Blockchain Sister Startups Allegedly Pull $8 Million Exit Scam
Max Boddy's original article for cointelegraph.com reduced by 56%
Blockchain startups RepuX and JoyToken have reportedly pulled a joint initial coin offering exit scam, according to an exposé by Hard Fork of The Next Web on May 16. RepuX and JoyToken reportedly ran their ICO promotions during March and April of 2018, and are now walking away with $4.7 million and $3.3 million, respectively. "The ICO teams have stated that because of the lower than expected results in their token sales they are no longer willing to pay out the originally allocated amount to the bounty participants." In a previous report by Cointelegraph, a study in 2018 by ICO advisory firm Statis Group indicated that over 80 percent of alleged ICOs in 2017 were scams.
It should be noted that as a percentage of money spent on ICOs as a whole, scams accounted for only 11% of funds invested. In more recent news, social media giant Facebook has recently loosened its previously strict policy on blockchain and crypto related ads, which was initially implemented partially in an attempt to protect users from ICO scams. In keeping with its original intent ICO advertisements remain forbidden.
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