Another cryptostartap was dissolved in the air, collecting $ 4.8 million on ICO

Cryptostartap LoopX fully sank from online and social networks, collecting about $ 4.8 million from users in the framework of the initial placement of coins (ICO) in January 2018.

Unknown owners of the startup, without explanation, deleted the channels on Facebook , Telegram and YouTube . And on the account on Twitter, there was only one single tweet that refers to an article in TheNextWeb describing fraud. Probably, someone else has posted a tweet who has occupied a vacant account (or is it a kind of trolling by scammers).

Now on the BitcoinTalk forum, fraud victims track the movement of their money from wallet to wallet and discuss the possibility of filing a class action lawsuit.

In fact, the scam could be even more ambitious. The owners of the startup planned to raise $ 6.94 million for the development of a mobile application for trading cryptocurrency. But they managed to attract only $ 4.8 million, despite an active advertising campaign, referral program and claims about the presence of a secret proprietary trading algorithm.

A copy of the official document has been preserved in Google’s cache, describing the wonderful prospects for investing in a LoopX business.

LoopX promised to develop a “revolutionary peer-to-peer trading platform where users can launch their money into the work with one click of the mouse”. The developers stated that they created “the most perfect trading algorithm among the existing ones”, and it proved its effectiveness in the financial market. Key employees of the company allegedly work in this industry for a long time and know their business well.

“After months of development and successful testing for six months with high profits, we can now release this algorithm, being confident in it. The LoopX Trading Algorithm software gives all of us the opportunity to earn such money online that can never be earned in real life, the speculators seduced. “Our program performs 10,000 transactions per second and processes more than 100 currencies simultaneously.”

Investors who invest in the project, promised to pay 10% per week. “The more people investing in our platform, the more profit we can provide,” said the builders of the pyramid. “And the bigger our community, the higher the value of your LoopX coins.”

LPX pre-sales began on January 2, 2018, and the initial placement of the ICO began on January 10 in five rounds of four days. The cost of coins increased with each round. During the pre-sale - $ 0.70, in five rounds - from $ 0.90 to $ 1.30.

So the ICO ended at the end of January. The last letter that investors received from the creators of the project ended with these words: “We still have some surprises for you, which you will learn about next week!” This is definitely not deceived.


Last letter LoopX

BTC and ETH were accepted as payment for LPX. The maximum number of LPX coins is 10 million, of which 8.2 million coins were available for pre-sale and ICO. If all the coins were sold at the stated rate, then scammers would receive approximately $ 6.94 million.

It must be said that some users suspect that something was wrong during the ICO. On the Reddit branch, they urged others to stay away from LoopX and drew attention to several suspicious things:

• no details about the "revolutionary" algorithm;
• no information about specific developers and in general about the personnel who is behind the project;
• a promise of constant profits of 10% per week.

All this very strongly hinted at the possibility of fraud. In fact, investors were offered to believe in unknown people and buy “candy wrappers” based on the promised profit without any guarantees. And many were led to these promises at their own peril and risk. According to the latest statistics before closing the site ( Google cache ), 16,025 users listed 276.21 BTC and 2446.7 ETH scammers. At today's rate (02/14/2018, 21:00 MSK) this is $ 4,815,068.07. At the time ICO itself was a little less, somewhere around $ 4.5 million.

The ICO industry is not regulated by law, so the chances of returning lost money from "investors" are very small. In the case of a class action, they don’t even know who exactly should be sued, and no one has any contracts or other documents in their hands.

LoopX was the next in a series of startups that conducted ICO, and then disappeared from online. A few months ago, Confido disappeared, collecting $ 374 thousand, and before it was the Prodeum. Its owners took the jackpot of $ 11 million, leaving behind a website with a single word: "penis . " Perhaps this word expresses well the feelings that now have been deceived investors.