A pseudo-anonymous now deleted account going by the nickname of AsleepInstruction8 claims an unnamed ICO founder spent the funds on a side-business, on parties, and failed to diversify.
The statement is now deleted, but archived, so we’ll quote at some length with none of these statements verified and with no evidence provided. AsleepInstruction8 says:
“Since there is no insider trading regulation, my coworkers frequently purchased tokens when they’re about to release good news and dumped before they released bad news.
My ICO company didn’t sell their ICO funds and lost 90% of their $20m+ raised and had to lay off most of the team. They still haven’t announced to their investors that most of the team was laid off.
My ICO company founder used the funds to do all kinds of stupid s**t including wasting money on unnecessary parties, paying for a spouse’s expenses.
My ICO company founder never built software in her life – just had a nice resume from non-software companies before. And then what do you know? She didn’t magically know how to manage a software company after she got the ICO money.
My ICO company listed 20 advisors during the ICO, they didn’t advise s**t and didn’t help us at all at developing the product. They were just paid to have their names on the whitepaper.
No one in the company believed in the vision from the whitepaper. They just oversold in the whitepaper to raise money.
My ICO company spent a ton of resources on secret products that only benefited the founder of the company – not the token holders/investors. For example, the founder made the engineers build some random eCommerce product that had nothing to do with the vision of the white paper and would never utilize the token. If that eCommerce product succeeds, she gets to keep all the profit.
The saddest part of this whole thing is that there are still early investors unaware of everything that happened behind the scenes and are still defending the company on Telegram – saying that the company will deliver. I wish I could reach out to them and tell them to exit and gtfo before the price reaches zero…
Note: I’m referring to the founder of the company as a “her” and in singular form to protect my anonymity. The company could have had a male or female, one or many founders.”
Some 95% of start-ups usually fail and that’s the case with most ICOs. In addition, the drop in eth’s price by 90% has not helped, but here there appears to be embezzlement of investors funds as well as insider trading and much else.