This crypto startup vanished and replaced its website content with word ‘penis’

Avatar Written by Sajeel Syed ·  1 min read >

Prodeum is the latest cryptocurrency company to pull an exit scam.

The companies dealing with cryptocurrencies and ICOs are rarely seen in such scams, but what’s done is done. The startup, called Prodeum, had promoted itself as developing a system to use Ethereum blockchain technology for agricultural commodities, like fruits and vegetables. As of now, the company has surprisingly vanished, giving deceit to its ICO investors, leaving one word written on its website “penis.”

The unregulated world of cryptocurrencies is full of risks. No information about how much funds the company has raised yet the TNW reports an estimated 18% of its funding goal might have been achieved. The project goal of the company was set to raise 5,400 ether, or $6.5 million.

It looks like Prodeum had been paying Fiverr users to write their brand on their bodies and post the images on social media.

The initial coin offering (ICO) is an unregulated fundraising technique used by blockchain companies where cryptocurrencies like Bitcoin and Ethereum are used to purchase “tokens” from a startup. The company allegedly stole the identities of some blockchain experts and presented their profiles on its website. The blockchain experts linked to this crypto startup claims that they became victims of identity theft and have not heard or anything to do with the company.

Mario F. Pazos, a Miami-based blockchain startup advisor, and angel investor said that he had not even heard about the company and further explained,

“We run a very thorough due diligence process and interview with the CEO and their team. In fact, we have face to face interactions. I make sure that they’re legitimate companies.”

Last year, another cryptocurrency company, called Confido, wiped its digital fingerprints and stole its customers’ investments, and vanished. The company had raised $375,000 through its ICO.

Written by Sajeel Syed
I am a writer at TechJuice, overseeing IT, Telecom, Cryptocurrency, and other tech-related features here. When I'm not working, I spend some of my time with good old Xbox 360 and the rest in social activism. Follow me on Twitter: Profile