Unocoin is the Big four Indian Bitcoin Exchange. There have been lots of negative news going around this company since last couple of months. Something is not right at this company and this post is about the latest news of their Initial Coin Offering (ICO).

What is Wrong with Unocoin ?

It is difficult to say what is going in Unocoin but somethings are not correct. Refer the articles published by the Crypto News Media - Cointelegraph

• User claims to have lost $1860 - The user alleged that the systems of this exchange are not secured enough to protect the money of the depositors.
• Post the issue of Hacking attack on Unocoin, the exchange was shut down for technical problems The company claimed that it is making servers “more secure” would help ensure the issue would not repeat in future.
• Attack on the Unocoin in August - There was another attack on the Unocoin Server where unauthorised spending was detected.

Funding raised from VCs

It is very surprising that inspite of these technical glitches the company has managed to raise $1.5 million in pre-Series A round of funding led by Blume Ventures.Previously, the company had raised $250,000 in seed funding from the US-based Bitcoin Opportunity Corp. in 2014.
Since the company has gone for rounds of venture funding it was expected that the Investors would ask for the exit at some point of time and there came a email from the authorised email address of the company.

Initial Coin Offering

I got an email from Unocoin saying they were conducting an ICO.

Please note that the below email was sent from the address of [email protected]

I got interested and clicked on the links in the email as the returns promised in this email were quite lucrative 5% of investment money was promised as dividend in addition to the price appreciation. The offer was too good to be true. The links in email took me to the website http://unocoin.fund/
The website looks genuine and the names of promoters along with the photoes are provided on the same. The website is neatly designed and organised.
Footer of the website provides the details of the company information such as name, email address etc.

There comes a shocking email

Before i could actually invest there was another email in my inbox which came from the same email address

[email protected]

This email states that the previous email about Initial Coin Offering was not sent out by our team and is an attempt to steal customer funds.
Does that mean

• The email address [email protected] was compromised ?
• Do the customers consider the second email coming from [email protected] as genuine ?
  and the final thing which comes to my mind after the trail of emails and looking at the website of unocoin.fund is whether this company really trustworthy ? Even in future if they come out with their Initial Coin Offering, do the investors subscribe ?