Not Gone: Savedroid ICO Comes Back, Plans ICO Advisory Service

  • SafeDroid, a company that had reportedly pulled an exit scam, revealed it was all a publicity stunt showing how easy it is to pull such a scam in this sector
  • While the team claims it wants to help regulators and will launch an ICO advisory service, investors didn't enjoy the move

In a YouTube video titled “And it’s NOT gone” published by SaveDroid AG the company's founder, Yassin Hankir has recently revealed that the company hasn’t pulled an exit scam, and unveiled it plans to launch an ICO advisory service to help with regulatory efforts.

According to reports, the German-based company, SaveDroid, has been accused of conducting an exit scam, as its website’s homepage had been altered to a single image of the 'Aaand, it's gone' meme from South Park.

Through Twitter, Hankir gave investors the idea that the company pulled an exit scam, as he shared a picture at the beach holding a beer, while captioning it “Thanks guys! Over and out…” The project reportedly raised over €40 million (about $49 million) from investors.

 

SaveDroid has made waves within the German Fintech sector, as the amount it raised is relatively large, compared to other startups in the country. Local news outlets even speculated SaveDroid was hacked.

Seemingly, the company just attempted to pull a publicity stunt that seems to have left a bad taste in its investors’ mouths. While the move got media attention, it also garnered investor ire.

“And It's NOT Gone!”

SaveDroid’s webpage recently added a Youtube video, in which its CEO Hankir explains that the team pulled a fake exit scam, which was not intended to be a prank. Instead, it was a move meant to convey what he refers to as a 'serious message'.

"If we look at this market, we've seen that there is so much scamming happening... From the beginning to the very end of an ICO. And what we've seen so far has been only the tip of the iceberg."

Yassin Hankir

Hankir then mentions the damage that such wide-scale scamming has on the cryptocurrency ecosystem’s credibility. The false scam was SaveDroid's way of demonstrating how easy it is for a company to shut down, leaving investors in the dark and out by hundreds, even thousands of dollars.

"The message behind this is, if we don't change that and if we don't go for better regulation. We believe that this will bring the whole market down...," he said.

Organizations such as US Securities and Exchange Commission (SEC) are seeking a more collaborative system of regulation and oversight. This is akin to what Hankir goes on to address, claiming SaveDroid wants to help counter the prevalence of scams in the cryptocurrency world.

"SaveDroid wants to contribute in two ways: Firstly, we do want to be an active partner for regulators, for authorities. So basically sharing our insights, sharing our knowledge by discussing with the guys how sustainable regulation would look like (…) The second part of it being we will launch a new service line which is [a] professional ICO advisory..."

Yassin Hankir

While the video’s intentions were seemingly good, the number of dislikes the video has makes it clear investors didn’t enjoy the move.

Weekly Newsletter

Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

Featured Image Credit: Photo via Pixabay.com