South Korean Crypto Exchange Pure Bit Exit Scams After Raising 13,000 ETH

South Korea cryptocurrency exchange Pure Bit has recently pulled an exit scam after raising a total of 13,000 ETH through an initial coin offering (ICO). At press time, the amount raised is worth $2.7 million.

The team behind Pure Bit reportedly remained anonymous as its ICO was based in South Korea, which banned the fundraising practice months ago. This gives projects the perfect excuse to remain anonymous, but makes it riskier for investors.

The team behind the scam seemingly shut down its website before moving the 13,000 ETH from its wallets, and kicked every member off of its Kakao group chat before posting “sorry” and “thanks” to its communication channels.

On Reddit, one user pointed out that things look bad for investors, who will likely have to try and follow the funds on the blockchain to try to get something back.

They have gotten rid of every evidence. Website hosted by fake name / out of Korea host / messenger / contacts were all fake too. Now their only hope is to keep on track with that ether and hope for the best.

The team behind Pure Bit has already deleted its social media accounts as well. It promised investors a Pure Coin, which would serve as the native token of its cryptocurrency exchange, and would pay holders regular dividends.

Those who used the coins while trading were reportedly going to be rewarded as well. To get more investors on board, Pure Bit was running an affiliate campaign that rewarded users extra tokens for bringing in new investors. The minimum investment amount was of 5 ETH.

The project’s ICO was set to end on November 30, but the team seemingly decided not to wait to pull the scam. As CryptoGlobe covered, exit scams have been regular this year, so much so that a report suggested they’ve taken over $100 million from investors.

IOTA Partners with EVRYTHNG to Launch Distributed Ledger Tech-based IoT Applications

EVRYTHNG, an internet-of-things (IoT) platform that “activates every consumer product to make it intelligent, interactive and trackable,” has partnered with IOTA, a non-profit foundation which develops permissionless, distributed ledger technology (DLT)-based platforms.

The partnership between the two entities involves incorporating some of IOTA’s core technologies with EVRYTHNG’s Blockchain Integration Hub. After the integration of both technology platforms, consumer product brands will “have an easy way to rapidly test, scale and deploy IoT applications,” the announcement’s press release noted.

Established “Powerful Integrations” With Major Blockchain Networks

IoT applications deployed on the new platform will “deliver transparency and provenance to customers while sharing real-time data between supply chain partners,” the release stated.

Commenting on the initiative, Dominique Guinard, co-founder and Chief Technical Officer (CTO) at EVRYTHNG, remarked:

We are celebrating the one-year anniversary of our EVRYTHNG Blockchain Integration Hub. Over the past year, not only have we created powerful integrations with some of the most recognized blockchains in the world including, OriginTrail, Tierion, BLOCKv, Bitcoin and Ethereum but, we've launched real-world applications with the technology.

Guinard added: “This is why we are so excited to announce a strategic partnership with IOTA, a totally different kind of distributed ledger technology, specifically targeted at the IoT industry -- opening new opportunities for consumer product brands.”

Blockchain And IoT Projects To Attract Millions Of Dollars In Investments

“Big four” auditing and professional services firm Deloitte has estimated, through a sector-wide research study, that 42% of executives working in the manufacturing and consumer products sector intend to invest around $5 million in blockchain-related systems in the coming year. Deloitte’s report also mentioned that IoT applications will attract substantial investments which will mainly go towards funding the development of consumer protection and supply-chain management processes.

IOTA To Allow “Scalability, Interoperability, And Maturity” Of EVRYTHNG Platform

Although blockchain-enabled systems could potentially streamline many routine business processes, “industry first-movers must first overcome several challenges,” the release mentioned. For instance, there are “high costs associated with testing blockchain/DLT platforms to determine” which types of implementations will work best.

According to the release, IOTA was chosen as a platform to build on by EVRYTHNG’s developers because it potentially “brings a whole new dimension to the EVRYTHNG Blockchain Integration Hub.” The IOTA integration will “allow consumer product brands to experiment with emerging DLT capabilities while relying on the scalability, interoperability and maturity” of the EVRYTHNG platform.

Moreover, users will be able to “securely transfer data or payments without transaction fees in a trusted, permissionless, and decentralized environment.”

“Moving Beyond The Blockchain”

Holger Köther, the Director of Partnerships at the IOTA Foundation, stated:

IOTA’s distributed ledger technology moves beyond blockchain by enabling secure, feeless, data transfer and payments to advance IoT. Due to the nature of the supply chain and its lack of transparency and trust, IOTA’s Tangle technology is uniquely positioned to address these challenges. This partnership with EVRYTHNG clearly demonstrates how both consumer brands and their customers can benefit from greater transparency in the sourcing and manufacturing of consumer products.