Although being hyped up in the last month, The Confido (CFD) team sent out a message saying that they were having, "legal trouble" before they just seem to have disappeared. The question people are asking is if this is a scam? Well, lets look into the details...
Confido was originally created in order to follow the delivery of a package along with smart contracts. Pretty interesting idea, right? It worked by holding a percentage of the money somebody pays for the contents of the package, and finalizes the full payment only after the package has been delivered. This way, people can be more comfortable buying things that will be shipped to them. One of the reasons this coin was so intriguing to investors was that if they were holders of it, they would receive .7% of the escrow fee that Confido would charge.
One of the most questionable things that Confido did was have a market cap of only $400,000, which is VERY small, especially when it is compared to others like bitcoin or etherium. They explained this on their website saying:
"We think the current ICO space is messed up; companies are raising millions without a fully working product or existing customers. We have talked with financial analysts and we simply don’t need more than $400,000 to develop and market our project. ICO’s are a great opportunity to get funding for a project, but we don’t want to abuse this opportunity."
People loved this idea and immediately hopped on board. The price of CFD was able to jump to $.042 to $1.20 in a number of days! But, now, the price is already down to about $.0335! This happened after the Confido team posted a letter to its users saying:
"To our community,
Thanks for always standing by us. We have achieved some incredible things these last two weeks, and the crypto space is beginning to notice us. However, we owe you an apology. Right now, we are in a tight spot, as we are having legal trouble caused by a contract we signed. We signed the contract with assurance from our legal advisor that there was minimal risk and it would not be an issue. I can’t and won’t go into details, but he was wrong. It is a problem.
We are trying our best to fight our way through this. As it currently stands, development has been delayed until a resolution is found. We are honestly not sure how long we will be delayed by, but we’re trying our best to get this behind us as fast as possible.
It is likely that we will be able to find a solution to rectify the situation. However, we cannot assure you with 100% certainty that we will get through this.
This announcement will shock a lot of people, and that’s understandable. I, Joost van Doorn, want to personally apologise for any financial damages this announcement will cause to people. It was never our intention to hurt investors; we didn’t see this coming.
We will keep you guys updated. Please join our announcement channel at https://t.me/joinchat/AAAAAENHpUJSHK7jzX6GZg
Regards,
The Confido team."
Now, here is the catch. Just after posting this, Confido seems to have removed all of their connections with their users. They took down their website, subreddit, twitter, Facebook, linkedin, and many others. Why would they do this if they are "trying to do their best" to fix the situation. Could it be due to their legal issues forcing them to take down their social media accounts, or was this just a scam from day 1?
If this is a scam, it definitely hurts the whole crypto community as well as many other projects that are not connected to confido at all. This could definitely also be a bummer for everyone because it will slow the adoption of crypto currency as a whole which has the ability to potentially change the world.
Guys, be safe out there. Some people have lost tons of their money saved from this potential "scam" make sure you don't follow in their footsteps. If you were an investor in this or have anything to add, please comment and up vote.
Always remember to invest what you can, so when this happens, and it definitely does, you won't be left in the dirt.
Sources:
https://digitalcoinprice.com/confido
https://medium.com/@cryptoanna/confido-the-latest-cryptocurrency-scam-82aecfc896a1
https://www.reddit.com/r/ethtrader/comments/7e8fso/confido_scam_a_whitepaper_is_not_a_product/
its the wild west out there
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