Home Cryptocurrency News Bitcoin Confido ICO Turned Into a Scam as Developers Cash out

Confido ICO Turned Into a Scam as Developers Cash out

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Cryptocurrency ICOs pose a very real threat to the overall ecosystem. It only takes one or two nefarious projects to give this industry an even worse name. Confido, a recent ICO, has seemingly thrown in the towel for some unknown reason. Considering this project had a market cap of $18m not too long ago, that is a surprising development. It is also possible a lot of lost good money on this scheme, by the look of things.

It is a bit unclear what happened to Confido exactly. The team posted a blog update which was removed shortly afterward. For all intents and purposes, the project appears to be dead in the water right now. Anyone holding tokens associated with this ICO needs to sell them as soon as possible. The price has absolutely plummeted over the past 24 hours. Its market cap also shrunk from $18m to under $300,000 in 24 hours.

Confido was an Outright Scam From the Start

Without the official explanation, it is evident something went awry. There have been concerns over Confido from day one, though. The team is a bunch of nobodies who threw in the towel after a few weeks. Although they raised $400,000 without issues, the project was never fully developed in the end. Even the whitepaper seemed unprofessional, yet people still gave them money regardless. It is these types of scams which warrant further ICO regulation on a global scale. Malicious individuals need to be punished somehow.

Surprisingly, it seems a lot of people had inside information regarding this development. There was a big sell-off before the team announced they were giving up. By that time, the Confido price had already collapsed in a big way. Developers had some locked up tokens – around 20% of the total supply – which were dumped across the exchanges in quick succession. It is evident this was a deliberate attempt to scam users from day one, and the developers were ultimately successful in doing on exactly that.

For now, it remains unclear how much money is lost by investors. Confido didn’t attract thousands of people, but it’s still a pretty worrisome development. While they may have had a good idea, they ultimately ran off with the money. Not a big surprise in hindsight, as the project seemed dubious from the start. It is up to investors to do their own research before contributing money. Those who didn’t are now paying the price for their ignorance. We will see more of these scams blow up in the future, though.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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