Krypital Group to Deny Partnership with KBcoin

KBcoin is running tokensale at the moment, intends to raise $8M
08 November 2018   494

Today, the blockchain focused venture fund Krypital Group, has officially denied information about its connection with the upcoming launch of the South Korean crypto exchange KBcoin. The corresponding announcement appeared in its blog.

Krypital Group says that KBcoin did contact them regarding possible cooperation, but these negotiations did not bring any results. As reasons for not cooperating, the foundation indicates that the project did not provide it with a demo version of its product and information about team members, and the Krypital Group itself “did not manage to confirm the authenticity of the KBcoin product”. Also, the Krypital Group cannot confirm whether KBcoin uses a fully-fledged KYC procedure that meets the relevant requirements in its current ICO process.

We are known in the industry for the high quality of our cooperative projects. In light of the above circumstances, we regret that we are unable to reach any cooperation with KBcoin under the Kbit Group. As to the fact that KBcoindisplayed Krypital Grouop, Cybermiles, Arcblock, Merculet, Egretia as its partners on its website and/or in other channels for any commercial purpose without authorization, we reserve the right to enforce any and/or all legal remedied available to us.

Krypital Group

ICO, during which KBcoin intends to raise $ 8 million, ends on November 15. The main competitive advantages of the trading platform include the possibility of receiving dividends from KBcoin tokens stored on users' accounts, targeting the listing of popular coins without collecting high commissions and strong partners support, the list of which with today's announcement of the Krypital Group is seriously depleted. 

ICOs May Allocate $24B Tokens to Themself

As reported, price of tokens, "left to cover the operating costs", reached $80B at the peak
17 January 2019   146

The total cost of the tokens that the organizers of well-known ICO projects have left to cover the operating costs and remuneration of developers at the time of release was $ 24.2 billion. At the peak, their price reached almost $ 80 billion. This is evidenced by the results of a study conducted by BitMEX together with the TokenAnalyst.

At the current illiquid rate, the assets of ICO-projects in their own tokens amount to about $ 5 billion, having depreciated by more than $ 70 billion.

However, the researchers note, this value is rather arbitrary, since the liquidity of tokens at peak levels was low. It is also incorrect to classify changes of this amount as losses because the organizers of the ICO transferred tokens into their wallets in accordance with the crowdsale conditions.

Having studied the archive of token transfers from ICO-team wallets, BitMEX and TokenAnalyst came to the conclusion that the realized profit from the sale of such tokens could be $ 1.5 billion, with the proviso that some of the tokens might not have been sold or left the wallets for other reasons .

The largest amounts of tokens in their wallets were credited by the Veritaseum and Noah project teams, which, as analysts say, looks “almost comical” against the background of real trading volumes.

Token data up to Dec 2018, data based on prices at the time(s) of issuance
Token data up to Dec 2018, data based on prices at the time(s) of issuance

This analysis highlights the lack of standards and transparency in the ICO market, especially when it comes to the allocation of tokens to the founding team’s wallet. Teams were often able to mint, burn, buy, and sell (their own) tokens at will, without analysts being able to easily track what is occurring. We would often see tokens in exchange clusters, and it was hard to tell whether the token project “paid” the exchange to list tokens or the token project just transferred their treasury to the exchange to cash out.

BitMEX Researchers' Report

In November 2018, BitMEX CEO Arthur Hayes said that the tokens of the largest ICO projects would collapse after entering the secondary market.