It has become more than apparent that there will always be risks associated with initial coin offerings. If the recent Savedroid debacle is any indication, determining the truth amidst a sea of FUD and misinformation will continue to be a challenge. Even so, there are a lot of concerns over this particular project, as its CEO may have run off with $50 million in funding.
The Savedroid Plot Thickens
Anyone who has kept an eye on the news over the past few days will have noticed that the Savedroid ICO has attracted a fair bit of attention. This German company raised $50 million during its initial coin offering, which is pretty spectacular, all things considered. Ever since then, the project has been receiving nothing but negative attention, mainly because the team has been doing some very strange things.
While it remains unclear if the company pulled an exit scam, the recent tweet by company CEO Yassin Hankir raises a lot of questions. He tweeted the words “over and out” along with a picture of him boarding a flight to a different country. This came right after the ICO had concluded, which immediately leads people to believe that the company will not develop its project and that the investors have been scammed.
— Yassin Hankir #savedroidico (@YassinHankir) April 18, 2018
To make matters even more intriguing, the Savedroid ICO website is currently still offline. This has been a problem for quite some time now, which only adds more fuel to the exit scam rumors. Since we do not know if and how the project will continue in the coming months, it is possible we will see some additional surprises. If the current sentiment is any indication, there is no future for this project whatsoever.
It is evident Savedroid has a lot of explaining to do. The cryptic message from the CEO may have been an elaborate joke, although it seems highly unlikely that is the case. Assuming the company pulled a $50 million exit scam, it will be almost impossible for investors to get their money back. After all, tracking down culprits who have defrauded ICO investors has been an ongoing struggle for quite some time now, and it is doubtful things will improve in the future.
If Savedroid is actually a scam, it would only be the latest in a growing list of fraudulent ICO projects. Unfortunately, we have seen dozens of scams in the ICO industry over the past few months, and that list will only continue to grow. Considering that this industry remains largely unregulated and allows anyone to raise money in short order without a working product, it will continue to attract nefarious individuals.
For the time being, we will have to wait and see how things unfold for Savedroid. A lot of things are not adding up as of right now, and it seems unlikely we will get any official explanation as to what is going on exactly. There is a very good chance that this was a major exit scam, but it’s not the last we will witness in the ICO industry either. Conducting due diligence remains a top priority for ICO investors, yet few people ever complete this step.