Although the company behind this ICO is long-standing, they’ve never had any involvement in any technical industry and certainly not in blockchain or crypto. This project is built as a fundraiser for a platform that has a weak premise and foundation, and there are many aspects that stand out as dubious for this ICO.
We are very concerned when examining ICOs which have no supervision of funds, and no exit scam proofing.
Reflexion’s project is a risky investment. It has not been audited and no Fund Supervision Scheme has been set up.
An expert review of Reflexion Lounge's upcoming ICO
The company has existed for several years as a standalone shisha restaurant in Manchester, England. They haven’t ever ventured into the blockchain or cryptocurrency industries and have no staff listed that would be capable of overseeing this transition.
The parent company for the restaurant is Meduse, but they have no reference to this venture on their main website.
This ICO also has no key investors or partners and seemingly no assets.
There is no financial staff listed in the team sheet, and the members that are present have mostly retail or restaurant backgrounds.
There is no third party regulating the raising of funds for this ICO and as Reflexion Lounge complete their ICO, any funds raised will be unsupervised and there is no promise yet of transparency. These points establish that any investment in this project will be accompanied by a high-risk level.
There has been no audit and no FSS to ensure this team are using their funds appropriately.
This is a very flawed premise, and almost unecessary: the team envision a platform that will permit customers of restaurants and bars to pay for their purchases with cryptocurrency – their token. The idea behind this is weak and isn’t something that needs to exist – it’s illogical for people to use a new cryptocurrency for small, intermittent purchases such as drinks and snacks.
Their claims on the success of their company are stretched, one of which is that Reflexion is “not just in the United Kingdom but across the globe”. This is false, as the restaurant is in a single location. They’ve boasted that the restaurant has hosted over 150 events, but they’ve been established since 2014, making for poor figures.
Reflexion is entirely relying on investors’ funds to develop their platform and there are no other contributions from other investors or from funding outside the ICO, this raises a clear red flag on the project.
They’ve stated that 30% of the tokens will be offered in pre-sale and in a private sale at discounts, leaving open a potential for a pump and dump scheme. Almost 50% of the tokens are allocated for “reserves” or for the team and advisors. Given that the team is extremely small, this would make for questionable distribution of funds.
This project has a hard cap of almost 19m USD, a huge amount for a simple application.
The team have stated a soft cap of 1m USD but they haven’t confirmed what they will do should this amount not be reached. There is no clause written into this project that details a potential returns of investors’ funds, which stands as a clear red flag.
Only two primary staff members and one advisor are listed, and none of them have the relevent experience you’d expect for a project such as this.
https://www.linkedin.com/in/faiyaz-bux-8976a1184/ CEO – he has retail management experience and is now listed as working at two restaurants. No reference to the blockchain project.
https://www.linkedin.com/in/mohammad-iqbal-684659185/ Operations Manager and Head of Finance – no technical or financial experience, and claims that he “works on all aspects of the restaurant and lounge”.
https://www.linkedin.com/in/MrElmasri/ Advisor – listed on LinkedIn as being part of many companies, but Reflexion isn’t one of them.
Reflexion Lounge has a weak inception and very little foundations for a project as amitious as theirs. Their team is unstructured and has no experience in this sector, leaving them open for immense doubt as to the validity of their endeavours.
ICA is committed to warning investors against ICOs which have no third party safeguarding the allocation of the funds derived from ICOs, no Funds Supervision Scheme deployed, and no exit scam proofing.
Mr. Faiyaz Bux
Mr. Mohammad Iqbal
Mr. Mohamed El-Masri
ICO begins: 28-07-2019
ICO ends: 28-08-2019
Token Name: XRLO
Soft Cap: 1m USD
Hard Cap: 19m USD
– Doubtful team
– No FSS or audit
– No need for token
– Project not viable
The issuers of this ICO have not commented on this review. If you represent Reflexion, please contact us to request auditing and subscription to FSS.