While financial oversight authorities overseas identify and prosecute fake Initial Coin Offerings (ICOs), there are many more that go unnoticed. That is, until they’re discovered and brought to the attention of the cryptocurrency community.
Recently a Bitsonline reader brought one such ICO wannabe to our attention. The reader had considered going to its launch in Macau set for next Monday, and wondered if it was a good investment or not.
People often ask me this question, hoping to have discovered the next “10xer”. But sadly, I had to leave our reader disappointed in their hopes of quick riches, and leaving their question of “when moon?” unanswered by pointing out a few glaring signals of a scam.
Something About Blockchain Transactions
The project in question is CSDmain.io. CSD calls itself the “Trusted Blockchain Provider: Speedy, Secure, Connected”.
It then goes on to offer just about every service imaginable: trading, mining pool, currency issuance, arbitrage, exchange, wallet, prediction, forex, mobile app — all given a few sentences below a countdown clock set to go off in seven days (at the time of writing this article).
According to its “Roadamp” [sic], CSD will issue 3.5 million tokens at its launch event at the Grand Sheraton in Macau on 10th October, 2017. It will also release key products every couple months until January 2019, when it has reached its “Perpetual Planning” stage.
Here, it promises to pay dividend bonuses to token holders and provide “presentation of collaboration with physical currency transaction.” Whatever that means.
The Management Team
The team behind this project are two young gentleman that go by the names of Nathaniel King and Dennis Fletcher. Dressed like a millennial pop star, CEO King is described thus:
Mr. King’s rise to prominence started in year 2013, where he serves as a top management of a forex broker investment firm. His rich experienced in Forex trading had extended to cryptocurrency, where he put lots of effort in Bitcoin. Year 2017, has been exciting with Mr King pointing to Asia huge potential as the next emerging market. Where his emergence of the brand new ICO company to soon target the Asia. [sic]
It doesn’t mention the company, the ICO, or how to independently verify the claim, or what happened with his ICO investors’ money after selling the company.
COO Fletcher, photographed while still straightening his tie, “graduated from University of Monash, a reputable university in Australia. His wealth of operation experience led him to serve as the technical manager to oversee the backend of a cryptocurrencygroup.” [sic]
His humble personality and will to teach, garner a great number of followers through his cryptocurrencyinvestment teachings in Australia. His humble personality and wil l to teach, garner a great number of followers through his cryptocurrency investment teachings in Australia. He earned his first gold in life from the Bitcoin crisis i n year 2014. Due of his unique foresight that believe d in Bitcoin’s astonishing rebound, hence his bravery and wisdom brought him multiplied net worth in this crisis.
Who Wrote This Site?
With no way provided to contact either team members directly or check their LinkedIn profiles, or Twitter/Bitcoin Talk or other feeds, it’s not possible to independently verify the accuracy of their claims. These claims also look as though they were written by a copywriter with English as a second language, as the website is rife with spelling and grammatical errors.
The introduction videos feature basic descriptions of blockchain technology and product names, and a lot of stock footage:
Let’s Talk to Some of the Corporate ‘Partners’
However, they also publish a list of partners’ names — which makes it possible to verify whether CSD is actually part of something larger… or not. They claim Blockchain Global, DigitalX, Hcash and the International Fintech Foundation as their partners.
Leigh Travers, head of DigitalX, said simply, “I’ve never heard of them.”
Levi, a representative at Hcash said, “We are in no way affiliated with csdmain.io, they have never contacted us, and we have definitely NOT agreed to a partnership with them.”
The International Fintech Foundation representative Ashlee Pang said she “hasn’t meet Nathaniel or Dennis yet”, but that the “company are not going through ICO this year hence they will not release white paper at the moment.” She also did not attend their “SINCO Training Sessions” in Kuala Lumpur last September 16th, but “definitely will attend to their Macau ceremony this time”.
She did not respond to further requests to provide information on how to contact them directly. Blockchain Global may have overlooked the contact message sent via their website and was not available for comment.
I then contacted Colbert Lau of Bloktex Sdn. Bhd. in Kuala Lumpur, and one of the main organizers of Blockchain activities in the city. When I asked if he’d heard about CSD’s sessions there, he replied, “Never heard of them”.
So much for community engagement.
CSD Is Probably a Thumbs-Down
The countdown clock is set to go off next Monday, and the “Roadamp” claims that 350 million tokens will be issued in October, most likely at the Launch Event at the Grand Sheraton Macau Hotel on the 10th.
It is unclear at this time what exactly CSD intends to do with the money it’s intending to raise. Our readers are advised to steer clear, and make sure to dig a little deeper when presented with yet another ICO investment opportunity.
Have you ever invested in an ICO? Please feel free to share the experience with us.
Images via CSD website