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Bittrex crypto exchange said that they will launch an initial exchange offering (IEO) on behalf of RAID signifying an upturn in the rather dwindling cryptocurrency market while fostering global adoption. But are XRD tokens coming from a real company?
Update: Bittrex, top 50 crypto exchange by trade volume, was set to launch an initial exchange offering (IEO) on behalf of RAID signifying an upturn in the rather dwindling cryptocurrency market. After we conducted an in-depth investigation, facts proved that RAID (XRD) has more common with a scam than an innovative promising new project. This being said, Bittrex announced the cancellation of RAID (XRD) IEO:
Trust and integrity are the most valuable assets of Bittrex International. As a result of significant, last-minute changes with RAID, we have cancelled the IEO offering of the RAID token. We apologize for the inconvenience. We will provide a more complete statement shortly.
— Bittrex International (@BittrexIntl) March 14, 2019
Bittrex International later published a full statement regarding the cancellation of RAID token sale:
“Bittrex International has cancelled the initial exchange offering (IEO) of the RAID token. We apologize for the inconvenience, but also wanted to provide a more fulsome explanation to our users.
Trust and integrity are our most valuable assets. Part of earning your trust is to be as transparent as possible, so we want to let you know what happened. We decided to cancel the IEO as a result of significant changes in the business status of RAID. Specifically, a few hours ago, OP.GG terminated its strategic partnership with RAID, which was a vital part of the RAID project. When Bittrex International became aware of this significant event, we did not feel that it was in the best interest of our customers to move forward with the IEO.
Bittrex was started with a simple vision: to help advance the blockchain industry by fostering innovation, incubating new and emerging technology, and driving transformative change. As part of this vision, we want our users to know that Bittrex remains vigilant to ensure the integrity of our markets.
One of the hardest challenges we face in advancing blockchain adoption is to avoid the rampant fear, uncertainty, and doubt that is everywhere in this industry. When we become aware of significant events, we respond quickly to protect our users.”
Now, the only thing we should do is to rejoice the saving of $6M investors’ funds and advise Bittrex to select projects more thoroughly.
Find out how we investigated the matter below.
We already wrote of how the Bittrex will launch its first IEO (carries a similar approach that Binance’s launchpad is offering ) on behalf of RAID, a blockchain project. As announced on March 11, 2019, Bittrex said that they will host RAID (XRD) token Sale on its platform in a new concept known as Initial Exchange Offering.
According to the announcement, Bittrex will launch IEO of RAID project. The new project is a blockchain-powered gaming data start-up originating from South Korea.
However, following the story, we found some “irregularities” that may, or may not be of big importance but we still feel the urge to write the facts that are legit.
Did Bittrex Listed Non Existent Tokens From Singapore?
In the legal announcement by Bittrex, it is noted that XRD tokens will be issued by ONERAID PTE. LTD, a Singaporean Company. We tried to find this company on Singapore company regulatory authority ACRA official website. As for them, there is no company with that name registered in Singapore.
There are, however, several companies that have the word “Raid” in their full name (and are also Pte Ltd) but while one being registered for selling alcoholic beverages, the second one for apparel and accessories, the rest of them are pretty much inactive (and registered before 2010).
Needless to say, we tried to google it, but with the exception of the story that we also covered yesterday, no one seems to hear for this company either (not even LinkedIn).
We then went on their website where they are explaining their goal is to give data ownership back to users using blockchain technology and token economy.
“As a result, our goal is to create the decentralized game data ecosystem where data can be freely exchanged amongst users. Also, by leveraging the game data ecosystem, we are planning to promote and develop new businesses such as advanced game marketing, game data analysis and game distribution platform.”
We then tried to find some of their co-founders or employees on the web. Even though their names and photos are regularly listed on their website, it doesn’t seem the guys are too eager to be on LinkedIn and/or Facebook. We couldn’t even find co-founder Cheonwoo Park for whose company OP.GG Forbes says it has amassed 32 million monthly active users across 30 countries. About him we don’t know much.
We know only that he is the founder of the company OP.GG. a website that tracks stats for widely popular multiplayer online games “League of Legends,” “Overwatch” and “Playerunknown’s Battlegrounds.” It also says that he is born in the world’s esports capital South Korea where he built up his first online gaming community at age 12. In high school, he ran a forum for selling MMORPG in-game items.
Now, this is where the things became even more interesting, or should we say, “weird”. On OP.GG website is noted:
“OP.GG has no affiliation with RAID Coin, and there is no economic and technical cooperation with RAID Coin. In addition OP.GG has no intention of developing any blockchain related business utilizing RIOT GAMES data. OP.GG will take all possible legal measures against individualsor organizations disseminating false facts related to this.”
Also, trying to find anybody who could answer our legit questions, we realized that all six employees, including co-founders Cheonwoo Park and Taesung Kim, are from South Korea. We have sent them an e-mail asking do they think it’s legit that non-existent Singapore company already sells tokens and raises funds using Singapore as a brand and yet there is no evidence that a single Singaporean is employed in a non-existent Singapore entity?
We are still waiting for an answer and will publish it as soon as we get one.
Changing the Name of the Token 16 Hours Ahead of Sale?
We also asked why there is no data on the future token’s price and the roadmap? It was also weird for us that only 16 hours ahead of the token sale, they tweeted their decision to change the name of their token from XRD to RAID even though the name of the official website stayed the same – XRD.GG.
And oh the Twitter. They probably have done it in a hurry because the address: https://twitter.com/RAIDOfficial2 doesn’t sound too convincing especially if we find the address https://twitter.com/RAIDOfficial that has 5 followers and is belonging to someone who calls him/herself Shrey Sharma.
The last but not least is a question: Where are the additional 14,5% from, if the Initial Circulating Supply is 34.5%, Bittrex has 17% and Korean stock 3%?
In the meantime, while writing this text on the original site XRD.GG came with an announcement that says:
“The partnership between RAID and OP.GG has been terminated due to the circumstances of the partner company. OP.GG will also announce regarding this matter. We believe this will have a significant impact on investors’ decision-making. Therefore, after discussing with Bittrex, we will be able to inform you on the details before IEO begins.”
So, there you have it and it leaves us to wait to see if we can get an answer to our questions.