DigRate analyzed a highly publicized project GoldMint. Despite the favorable public image of the project due to active PR campaign, number of issues have been revealed that would not allow long-term investors to earn profit.
GoldMint – blockchain based platform which operates gold-backed cryptoassets GOLD
Start of ICO - 20.09.2017
According to the results of the research we have revealed high risks of misseling (discrepancy between the essence of product and expectations of buyers), identified key issues and risks, also we provided the relevant recommendations.
DigRate team recommendations are as follows:
1. To post on ICO page textual information with an emphasis on the fact that cryptoassets sold at ICO, are not gold-related
2. To provide detailed estimate of expenses for development, staff, etc.
3. To form a bilingual contract offer (Russian-English) for the Russian-speaking audience
During the preparation of report the Goldmint project has been in contact with DigRate team, thereby the report contains the GoldMint team’s comments.
English version of report will be available soon.
We have evaluated the GoldMint project and now want to show you our brief review, while finalizing the document:
1. MNTP tokens sold in ICO are not gold-related.
2. No formal Terms of Token Sale in Russian, while English version of contract leaves no rights to investors.
3. Expense budget is almost three times overestimated.
How could it happen?
Full version of DigRate’s report is coming tomorrow!
The GoldMint project (Fraud Rate Score - High, B2 rating score of investment attractiveness - low development potential, highly speculative investments) has extended its ICO for another 20 days.
The project announces it has raised $ 6 million (a little more than 10% of the target amount of $ 49 million). However, out of this amount, we were able to identify only $2.5M as funds from real external investors (about 5% of the of the declared goal). Lack of liquidity may become a huge issue when Investment Funds, which have been buying tokens at price lower than current offering, will begin to take profits.
Despite the professional and powerful PR, the crypto community agreed with our evaluation of the project.