ICOCoinLab’s premise is very simple: they will help other companies arrange and run a successful ICO.
However, our probe into their incorporation, whitepaper and organisation has revealed some worrying red flags that indicate foul play. Most compellingly we do not even understand for what reason they should run an ICO themselves other than pocketing the money.
The company have an extremely weak incorporation, massive hard cap, no financial team to supervise funds raised and absolutely no product to show to potential investors. There are holes in the team structure, and a multitude of anomalies littered through the whitepaper.
We are very concerned when examining ICOs which have no supervision of funds, and no exit scam proofing.
ICOCoinLab’s project is a risky investment. It has not been audited and no ICO Fund Supervision Scheme has been set up.
An expert review of ICOCoinLab's upcoming ICO
ICOCoinLab has been established for the sole purpose of running this ICO and generating funds. They have no prior endeavours as a company, and have no working prototype or beta product to determine proof of concept.
The company is missing from the Estonian company register, and there is no registered address or base of operations listed on the website. The only location information available reads “Talin, Estomia” (misspelling of ‘Estonia’).
There are no listed shareholders or investors, and the company shows no sign of having tangible capital or existing assets. Their website shows a list of company names and logos that might suggest a partnership, but these are not linked to anything real, feature grammatical errors and are likely fabricated.
The whitepaper states that the “proceeds from the token sale will be deposited in escrow and kept in ETH”, but they don’t state where, or for how long. The company will remain in possession of the funds as they do not suggest any third party intervention.
In their team list, there are no financial staff present. This suggests that there will be no supervision, regulation or management of the funds raised in the ICO. The company and their project remain unaudited and have no IFSS in place.
This ICO is being run purely as a fundraiser for a platform that – at the moment – doesn’t exist at all.
The development and state of affairs with this project offer some of the largest red flags. Firstly, there is nothing to show any development thus far – no concept, no prototype, and no beta product. The team state clearly in their whitepaper that: “our ICOs have 20% higher ROI in comparison to other ICOs” but neglects to list these ICOs.
The whitepaper itself is frife with grammatical and spelling errors, some glaringly obvious, such as “Turkey Solutions”. In fact, there is a well-founded allegation that the whitepaper is constructed almost entirely from other, existing whitepapers: https://bitcointalk.org/index.php?topic=5139137.0
The website is flawed, and the majority of the links and hyperlinked images don’t lead anywhere. The ‘Team’ page merely lists the same four people twice. Finally, the team has almost no social media following, with double-digit followers on both Twitter and Facebook as an example.
Overall, we do not even understand the reason why ICOCoinsLab should run an ICO, they are a merely consulting company and they should use common currencies as a method of payment
There is almost no financial information in the whitepaper; the team have failed to highlight how the funds raised will be spent or distributed. They’ve stated that the mission of the token itself is to “access and order ICOCoinLab services and technologies with a discount”, “manage your investments in crypto-currencies”, “create Fintech projects” and “hedge your capital”. This is all very vague and lacks innovation.
The hard cap for this project is enormous and there’s no suggestion as to why; the company have set this at 45m USD with a soft cap of 2.5m. There are no definitions offered as to what will be done if they are unable to meet this soft cap, and no explanation as to whether or not the raised funds will be returned.
ICOCoinLab have set a minimum investment of 10 ETH for this project (around 2300 USD at time of writing).
Utility tokens do not represent any rights to the project on the part of the purchaser, and should not be considered as an investment. In general, the chances of appreciation are less than what expected. Investors should be aware of the risks associated with the ‘failure to deliver’ of white papers promises, which can subsequently nullify the utility of the token.
ICOCoinLab neglected to highlight their team in their whitepaper, lending further credence to the allegation that it was plagiarised almost in entirety. The team they have declared isn’t at all large enough to undertake a project of this size, casting yet another red flag.
https://www.linkedin.com/in/ahmet-asar/ – Present at five other companies, and is a Founder at three of them; two in Wisconsin, one in Estonia (ICO). The first company (http://nexttrex.com/) doesn’t link to anything, neither does the second company(http://diginextech.com/). Nexttrex and Diginextech both have the same staff listed on LinkedIn.
https://www.linkedin.com/in/lokman-altay/ – Not listed in the whitepaper, ICO listing websites or on the website, but he’s linked on LinkedIn. He is currently present as Founder at four companies (Nexttrex, Diginextech and ICOCoinLab) and seems to work very closely with Ahmet Asar (CEO).
Global Marketing Manager:
https://www.linkedin.com/in/daniel-spyralatos/ – We’ve covered this person in another review (DAYTA) and have previously remarked on the condition of his profile. He’s present with five other companies and has connections with a long list of poorly performing or no-result ICOs such as VooGlue, Nimbus, Phenomenal Network and Aitheon. He has no connection publically to ICOCoinLab but is on the website.
https://www.linkedin.com/in/lin-wan-31b3b8115/ – No current public connection to the company.
https://www.linkedin.com/in/mykolavdovychenko/ – The only named advisor on the project, and shares no public connection to ICOCoinLab.
The list of red flags associated with this project are overwhelming and there is certainly a lot more ICOCoinLab could do to prove their sincerity and legitimacy in this venture, such as completing KYC, IFSS or an audit. They need to release some form of prototype, proof of concept or working examples of what they’ve achieved thus far in order to warrant any kind of investment.
Owing to this evaluation, we are unable to recommend this as a safe investment.
ICA is committed to warning investors against ICOs which have no third party safeguarding the allocation of the funds derived from ICOs and no ICO Funds Supervision Scheme deployed.
Mr. Ahmet Asar
Mr. Lokman Altay
Mr. Mykola Vdovychenko
– Unaudited ICO
– No IFSS
– Misleading website
– No registration
– Improbable team
ICO Start: 01-07-2019
ICO End: 31-07-2019
Soft Cap: 2.5m USD
Hard Cap: 45m USD
The issuers of this ICO have not commented on this review. If you represent ICOCoinLab, please contact us to request auditing and subscription to IFSS.