How Prodeum Executed Its Cryptocurrency Scam
Prodeum’s idea was simple: to use blockchain technology to track pesticide-contaminated vegetables and fruits. Surely a fabulous idea that unfortunately was a shady scam.
In fact, Prodeum attracted hundreds and thousands of investors for its ICO (Initial Coin Offering). With 54 million total coin supply, and each coin priced at 10 cents, several crypo enthusiast saw this as an oppurtunity to multiply their investment.
Prodeum took everyone’s money. Then it shut down its website followed by its Twitter handle and the Telegram group. How did they do it? Pretty simple:
1. Start With A Website
Crypocurrency scammers have discovered a simple strategy to attract new investors:
- Create a pretty freakin’ website!
Prodeum.io was that pretty website (not-so-pretty though). It did have a strong message – of tracking fruits and vegetables – with a whitepaper, team, and a roadmap.
In the crypto world, where the marketcap is in millions and even billions based on the whitepaper, it was easy for Prodeum to take convince crypto enthusiast to turn into an early investor.
2. Prepare Your “A” Team
Prodeum added a bunch of significantly unknown names in its team section. Each one of them, if you Google, seem accomplished. Perhaps they are. But they are not part of the Prodeum team.
Involvement of advisors, investors, and product managers is perhaps the best way to make your coin seem legit.
3. Shill it on social media channels
Many on Reddit and 4Chan considered Prodeum as one of the hottest ICO around. Check out this tweet:
It is incredibly convincing when you watch others shill a coin this way, isn’t it?
It’s An Important Lesson!
I saw the Prodeum ICO when it first appeared on Reddit and 4Chan. I saw these Prodeum fans. Checked the website. And in 5 min, I was out.
You can say I did my research. But those who didn’t, and expected Prodeum to the next 10x coin, found a surprise:
a shitcoin startup called Prodeum just exitscammed with millions of investor dollars and left them the following message on their site pic.twitter.com/q5R4QAxvwU
— ambidextrous layup guy (@thelateempire) January 28, 2018
I hope you did not invest in Prodeum ICO, and I hope you take note of such scams for now – and in the near future.