ICO Industry

LoopX Disappears, Taking With It $4.5 Million Following ICO

Thomas Delahunty | February 12, 2018 | 10:30 pm
loopx
ICO

LoopX Disappears, Taking With It $4.5 Million Following ICO

Thomas Delahunty | February 12, 2018 | 10:30 pm

After raising $4.5 million in a series of initial coin offerings (ICOs), cryptocurrency start-up LoopX has disappeared — along with the cash that investors provided — in what appears to be the most recent exit scam to plague the cryptocurrency community.

Once a company with an active online presence, LoopX has entirely disappeared from the internet. The company’s website is no longer online and its social media accounts, including Facebook, Twitter, YouTube, and Telegram, have been deleted.

The founders of LoopX told early backers that their team had been building an investment platform that would utilize a proprietary trading algorithm. According to a cached version of the company’s website, it planned to offer the “most advanced loop trading software to date.” A quote from the defunct website read as follows: “After testing our algorithm thoroughly over half a year with great profits continuously every month, we can now finally bring all this advantages of our LoopX – Trading Software to the public.”

LoopX made a number of bold claims to investors, including the promise of “guaranteed profits every week” and “great profits continuously every month.” The company also claimed that cryptocurrency markets were “projected to grow up to 10 times the size of now until the next year.”

The company’s white paper — which, unsurprisingly, has also been scrubbed from the internet — offered similar language. “Finally the opportunity is here for the common investor to be part of a revolution and be finally free, financially free… Our top priority is to give you an opportunity to sit back, let us do the work and watch your money grow.”

“Our software handles over 10,000 trades per second and calculates over 100 currencies at a time,” the LoopX website read. “Always looking for those opportunities to make profits bigger then 10 percent, which will payed out to our members on a weekly basis.”

Off the backs of all these promises, the company raised about $4.5 million, including 276 Bitcoin and 2,446 Ethereum. In hindsight, it’s surprising that investors put so much faith into a company that was using a lot of incorrect language and grammar — something not indicative of a “core group of high performance professionals” that LoopX was apparently formed around. 

In an ICO, an investor is given a token in exchange for an investment of cash or another cryptocurrency. The idea is that if a company is successful, the token will gain value over time and the investor will eventually be able to bring-in major returns. For more information about ICOs, check out our article The Biggest Threat to an ICO and How to Avoid It.

In the case of LoopX, it appears the money put forth by investors is gone, along with the company itself in what appears to be a classic exit scam — a con job where a company accepts money for a service that it never intends on providing.

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  • CoverYourBases

    It seems no matter how much people try to warn about staying away from these ICO’s, HYIPs, etc, folks keep getting bit. If you’ve lost any money in this, or the thousands of other scams like this, you’ve paid for a very expensive lesson.

    • Shadowshide

      Nasty people out there. i am worried about another ICO Budbo. transferred funds to them but cant get tokens out to my wallet. asked for assistance got told to get lost.

  • DoubleM

    ICO are funds. Better off investing in crypto than in ICO. Monero is the future

    • 1Shot1Kill

      Monero and ICO’s are crypto, Monero started off as an ICO 4 years ago, therefore by your claim its a fraud? Are you saying buying crypto on the market for say $10 is better than buying it in a scary ICO for under a dollar? If you put 1k into Davorcoin’s ICO at 72 cents a coin and they grow to $170 each, can you tell me how much fraud I made?

  • DoubleM

    ICO are fraud. I will never invest in them.

  • John Konner

    Tired of being lied to by desperate brokers/people? Join the moving train. At Coinex/ ANX we give you the best business offers & guide as you trade. In the picture are dedicated gentlemen and ladies who believe in what we stand for. Invest=earn invest = earn…Join my crypto mining network and earn cool profit. [email protected].

  • Robinhood

    ICOs can yield profit but you need to know who you are investing in.

  • anonymousguy1513

    First of all, let’s look at the obvious language of unsubstantiated false promises and the key words that should immediately be setting off red flags in your head. “[Guaranteed] profits every week” – “Great profits [continuously] every month” – “…Let us do the work and [watch your money grow].” This ICO was a clear case of exit scamming from the start. Anything that explicitly implies all you ever have to do is hand over your money and not do a thing with it to garner profits is an absolute load of crap.

    Why would you invest in this?

  • 1Shot1Kill

    So easy to critique in hindsight. How could the Patriots not seen it coming, scam!! This is no different than stocks. You diversify. You use play money. Its gambling just like millions of people do everyday with scratch offs and lottery tickets. Stock brokers and advisors rob people everyday, why are they in business? Out of the 15 ICO’s I’ve done, this is the second to have failed. I anticipate 33% to fail. If I have 1k in each one and 80% fail, I make considerably more on the 3 that succeed. How many billions were lost through emotional selling on the recent stock market correction because Credit swiss misplayed the VIX? More regulations or punishment, no. Derivative swaps during the housing bubble, all risk no loss and no punishment for banks. My dad played the lottery every week, never won, Scam? So much money and hope for millions but that is ok? Trump had 4 bankruptcies in Atlantic City, investors stuck holding the bag, yet he’s President? IPO’s are ONLY for rich people to get richer. ICO’s at least allow the non rich to play and I’ve done very well. All this whining only makes Governments shut is down to “protect” the ignorant and stop the greatest transfer of wealth for the lower class ever. If people stopped playing lottery and dumped $10 in an ICO, there’d be a much better outcome. Rich and powerful don’t want us to be wealthy so they lobby to keep it that way. Teach Rich Dad Poor Dad in school and educate millions of kids for a better life, but Governments prefer its citizens to be dependent to stay in business. Wake up sheep…to build assets it takes risk, otherwise you’ll always WORK for money all your life!

  • 1Shot1Kill

    Why did LoopX fail? Most likely because they took in money during the height of the Bitcoin market at 17-19k, met their goal for funding the project and paying the developers, marketing etc. Weeks later their funds shrunk 70% because they probably didn’t stick it in Tether to protect the value. Now they try to figure out how to stay operational working for cheap and open the platform with no ability to profit investors. At this point things are dire and attempt to draw more funds to save the project or evilishly take more to run with. But if not for the 70% drop which is pretty drastic, I think they would of run the course. Why? Because these ICO’s are greedy which is good. They can walk away middle or post ICO and profit 1-2 million each or they can open the exchanges, lending and staking and make 10’s of millions each. These guys did interviews, frequently communicated but doesn’t matter. They could have the best worded website but ultimately we don’t know them and have to play at high risk at all times. Invest what you are willing to lose and hope for the best. I lost good money, oh well. I’ll make it up in another one. Going forward, with no more lending being offered, these ICO’s should not need to hide or be anonymous or not block certain countries and hopefully make the business cleaner. But always risk where there is potential profit.

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