Confido, a blockchain company that recently raised almost $350,000, has disappeared just weeks after concluding their Initial Coin Offering (ICO). ICOs are high risk investments because most people invest their money into one without doing proper due diligence and buy it solely based on hype. Confido advertised themselves as a trustless escrow payment solution using smart contracts, and there was high interest in the community because the amount they were looking to raise was well under what companies doing ICOs normally ask for, which is usually in the millions. The ICO price per CFD (the token distributed) was $.0443 USD. In just a week, CFD hit a high of $1.20 USD, and that’s when the news began to come down.
It started with the Confido team issuing a statement in regards to their legal troubles.
This alarmed the community so they started to dig deeper into Confido. It was then discovered that the CEO, Joost Van Doorn, didn’t even exist. Van Doorn claimed to have worked at big companies such as eBay, but none of that information could be verified. It’s no surprise that the rest of the team members did not check out as well. Shortly after, Van Doorn deleted any bit of existence left of him on the internet, locked the subbredit, and took down the Confido website.
“This morning we awoke to the unfortunate news that the team behind Confido has seemingly pulled an exit scam. All internet accounts related to Joost (CEO of Confido) have been deleted. Our lines of communication with the Confido have also been closed. Unfortunately, we do not have much more information regarding the situation, outside of what has already been made public.”
If all the digging done by the community was performed prior to investing into the ICO, we’re sure some of the red flags would have been found. However, like most ICOs, investments now are mostly driven by hype, and companies with no product can raise millions. It also helps that no regulations are currently in place. We urge our readers to perform their due diligence in regards to ICOs and not be blinded by the hype. Research and confirm facts yourself instead of only listening to what you are told. There are some amazing companies doing ICOs, but at the same time, there are companies like Confido who can take your money and run.
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