Against the backdrop of the crypto-currency boom, new startups are constantly appearing which find unthinkable applications for blockchain and crypto-currencies.
It is becoming increasingly popular to attract investments through an ICO (intial coin offering). If you invest in a successful project you can get hundreds and even thousands of percent of profit. But it is possible to get burned by giving money to scammers.
It seems that Confido is one of those scams.
The startup collected $374,000 at the ICO disappeared along with the collected funds. This left investors and some of the project team at a loss.
The service, which used Ethereum smart contracts, was supposed to provide secure payments and delivery tracking but it was a scam from the beginning. The developers’ profiles in LinkedIn turned out to be fake: the project participants boasted of their experience working in large IT companies but the profiles had only a few contacts. One user discovered the fraud and sold their tokens and two days later the Confido project was closed.
At first the Confido site ceased to work and then the project accounts disappeared in social networks. Then there was a message from one of the employees that the company is experiencing legal difficulties and that they would soon settle it and return to normal work. Then this message became inaccessible.
One of the representatives of the project said that he also did not understand what was happening with Confido and for him such a development of events became a “total surprise”.
After the news of the fraud, Confido’s capitalization fell from $18 million to $300,000 in one day. Investors of the project, who had hoped to make a profit, lost their money.
The story of Confido once again shows that you should only invest in the most transparent projects that have real technology behind them.