On November 20, a message appeared on the now-private subreddit for Confido, a blockchain firm that completed a token offering (also called an ICO) some two weeks prior. In the message, the team behind the coin announced in vague terms that a legal contract it had signed was somehow problematic. As a result, the memo explained, “development has been delayed until a resolution is found.” While it suggested that the firm would likely “be able to find a solution,” it also warned that “we cannot assure with you 100% certainty that we will get through this.”
In addition to the subreddit going private, the company’s website has begun displaying a 404 error message and its Twitter account has been deleted. Founder Joost van Doorn’s LinkedIn profile, several medium posts relating to Confido, and a few Telegram channels associated with the company have also disappeared.
A member of Confido’s support team, who claims to have been left “in the dark,” took to reddit to pledge that he would continue his efforts to keep the community apprised of developments to the story. This individual did not immediately reply to an ETHNews request for comment.
In light of the scandal, Eli Lewitt of the website TokenLot, which hosted Confido’s token offering, described the company’s team as “very good scammers.”
The firm’s LinkedIn page was edited on the morning of November 20, 2017, so that the headquarter location field read “Berlin, Berlin.” Before the change was made, that field contained the address to a quaint home in a suburb of Berlin, according to Google Maps.
Additionally, an archived version of Confido’s website assures that “Funds collected in the ICO will be escrowed by Kraft & Wurgaft, P.C.,” but a google search of the law firm’s name returns only a handful of results, all of which relate to the token offering.
At press time, the value of Confido’s tokens had fallen by over 92% over the past 24 hours to about $0.03 apiece. On November 7, a tweet from the company account announced the conclusion of its token offering, which it said had “sold out within 40 seconds.” Between the presale registration and the two phases of its token offering, the company seemingly reached its fundraising cap of 1,250 ETH, worth more than $460,000 at press time.
The archived copy of Confido’s site linked above, which was captured on November 5, 2017, claims that “Sixty percent of the tokens … will be sold in the ICO, thirty percent … will be held by the company and ten percent … will be allocated to the bounty campaign.” However, according to another archived version of the same site from September 29, 2017, “Fifty percent of the tokens will be sold in the ICO, forty percent will be held by the company and ten percent will be allocated to the bounty campaign.”
According to archives of its site, Confido offers an Ethereum-based executable distributed code contract (EDCC) service whereby purchasers of goods send their payments to one of the company’s EDCCs rather than directly to sellers. The EDCC holds the funds until it confirms via data streams that the items in question have been shipped and delivered, then it releases the money to the vendor, a system which theoretically limits opportunities for malfeasance in commerce.