ryptocurrency exchange KuCoin has declared that it will repay investors who used its platform to spend in the Confido initial coin offering (ICO) and are the victims of the Confido ICO Scam.The Confido development team announced that the project has been put on hold after raising $347,000 in an ICO, leading many to identify the ICO a scam.
KuCoin’s announcement is-
“Although, even with our great efforts, KuCoin is not capable yet to have a helpful divulgation with CFD team and recognize their information. To make sure users’ interests and reduce the loss in CFD asset investment, KuCoin provides users an urgent solution … for all the KuCoin users who had made CFD trades … KuCoin is going to trade users’ pay for net value at the rate of 0.0000038 BTC (approximately $0.03)/CFD and directly put down into users’ accounts.”
The exchange plans to have all users’ accounts credited on or before November 30.
Issues In The ICO Industry
The Confido ICO Scam is presently one of the examples of the various issues confronted in the ICO market due to the lack of a set of laws covering the sector. Many ICOs most likely fall under existing security system, but a large number have tried to reject their way out of any accountability.
The need for effective supervision and the incredible popularity of cryptocurrencies and ICOs will likely direct to even more fake activities in the field. However, regulators are observing, with the European Securities & Markets Authority (ESMA) powerfully indicating their concern that ICOs may be avoiding the law. Furthermore, the US Securities and Exchange Commission (SEC) announced the formation of a new “Cyber Unit” in September. This group would have broad powers, as well as supervision over ICO-related activities.
Rumors And Letters
Rumors have been going around that Confido themselves may issue a full reimbursement to investors following the distribution of a doubtful letter claims to be issued by the company’s law firm. It remains to be seen if this will come to pass, but without authentication of the letter’s legitimacy, investors aren’t exactly holding their breath.