenLot, which aids the entire process. After the sum had been raised, the owners of Confido disappeared and no trace of the company itself is to be found.

The website of Confido and its social media outlets have been deleted, making it hard for investors to track down the owners.

The coins were valued roughly $1.20 on 14th of November, while a major plunge was observed after the company allegedly went out of the scene.

The whole fiasco is being termed an “exit scam” by TokenLot. The supposed owner of Confido, Joost van Doorn is a Master’s degree holder and has allegedly worked with multinationals like PepsiCo and eBay. Digital presence of van Doorn is nowhere to be found, too, which gives birth to further suspicions.

Events like these are the reasons ICOs are banned in countries like China and South Korea. They sound tempting, but they aren’t regulated, which leads to such scams being carried out relatively easily.

In other news, users who invested $1000 in Bitcoin in 2010 are worth north of $35 million now. So, are cryptocurrencies actually that bad?

Written by Shehryar Ahmed
He covers international technology and consumer products for TechJuice. Also the Partnerships Lead, directly handles all university and college affiliations. Contact him at Tweets @shehryarahmed0 Profile

NFTs explained

in Cryptocurrency, News