In one of the more strange alleged attempts at pushing for the highest level of ICO standards, German ICO Savedroid faked an exit scam which rattled its investor base and shook the ICO markets. Investors were thrown into a frenzy until news came out that the entire ordeal was an elaborate PR stunt. Despite the “good intentions” behind this prank, it did more harm than good not only Savedroid but to ICO markets as a whole.
Staging the Fake Exit Scam
Saverdroid’s CEO Yassin Hankir posted a picture on social media that lead community members to believe that he had left Germany and was enjoying a beer on the beaches in Egypt. Furthermore, all internet and social media presences of Savedroid were shut down but for their Reddit channel. Finally, there was a video posted of an empty office space that was allegedly Savedroid. All of these antics were meant to have the community believe that Savedroid who raised $50 million dollars had skipped town with the funds they raised.
— Yassin Hankir #savedroidico (@YassinHankir) April 18, 2018
It was Just a Prank Guys!
After a day of roiling the markets and their investor base, the company decided that they would key in the public that the exit scam setup was, in fact, an attempt at pushing for higher standards for ICO’s. This strategy of scaring investors, shaking the markets, and attempting to make it look like the ICO world continues to be unaccountable is not only foolish for the company but hurts the ICO markets broadly. Spreading fear, uncertainty, and doubt aka “FUD,” makes people mistrust your company and not take it seriously. In any market that is in its infancy, trust is the most important vehicle to bring the market to maturity.
Savedroid CEO Yassin Hankir reveals it was all just a prank.
How This Stunt Hurts ICOs
ICOs have faced scrutiny and mistrust since the tail end of 2017 and into this New Year due to the amounts of money being raised and the companies that are raising said money. The market does not need companies like Savedroid coming up with some PR stunt to facilitate a maturation process that leads to the highest level standards for ICOs. What the market needs are responsible companies that understand the regulatory environments and frameworks that currently exist and live within them.
What the Crypto World Needs
ICO standards and regulatory frameworks are utterly essential to highlight if our industry is going to continue to mature. The responsible way to get us through the maturation process is to engage with the local, national and supra-national governments and regulatory agencies to ensure that all parties are on the same page and working toward the same goal. Anything but the responsible approach hurts the industry and ICOs in the pipeline.
ICOs are an important vehicle for startups to raise capital in order to execute on their business plan. If the vehicle is destroyed by immature stunts or bad actors, the world will have lost an amazingly freeing tool for entrepreneurs, and we will all have suffered for it. The Praetorian Group will continue to act as a vanguard for the ICO and cryptocurrency industries to ensure the regulators and governments understand that this vehicle needs to be incubated and matured, so all great ideas have a shot at success. Responsible ICOs will win the day for all of those who are yet to come, and you can look toward The Praetorian Group to be the standard bearer for the ICO industry as we move forward.