Even in 2019, initial coin offering (ICO) scams still exist. Two blockchain startups, RepuX and JoyToken have exited with $8 million raised in their respective ICOs. According to a report by The Next Web, RepuX raised $4.7 million while JoyToken raised $3.3 million.
RepuX promised its investors a blockchain-powered data marketplace where small and medium sized businesses could sell anonymized data to developers. The developers would then use the data to train machine learning algorithms while the business owners would earn Repux tokens.
JoyToken, on the other hand, promised a blockchain-based gambling platform that would be powered by its native JOY token. The project had even run ads on some very trusted media websites.
However, it looks like the end of the road for the two projects. According to the report, the two companies dissolved their U.K. offices earlier this week. This was confirmed by U.K’s companies’ registrar.
Some members of the crypto community had already smelt a rat even before the showdown took place. On the Bitcoin Talk forum, some members had pointed to the two companies as having shady practices that tainted their reputation. On one particular forum, a member posted a poll asking other members what they thought of the two firms. 68% of the respondents believed that the project owners were scammers.
The two companies shared a lot in common, further fueling the speculation that the two were well-orchestrated exit scams. One of the things they shared was their marketing agency, AmaZix. The agency started working with the two in December 2017 but ceased the relationship just six months later in May. According to a message on its Telegram channel,