Cryptocurrency

A cryptocurrency scam worth $375,000 uncovered

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?

Sponsored
Shehryar Ahmed

He covers international technology and consumer products for TechJuice. Also the Partnerships Lead, directly handles all university and college affiliations.

Share
Published by
Shehryar Ahmed
Tags: Scam

Recent Posts

Garena Free Fire India Launch Rumors: What Fans Need to Know

Reports suggest that Garena Free Fire is set to make a much-anticipated return to India.…

17 hours ago

Albania Bans TikTok for One Year: Here’s the Reason!

The Albanian government has announced a ban on the social media platform TikTok for a…

21 hours ago

Google Pixel 9 Pro vs. 8 Pro: Biggest Upgrades Compared

The launch of Google’s latest Pixel lineup brings an exciting chance to compare the new…

22 hours ago

Azad Kashmir to Host Pakistan’s First Women-Centric Software Technology Park

ISLAMABAD: In February next year, Pakistan is set to launch its first women-focused software technology…

23 hours ago

HEC Reveals Law Admission Test Date for LLB Students

The Law Admission Test (LAT) has been announced by the Higher Education Commission (HEC) of…

24 hours ago

Meta’s WhatsApp to Release New Playback Speed Feature for Videos

Meta's WhatsApp is rolling out a new playback speed feature, allowing users to adjust video…

2 days ago