LoopX ICO Scam – LoopX Disappears with $4.5 Million Without a Trace
The LoopX ICO scam is just another scam in what is turning out to be an alarming trend. ICOs can be wonderful things in raising capital for a new solution to a vexing problem via blockchain. The problem is, it’s just too easy for scam artists to raise all kinds of money then simply vanish. Prodeum was the last one to pull this off although it remains unclear of exactly how much they got away with.
When it comes to ICO ripoffs the LoopX ICO Scam is small potatoes compared to what Bitconnect pulled off. Even so, a lot of people lost a lot of money as the perpetrators pulled off the perfect exit scam. Website? Gone. Twitter Feed? Gone. Facebook Page… Telegram…. Gone and gone. These guys are gone without a trace and likely won’t be tracked down.
The LoopX ICO Scam starts with a familiar story; They promised a revolutionary investment platform to earn backers’ money with its proprietary trading algorithm, (remember the Bitconnect Bot?) Lots of people bought in looking for next round of easy money with the enticement of “no brainer” high returns.
Read some LoopX ICO Scam blurbs for yourself, taken from a cached version of their website before it totally disappeared…
“After developing over months and testing successfully with great profits, we can release now with great confidence the LoopX [t]rading [a]lgorithm,” the LoopX marketing read. “This [s]oftware will give us all the opportunity to make more money online then we could ever do in real life.”
“Our software handles over 10,000 trades per second and calculates over 100 currencies at a time…Always looking for those opportunities to make profits bigger then 10%, which will payed out to our members on a weekly basis.”
“This was not thinkable in the normal financial sector, but has become reality in the cryptoworld.”
Clearly they used all the right buzzwords and reeled in unsuspecting investors with this amazing new thing they’ve developed. Just as with the vaunted Bitconnect bot, these people were no different than the snake oil salesmen of yesteryear who plied their bottles of bullshit across the American frontier to a naive pubic.
The word on the street was LoopX was planning to launch its lending investment platform (Hmmm, that sounds a lot like Bitconnect too…) this month.
The LoopX ICO Scam was driven by its whitepaper which really reeled in the gullible; “Finally the opportunity is here for the common investor to be part of a revolution and be finally free, financially free,… Our top priority is to give you an opportunity to sit back, let us do the work and watch your money grow.”
This appeal to people’s greed has worked for centuries the world over. Amazingly, some people really do never learn.
For lack of any other guidance, we urge cryptocoin investors to ONLY invest in ICOs based in the United States. ICOs in America are subject to compliance with a string of requirements under US Federal Law. Violators are subject to the full force of the Federal government and scam artists WILL be caught. Alternatively, look to Western Europe where there is also a respectable amount of oversight, regulation and a stronger presence of law enforcement with the resources to track down wrongdoers.
Equally as important, DO YOUR HOMEWORK. Do deep research. And as we pointed out in an earlier article — approach every ICO with a healthy amount of skepticism. Get the word on the street from Reddit, Bitcointalk.org and Facebook groups. Start conversations with other people. Find out all you can about the ICO and ask lots of questions. Once you’ve done your research and feel satisfied with everything you learned then go for it.
Prodeum Penis Postulate – What Lithuanians Can Teach Us About the Penis and the People Who Think With One.
An above average income in Lithuania is just about $10,000 USD. Well above average. So when the people behind Lithuania-based Prodeum disappeared without a trace after raising an anywhere between thousands to millions of dollars (the ICO goal was $6.5 million) with nothing but the word “penis” left behind on their website we must put forth the Prodeum penis postulate.
The Prodeum scam was all done in 10 days flat. They put up a nice website, put out a press release, raked in what we can only assume was a lot of money and then disappeared. If you live in Lithuania (if that’s where the Prodeum people really are from…) you can live like a king for life considering the income levels of Lithuania.
The website, such as it was, has been pulled but we have the Wayback machine to record this historical event for posterity. The Prodeum penis postulate was formulated by me after accumulating sad observations of recent confidence tricks including Bitconnect, Tether and now Prodeum.
The Prodeum penis postulate has three component parts:
1) Government regulation will become inevitable if the bullshit with ICOs and cryptocoins doesn’t stop. If we, the digitcal currency industry as a whole, fail to regulate ourselves world governments will have little choice but to step in and impose regulations of their own.
2) People need to become educated and aware of every investment opportunity to recognize potential risks and rewards and understand that investing in a cryptocoin because it is new and it is cheap is not an automatic fast lane on the road to riches. Lots of research and due diligence must be performed by every investor considering any cryptocoin investment.
3) Every cryptocoin investor will need to be more skeptical before buying any new, unproven coin with the mantra “PROVE IT!” playing over and over again in their head as they read a Prodeum press release or review and and every claim made on any ICO or coin website.
The power of the Prodeum penis postulate shines through with a re-read of the press release mentioned in the previous paragraph. The Prodeum people used all of the right buzzwords (blockchain, Ethereum) while hitting all of the right notes in terms of people eating fresh, healthy produce which plays to people’s fear of getting sick or even dying before a product recall can roll out.
SADLY the press release had warning signs….
“Prodeum has already had discussions with the International Federation for Produce Standards (IFPS),” (PROVE IT)
“Plans are underway to begin trial runs in Lithuania and the U.S. later this year. Then, following further meetings with the IFPS, a beta app is in the works for late 2018 or early 2019.” — UHM — how can you have trial runs BEFORE the beta app is ready?
So who was behind Prodeum? We’ll probably never know. Every identify used was fake or stolen. Every related LinkedIn profile has been deleted and the pictures and names of those supposedly behind Prodeum were hijacked in what could only be called some form of identity theft.
We’ve said it before and we’ll say it again — apply critical thinking sills, analyze every aspect of any offer or investment and make a fully informaed decision with as much documentation and proof you can validate. And if you CAN’T then you should probably avoid any such investment.