Overview:
Stox gathered approximately $34m USD in its August 2017 ICO in just 34 hours, the bulk of its hype and FOMO driven by a promotion by Floyd “Money” Mayweather. This raises our first red flag, as you may recall Mayweather almost being incarcerated for his involvement in the Centra Tech ICO scam last year. Stox have syphoned this money from their investors and presented nothing over a year and a half later, leaving investors out of pocket and with an ROI drop by 98%.
The founder of Stox, Moshe Hogeg, faces a $5m USD lawsuit put forth by one of Stox’s biggest investors who alleges quite plainly that the ICO was an exit scam and that Hogeg used the multi-million dollar proceeds to fund other projects such as his also-dubious Sirin Labs. The lawsuit goes on to claim that Hogeg’s Stox venture was nothing more than a Ponzi scheme. Stox have claimed this is FUD, but the case stands that well over a year later the token is worthless and the products remain unrealised.
If you have been impacted financially by this ICO, please join this class action with confidence.
More information will be made available as we continue our investigations.
This class action is accepting class members
Stox’s founders promised to build a next generation market prediction platform, but a year and a half after their ICO, they have very little to show for the tens of millions of dollars they received in investments.
Their platform – primarily the Stox Markets App – remains almost devoid of activity and appears to be very basic and low-level in regard to availability and interactivity:
As this screenshot shows, a mere 84 people have “predicted” on a soon-to-commence fixture. The platform itself allows predictions to be made for a mere four sporting competitions, all of which are football. There is very little traffic for what was proposed as an industry leader, and there’s no deeper functionality to highlight an expenditure of $33m USD. Further, the Stox android App has received little more than 1k downloads, further cementing the lack of users.
The whitepaper (and company website) also boasted the ability to host massively popular “sponsored predictions” for token generation events”, wherein a company holding an ICO could leverage themselves on Stox’s service in order for people to actively predict how well they’d do, or how much they’d raise. The website lists over a dozen companies that have apparently used this service, but there is very little evidence this was actually the case.
Two of the only “success stories” publicized on the site are LeadCoin, and BlitzPredict. However, the founder of Stox – Moshe Hogeg – was a compensated advisor on the LeadCoin project, and BlitzPredict actually supported Stox during their ICO. This paints a negative light on the legitimacy of these success stories.
The whitepaper further went on to boast that Stox would launch with invest.com’s customer network as a first operator (and subsequently claimed this service had a 3m catchment of users) but invest.com is nothing more than a pre-registration landing page. Further, the Invest.com App and Pro App have only 11k downloads between them.
The key point to take away here is that Stox’s platform isn’t used, the website traffic is dropping, and the token used to interact with said platform is essentially worthless. This doesn’t look like a product worthy of a $33m USD injection of funds from investors.
The whitepaper stated that the token would be used “as a primary form for fees, collateral and wagers”, but this is hardly a reality when the platform isn’t being utilised effectively and users aren’t making anywhere near as high a level of predictions as they originally promised. Stox stated that their token could be used for investment, but it’s worth so little that this again isn’t a viable utility.
If Stox needed a payment token, they could have implemented any of the existing tokens, rather than run an ICO and release their own (extremely poor-performing) token:
The Stox team swallowed up $33m USD in funding and have extremely little to show for it. There have been recurring allegations that Moshe Hogeg has used the proceeds of this ICO to fund his other projects, such as Sirin Labs. There was some extremely strange behaviour post-ICO, further alleged to be orchestrated by Hogeg in order to line his own pockets and propel his own projects further:
The funding was broken down in the whitepaper as follows:
We initially see that 50% of funding would be compensated directly to “employees”. This means approximately $15m USD was assigned to the staff of Stox. Their website once had a “team” page, but this has since been removed, leaving us unable to determine exactly who these team members are, and how many people the $15m USD has been shared amongst.
Further to this, there’s a portion of this funding reserved for “misc”, at 5%. This would be around $1.65m USD and is an enormous amount of money to reserve for something so flippantly titled.
If we assume that the 50% reserved for employees was to cover the cost of development, we can still ascertain that this money wasn’t spent correctly, as the platform just hasn’t been realised. There are no clear indications of where this money has gone.
Stox is a failed platform, with a worthless token. The ROI has fallen by more than 98%, the Markets App is unused and abandoned, and the team have implemented nothing of any worth in the year and a half since ICO. Excuses have been made, lawsuits have been opened, and litigation is underway.
Moshe Hogeg has been pursued by the courts for allegations of fraud and remains a key figure in the dubious nature behind Stox’s operations, despite once denying that he was anything to do with Stox, aside from being an investor:
If you have been financially impacted by Stox’s ICO, please join this class action with confidence.
Inception Date:
August 2017
Approx. funds raised:
34m USD
About this ICO:
– Ponzi scheme
– 98% Value loss
– No products
– Founder sued
Our Rating:
Important Information about this Class Action:
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