FUEL, the Etherparty internal token has had a 78 percent rally terminated following investigations that the founders of the project had no intention of building a platform as they promised in the whitepaper.
The 78 percent rally ended following news of a $22 million fraud investigation being funds generated by the project during it 2018 initial coin offering. By April 1, the token had already lost 4 percent after Canadian police froze the assets of Kevin Hobbs and Lisa Cheng.
This was the fallout from a civil forfeiture suit filed against Etherparty and Vanbex a blockchain service company at the Supreme Court of British Columbia.
According to the director at the Ministry of Attorney General in the country,
“FUEL tokens became virtually worthless in dollar value while not being capable of use in the non-existent smart contracts system or for any product or service other than a cryptocurrency coin creating service called Rocket.”
He maintained that Hobbs and Cheng has conducted the ICO with no intention of building the platform for which the funds were raised but with the intention of misappropriating them for personal uses.
The investigation into the fraudulent ICO commenced last year after the police and tax authorities moved in against the founders after the project raised an estimated CAD30 million ($22 million) through the sale of the FUEL token.
The team had marketed the platform on the Ethereum platform and the coin was listed at Coinmarketcap. Presently, data available on the site about the coin reflects the downtrend:
“Etherparty (FUEL) is a cryptocurrency token and operates on the Ethereum platform. Etherparty has a current supply of 1,000,000,000 FUEL with 601,942,102 FUEL in circulation. The last known price of Etherparty is 0.012956USDand is down 2.99% over the last 24 hours. It is currently trading on 9 active market(s) with 9,459,875USD traded over the last 24 hours. More information can be found at https://etherparty.com/.”
Reports say up to 80 percent of ICOs were either scams or failed down the line. Investors have been warned to select tokens carefully.