Prodeum ICO Allegedly Turned Out To Be a Scam

According to calculation, scammers could still from 0.5 to 6 million dollars
29 January 2018   1045

The Lithuanian start-up Prodeum, which promised to "bring blockchain to fruits and vegetables," after an ICO disabled the website. Twitter users noticed the message that appears instead of start-up's lending page.

Produm was suggested as a technology that was supposed to open to consumers all information about a fruit or vegetable of interest to them by scanning a special QR code. For start-ups, traders and marketers, the startup offered tracking and demand analysis capabilities.

ICO Prodeum started on January 20 and was due to finish on March 13, 2018. As part of the campaign, it was planned to attract 2000 - 5000 ETH (about $ 2.5-6 million at the current exchange rate). According to ICOWatchlist, before the disappearance, the project sold about 18% of tokens ( around $0.5M ).

At the same time, a number of users claim that Prodeum managed to raise $ 6 million in eight days.

There are doubts about the success of Prodeum: there were fewer than 200 people signing up for the startup's page on Twitter, and the purported wallet of the project is almost empty - it may have been emptied after the site was deleted.

In addition, users noticed that the Prodeum site used fake photos of the team, as well as photos of girls who advertised the project with inscriptions on their bodies.

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Singapore's Watchdog to Warn Crypto Exchanges and ICOs

MAS says it has cautioned the exchanges to seek authorization if trading digital tokens that are regulated under the Securities and Futures Act 
24 May 2018   43

The Monetary Authority of Singapore (MAS), which performs functions of country's central bank, warned eight local crypto exchanges about the inadmissibility of futures contracts trading and digital tokens with the properties of securities without proper authorization from the regulator. This is reported on the Coindesk.

MAS representatives note that if the tokens traded on Singapore exchanges have properties that allow them to be classified as assets subject to the Securities and Futures Act (SFA), the trade in such coins must be immediately terminated before the regulator is given permission to operate as a authorized financial market operator.

If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorised as an approved exchange or recognised market operator by MAS.
 

Monetary Authority of Singapore

In addition, local organizers of initial coin offerings (ICO) have also been warned about the inadmissibility of raising funds in Singapore. According to the regulator, ICO-tokens are equity instruments in the assets of companies, and therefore fall within the scope of SFA.

If any digital token exchange, issuer or intermediary  breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS' rules.
 

Lee Boon Ngiap

Assistant managing director, MAS

According to representatives of MAS, not only issuers of ICO-tokens, but also other platforms that are intermediaries in the exchange of such assets and contribute to their dissemination, can bear responsibility.