Modern Tech to Steal $ 660M From Investors, Media Reports

Authorities of Vietnam started an investigation into Modern Tech's activity
12 April 2018   1051

The Vietnamese authorities have launched an investigation into the company Modern Tech, which is suspected of fraud and misappropriation of 32 thousand ICO-investors in the amount of 15 trillion dong ($ 660 million). This is reported by Nikkei Asian Review.

The reaction of the authorities was followed after the ICO participants held a mass action in Ho Chi Minh City in front of the headquarters of Modern Tech, demanding compensation for their funds.

Victims of Modern Tech at Ho Chi Minh Street Action
Victims of Modern Tech at Ho Chi Minh Street Action

Modern Tech positioned itself as an authorized Vietnamese representative of the projects Ifan and Pincoin, responsible for conducting two ICO on their behalf. The first project is registered in Singapore, and Pincoin is in Dubai. However, as indicated by the local media, they are followed by seven Vietnamese citizens.

Modern Tech promised investors of these projects an extremely high return on investment - more than 570% per annum, comparing it with "miserable" 16% of income from bank deposits and 17% of investments in real estate. In addition, for attracting new participants, "investors" were offered an additional remuneration of 8%.

Ifan was positioned as the "most advanced social network" for celebrities and artists, which allowed users to communicate with their idols, as well as buy albums, tickets and various goods for tokens.

Pincoin was presented as an "investment opportunity", promising 40% of the monthly profit.

The investor's anxiety increased significantly after the company started paying commissions in tokens, rather than in fiat money. At the same time, there was no way to cash out these tokens or exchange them for another crypto currency.

ICOs to Lose Popularity, Diar Research Say

Diar assumes that in the future unregulated ICOs won't attract significant attention
11 December 2018   51

Although since the beginning of this year, ICO-startups have managed to raise over $ 12.2 billion, the November figure was only $ 65 million, according to data from a new study of the Diar portal.

According to analysts, the once popular method of financing, which allowed startups to attract tens and hundreds of millions of dollars in the absence of any product, exhausted itself against the background of fears about regulators' actions and the general dynamics of the cryptocurrency market, which did not leave retail investors with anything except for an unpleasant aftertaste.

This version is also supported by the data from the TokenData portal, which Diar leads in his research. Even with respect to the October levels, which constituted only a small fraction of what could be collected a few months ago, the November figures were 3 times lower.

Diar assumes that in the future unregulated ICOs as we have known them over the past years will no longer attract significant attention and will give way to regulated platforms of tokenized securities.