With the value of bitcoin touching $15,000 USD in the past week, it comes as no surprise that there are literally dozens of ICO’s coming up every single day. While some of these projects are definitely worth checking out, some of them are quite obviously quick cash grabs.
Any project that claims to ‘quadruple’ your money overnight, should be viewed with a certain amount of suspicion. The same goes for investment deals that claim to mine cryptocurrencies for us, and then deliver us with monthly/ weekly profits. For starters, a thorough background check should be done by investors to see whether the founders of the project are legit or not.
Following this, there are many other small steps that can be taken to verify the validity of an ICO.
EigenCoin is an all new ‘self governing’ trading system that claims to help deliver users with ‘large profits’ on an almost day to day basis. It makes use of the SHA256 PoW algorithm, and is thus able to make trades/investments “automatically” on our behalf. This is a bit suspicious, because most of the time users still have the right to veto trades if they feel like a deal is not worth it.
Some of the other issues with EigenCoin include:
(i) Poor Investment Control:
The company claims that the Eigen is a fully ‘self-regulated financial system’ that stakes and invests money on our behalf. As a result of this, the platform automatically executes trades that might not be in alignment with our best interests.
(ii) Low Accountability:
If for example a trade is made that we do not like, very little can be done about it. Since Eigen is automated, the company claims no responsibility in cases where users run in to large losses as a result of a poor investment choice.
(iii) High Degree of Risk:
When signing up for this service, the website makes it amply clear that “staking will amount to 22% annually”. In addition to this, automatic trades are started within an hour of a deposit being made. Since there is no maximum staking amount, the company claims that it can help users earn money on a near daily basis.
What Are Investors Saying About Eigen?
While the ICO gathered much interest initially, in recent weeks there have been many clients who have come forth and claimed that their investments have not been honored by the folks over at Eigen.
For example a twitter user by the name Aaron B posted the following “These guys went forward with the ICO despite having so many unresolved issues. I feel cheated, but at least the next round of the ICO will remain at $0.70. Oh, I'm in the same boat as all these other people, BTC still pending after more than 6 confirmations.”
Similarly, a user with the twitter handle Krypto Bee had the following words for the company “My previously-confirmed BTC has now gone completely missing from the Eigencoin wallet. This looks bad, #Eigencoin… very, very bad. Please do the right thing and fix this, or simply exchange our stolen BTC for the appropriate amount of ICO tokens.”
While on the outside this project seems to be legitimate, many investors have come forth and claimed that Eigen Coin is a big scam. Thus, from our end we would suggest that investors hold back on their money, and maybe put their assets into some other project that has been verified by the crypto community at large.