Savedroid ICO and the Fake Exit Scam

In an attempt to raise awareness on the vulnerabilities and risks of investing in ICOs, Savedroid pulled off a fake exit scam and investors were livid.

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A few days ago, numerous news channels reported that crypto statup, Savedroid, which allegedly raised $50 million in an initial coin offering (ICO), pulled off an exit scam.

However, an interesting plot twist happened –it seems the suspected exit scam was nothing but just a badly executed and poorly thought PR stunt.

News of the scam spread after the Savedroid website went down and displayed a very cryptic meme:

As expected, users initially thought the website was hacked.

Then, Savedroid founder and CEO Yassin Hankir thought it would be funny to fool his Twitter followers by convincing investors his company is pulling off an exit scam. “Thanks guys,” he said, “Over and out,” he wrote on a tweet where he uploaded photos of himself enjoying a beer on the beach.

A new ICO scam hardly surprised anyone. After all there is already a long list of scams done in the crypto industry and Savedroid just added its name to it.

It did not take long until the thoughtless little stunt gained a lot of attention. After a number of exit scams in the crypto industry, such as Confido, Loopx, Prodeum, nobody thought it was strange that another ICO run off with its investor’s money.  But, as Savedroid’s “exit scam” went viral, Savedroid no longer thought it was funny to pretend it was exit scamming.

Hankir came clean that all of this was simply a “drastic campaign” played to highlight the fact that it is so easy for ICOs to run away with their investor’s money.

If we look to this market, and this is what we have experienced in the last 4 months, we saw that there is so much scam happening, scam from the beginning to the end of the ICO…exit scams all over the place. We believe, what we have seen so far is just the tip of the iceberg. The question is how can we change that? And I think it should change. We all have a common goal, we want this market —the crypto market, the ICO market— to be sustainable for innovative startups.  That is why we wanted to send this very drastic message by just saying how easy it could have been that we even as a highly regulated German corporation, we could have just run away…. then exit scam with all the funds, leaving all the investors behind.

The Savedroid website is now restored and back to normal as well.

This PR stunt has managed to bring one very important issue to the limelight –ICOs need better regulation and investors need to exercise more caution and do more research before investing in them.

A lot of people agree that playing out a fake exit scam may not be the best nor smartest way to get this message across.

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