Bum Crypto Projects - Thoughts?

This is a spontaneous post. I get a lot of requests to evaluate or give an opinion on new coins / projects which come on the markets. I got one this morning; I am not going to bother naming the cryptocoin... just read and tell me in the comments if you would invest in the project.

I duly did some research (about 20 minutes worth) and below is my response.

Image Credit

Okay, checked it out. I would not touch it with a barge pole ...unknown circulating coins, no active social media feeds, apologies for delays etc.

They base their whole concept on the statement "only a cryptocurrency backed by a hard asset can have value"

...we both know that is complete bullshyte.

This on their website was a major red flag ....

"This website is awaiting legal approval from our council and council of our newly developed partners before we can release details of our operations and partnerships.
Thank you in advance for your understanding.
© Copyright 2017-2018 xxxxxxxxxx - All Rights Reserved © 2018 "

Council? Council of our newly developed partners? Legal approval? Makes no sense.

Sorry, may not be a scam but it is surely run by amateurs....this scares me ... Also from their website

"We have decided to reduce the tokens from 10 billion in issuance to 3 billion and rename the token to xxxxxx. We find it is more fitting to the purpose of our tokens and what’s backing each one, i.e., $1 in GOLD. We feel that when the details of how our program works and how it's redeemable for the bullion are completely revealed in the next few weeks, the industry will have a new gold standard that it can rely on"

Image Credit

Each token backed by $1 of GOLD ....that equates to roughly 2,222,222 ounces of GOLD or 61 728 kilograms of gold or 61 TONNES of gold .... whatever.... It is my guess they will not use the same auditing firm that Bitfinance used to do the Tether audit when needing to provide assurance that they do indeed hold the bullion

Talk about needing a HARDWARE WALLET... more like Fort Knox to hold the backing asset!!

Add to that the fact that it is on one small exchange....Livecoin...

Summary, definitely smoke and mirrors ..... maybe a quick buck can be made out of it but I would not recommend it :)

That was the end of my response. Usually I would check the development team, roadmap, Github commits and pulls ... the whole kaboodle before making a recommendation .....

There are so many shysters and scam artists (and I am NOT saying this is one) that one must be very selective as to where one invests ones hard earned money.