Overview of the allegations:
Reports suggest Atonomi has had a short and turbulent history since the inception of their ICO in May 2018. It is alleged that the company, which promised an “ingenious security protocol and infrastructure to enable trusted interoperability on ‘billions’ of devices”, was actually a multifaceted and multi-tiered scam. Numerous reports have led to great controversy surrounding Atonomi, including reports indicating the following: investors committing mass dumps on Day One, a CEO being dismissed and dubiously replaced, misuse of ICO funding, and a coin that is all but worthless less than twelve months later.
The following allegations have arisen: the company cannot account for the funds raised, the company is deceptive and misleading, the coin has no value, and the promised products have never been realised.
This class action is accepting class members
It is alleged that the white paper – stacked high with vague marketing and management spiel – made a lot of bold claims and promises that have been left entirely unrealised. Amongst those was the claim to be building an entire network that would provide secure device-to-device transactions and a completely safe and regulated exchange of data.
It is alleged that the white paper itself was poorly constructed, with very little mention of financials, hypothesised performance targets, or projections and instead contained pages of irrelevant text. Furthermore, it is alleged that the little graphing or imagery available could have been made in two minutes on any entry-level tool.
To date, nothing has been realised, and nothing ever will be. In fact, the events that took place within Atonomi and its parent company – Centri – are well-publicised and include the fact that the new CEO, Robert Strickland, just doesn’t care for Crypto in any sense. When he took over from Vaughan Emery (who was fired from the company) he joined both Atonomi and Centri together as one, dismissed the Atonomi staff and used the proceeds of the ICO (all twenty-five million dollars) to fund Centri staff and rescue the company from a current slump.
As per Atonomi’s white paper, the token would be used as follows:
- Integrated into the network for device registration, activation and reputation management
- Commerce transactions
- Operate smart-contracts
They confirmed that the token would be imperative and stated more than once that the network would rely heavily on the token to function.
No functioning network – no value in the token. This is the reality faced by investors.
Investors may have seen how futile it would be to retain the coin from as early as Day One and actively participated in the pump and dump scheme that was present. As shown by the graphs below, enormous blockchain transactions were made, showing dumps of four million tokens by key, private investors:
There’s no plan in place to rescue the floundering coin and no solid updates have been provided since mid-2018. The company doesn’t not current employ any staff with experience in cryptocurrency or blockchain technology and their social media channels are filled with generic spam and retweets. There is even a Telegram chat named “Atonomi Scam” with over 300 members present.
To summarise: the token was made to support the network, but the network was never created. Therefore, this token has no utility.
There was no mention in the white paper of Atonomi’s planned distribution of funds, or of their financial roadmap. They never highlighted how the money would be spent. Recently, one of Robert Strickland’s companies hosted an enormous and lavish “conference” in Barcelona complete with yacht parties and huge buffets. It’s alleged that the money raised from the ICO for Atonomi funded this.
Further to this, it’s a well-documented allegation that Strickland used the funds raised in the ICO to a) hire his own family members into Centri, b) pay Centri salaries and c) rescue Centri from a low-performing trough.
Thanks to the expotentially decreasing value of ATMI, investors are extremely unlikely to ever gain back the millions of dollars they invested in this project:
Atonomi stated that the platform “leverages the power of blockchain technology to validate immutable device identity” and would feature “blockchain-based tokenization of identity and reputation services”, but we remain unconvinced this was the case. While this may have been their goal, it’s clear it couldn’t ever be realised. Blockchain technology is required when the decentralised system in question is adding value: using the technology to merely validate a device’s identity is nonsensical.
No, this is just a standard ERC20 token.
The way Atonomi and Centri have treated their investors is despicable. They’ve conned them out of twenty five million dollars and have absolutely nothing to show for the value. The coin has nothing in terms of value and the company have nothing in place to boost the token’s performance. Their products remain lost and undeveloped, painting a clear picture of the level of deceit attained by Atonomi and Centri. They duped US investors to drive hype and gain an image of popularity and prosperity, then allowed the project to fall to pieces.
If you have been financially impacted by this ICO, please join this class action with confidence.
- MR. VAUGHAN EMERY
- MR. ROBERT STRICKLAND
- MR. DAVID FRAGALE
BOARD OF ADVISORS:
- MR. JOHN CLIPPINGER
- MR. ULF LINDQVIST
- MR. DAVID KRAVITZ
- MR. TAKASHI YANAGI
- MR. DAVID JEVANS
- MR. ROB MAY
Approx. funds raised:
About this ICO:
– 98.5% value loss
– Massive dumps
– No product
– Company in tatters
– Deceptive team
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