One interesting phenomenon about ICOs is that there are many people who believe that they are channels through which early investors can make a lot of money.
The antecedence is there when investors made more than 1000 percent. Undoubtedly, new project teams such as those from Dipchain would love to take advantage of the popularity of crowdsales to enrich themselves. This is the reason why every investor must select an ICO to invest in very carefully to avoid losses.
In this review, we shall examine the Dipchain scam to understand why everyone must avoid it while looking out for other signs that show us that a project is just out to steal funds from investors.
What is Dipchain?
The project claims that it is distributed ledger technology meant for art. This is another way of saying that their intention is to place art work on blockchain. If they mean business, that would have meant utilizing the properties of blockchain technology to preserve and promote arts.
It went further to claim that it planned to train artists and use the technology to preserve the integrity of art works. This means that players in the industry could verify the authenticity of an art work through the blockchain technology.
According to the site, the project was:
“Designed to attract emerging artists, creativity designers and independent art unions and brands. Focus on new ideas and Originally-Created Culture, as well as promote contemporary art, music, and literature. We collect the excellent art resources and core art news to create an artistic life system for every young artist and art experiencer.”
No one is in doubt that the project was designed by people who have understanding of some of the uses of blockchain technology and they may have convinced quite a number of investors to invest in it.
However, at Cryptoinfowatch, our job is to search out projects and sites that falsely claim they help investors make money and we are not left in doubt that the claims made by the Dipchain team is false as you shall see in the latter part of this post.
Dipchain Project Roadmap
According to the roadmap seen on the site, the project was officially launched in January 2019. It stated that its presale would end by September 2019 even though it is not clear if it has already commenced. What is obvious is that the token sale is on as seen on the website.
It plans to launch its artwork trading platform by December and build its decentralized apps dApps by March 2020. Among other milestones presented on the site, the mainnet is expected by the end of 2020.
All these would have made sense if this is a genuine project, but it is not. So we are of the opinion that this project would not follow through with its roadmaps. Obviously, the objective is just to give the investor the impression that they are building something worthwhile and encourage them to buy the token.
The Dipchain project would likely become another exit scam after selling its token. This means that the token would be worthless to anyone who bought them since there is no evidence that the project would get to the stage when the tokens are listed on any exchanges.
One rule with which to adjudge the authenticity of an ICO is the team. ICOs that have even one fake team member are likely scams. The premise is that finding that a team member used faked identity means that there may be many others hiding their true identities, just that they have not yet been discovered.
One of the team members Lian Hai, was designated the chief Architect of the project was seen to be the founder and Chief Executive Officer (CEO) of another company UnPay. His real name actually is Zhang Zhenghua. The Dipchain team merely used his photo and changed his name without his knowledge.
Needless to say, a project that impersonates people by stealing their IDs is apparently run by dishonest people. You wouldn’t expect that dealing with them would end well for you as an investor.
Since the identity theft was pointed out to the Dipchain team, they have quickly changed the photo of Zhenghua with that of another person who they still named Lian Hai. This is a very dishonest team and it is a pity that there are many investors that are not aware that they are dealing with a scam in Dipchain.
ICOs have cost a lot of investors a lot in the past couple of years due to the activities of cyber criminals. It is important that investors choose the project they invest with very carefully. Better still, investors should put their funds in only regulated investment sites such as those that have built reputation over the years.
Personally, this is the site that I recommend to investors. You get to use the platform’s social advantage to grow your assets.
Bear in mind that any funds invested in the Dipchain token would be lost. If you already are a part of the investment, do share your experience in the comment box below.