Initial coin offering such as Newzoneex is offering investors has become one of the headaches of the crypto industry.
This is because the space has practically been invaded by scammers to the extent that it takes more than routine diligence to be sure that the ICO you are investing in is no scam.
If you are considering buying any tokens from an ICO, it is advisable that you do some research and find out what pops up on the company and the people behind it.
This is one of the few ways to ensure that you do not lose your money to scammers.
What is The Project?
The Newzoneex is one of those projects that is difficult to define. The reason is that there have been contrasting and different information about it even on the website that any investor would be hard pressed at getting the gist of what the ICO plans to accomplish.
A look at the Newzoneex website shows that there have been different versions of the website with different content.
Nevertheless, we can get a glimpse of these and form an opinion through them.
One of the versions introduced the company by stating “New Zone Intertrade FZE, headquartered in UAE, is a USD 2 billion diversified global conglomerate focused on the trading of metals and raw materials. New Zone very soon plans to enter into energy and soft commodities trading.
Through our three primary operating subsidiaries, we provide value-added solutions in distinct – but complementary – areas, while focusing on identifying and capitalizing on selected opportunities within each.”
It went on to explain the project:
“Trading of industrial metals and dry bulk commodities
Focus on raw materials for steel making and power generation
Main products traded are such as nickel, copper, zinc, aluminium, ores & concentrates
Entering in energy and soft commodities trading”
Furthermore, different versions of the website have different mission and vision statements as we can see.
What is the State of the Project Presently?
The Newzoneex project announced on their website that they are planning to raise a minimum of $400 million through their ICO. The hard cap was put at $1 billion. At present, they are registering prospective investors and members of the community at the site.
Interestingly, they are planning to raise this $1 billion between November and December 2018 judging from what is written on the website, a schematic diagram that illustrates the road-map.
What Are the Pros And Cons of Newzoneex
The project could hardly be described as having positives, unless one would credit building an ICO site as something positive.
The Newzoneex has an ambitious plan of raising more than $400 million. However, the quality of the team’s presentation leaves a lot to be desired.
For instance, the website is full of inconsistencies that points to the suspicion that it was not built by professionals. This immediately raises doubt about the authenticity of the project and the qualification of the team behind it.
As if that were not enough, the website and whitepaper are full of plagiarism. Whole sections of the website and whitepaper were copied from other projects which is an eloquent testimony that the project is fraudulent.
There is no way a $2 billion company would not be able to produce original content for its ICO project. Even if the web project and whitepaper or even the ICO was outsourced, they ought to have crosschecked the content to ensure that it was worthwhile.
It has become obvious that fraudsters are targeting initial coin offerings as a channel of stealing money from investors. This is more so due to the fact that many investors do not conduct any form of research before ‘donating’ money to fraudulent ICOs.
It is obvious that Newzoneex is just another scam ICO. There is no better explanation why they could not produce original content for whitepaper and web content.
Investors should stay away from this initial coin offering. It certainly is another scam ICO.