Scam or "High Quality Project": 22,000 Telegram Members Get a Show

Scam or "High Quality Project": 22,000 Telegram Members Get a Show

By Crypto Eric | Blockchain Auditor | 1 Mar 2021


Around a week ago, I wrote about an emerging token offering that was about to do an air drop for those in its bounty program. I did not want to explicitly provide my opinion on its veracity, although I pointed out that the organizational name and brand, and the name of its token. happened to be the name/former name/brand of an international organization - one that is well known to business, accounting and legal professionals,

You can read up on that at the original post.

I had, however, suggested that we might all learn from this fledgling project - about how to conduct an ICO, about the people involved in an ICO, and about things that can go wrong.

As qualification for the Airdrop ended on 26 February and the Airdrop was supposed to take place on 28 February, you might guess that the community would be very active. What I saw boggled my mind. Last night was as near to an online riot as I could have ever imagined.

Should you be interested, the Telegram channel is https://t.me/ReedElsevier (and please remember, this is ANYTHING but a recommendation).

  • The channel has almost 22,000 members. A prior ICO I was associated with has one-tenth of that.
  • The moment 28 February hit somewhere in the world, the questions started - why are my tokens? When distribution? Over, and over, and over, in text, in memes, any way you can imagine.
  • The pleas for technical support - I typed something wrong, the third party website doesn't work, I don't have the technical expertise to upload a screenshot.
  • The "It's a scam!" and the "This is a great project with a professional team" groups fired back and forth.
  • It deescalated into name calling and national insults.
  • People found they could invoke a CoinGecko robot and filled up screen after screen with CoinGecko top coin price updates.
  • Shills started pushing their own Airdrops and programs
  • Someone or someones took screennames like those of moderators and put up fake tasks for everyone to do in order to receive their coins, getting everyone even more angry.

As 28 February was coming to a close in the US, it was almost impossible to keep up with the postings.

What are the takeaways?

  • If anyone thought they could manage hundreds and thousands of people, all typing into Telegram at the same time, with a couple of moderators, they had a lot to learn.
  • People are very suspicious of a token that brands itself as being "Complete USA Dedicated Token" with a US phone number and a NY address when the company's communications are written in very poor English
  • When things go wrong (it appears that they needed 800 more people to perform KYC to work with one of the exchanges; Twitter accounts were shut down; other road blocks got in the way of distribution), they could have been communicated as quickly as possible rather than letting hundreds or thousands of people looking for their free magical Internet money to muse.

 

 

 

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Blockchain Auditor
Blockchain Auditor

The Blockchain Auditor blog is focused on accounting and audit issues related to blockchain and crypto-assets. There will be content of interest to those with an interest in topics such as accounting for cryptoassets, audit procedures related to blockchain and distributed ledger technologies, blockchain for improving audit processes, taxation of cryptoassets, and trust.

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