Widely touted as a reload ICO lending Ponzi after BitConnect collapsed, DavorCoin has now also collapsed.
As per a corporate update published on Medium, DavorCoin’s anonymous owners advised they were “end(ing) our lending program”.
For those unfamiliar with the company, DavorCoin offered lending ICO Ponzi ROIs on investments of $100 or more.
Cited reasons for DavorCoin’s collapse
the current situation of the Davor project, of lending programs, of the cryptocurrency market and of legal issues regarding lending platforms and cryptocurrencies in general.
If I may cut through the bullshit, a reload scam is never as “successful” as its predecessor.
After the initial coup of BitConnect victims were harvested, there simply wasn’t any interest from new investors.
A Ponzi scheme can’t pay out without new investment, and so the public value of DAV collapsed.
A few days ago Texas issued DavorCoin with a securities fraud cease and desist.
Rather than prove they aren’t a Ponzi scheme, DavorCoin’s owners have decided it’s easier to just shut down and do a runner with invested funds.
It’s literally a repeat of what the BitConnect admins did. Which in hindsight is hardly surprising, seeing as DavorCoin was entirely modeled on BitConnect to begin with.
As with BitConnect, DavorCoin’s owners have left desperate investors with a string of promises related to increasing DAV’s value.
Our main objective now is to bring DAV price where it should be. We are going to put our efforts in transforming DAV into a strong cryptocurrency.
We have many steps ahead that could boost the DAV value.
1. High performance crypto-to-crypto trading platform. DAV will be used as trading fee.
2. Instant exchange to altcoins: you can exchange instantly DAV to many popular altcoins.
3. Partnership with crypto debit card issuers so you can use DAV to make payments.
4. Total improvement on the DAV blockchain: to support SegWit, Lightning Network and Atomic Swap, which means DAV could be accepted at thousands of Bitcoin-accepted merchants.
5. Crypto shop: You can use DAV to purchase for popular gift cards (eBay, Amazon, iTunes, Steam…)
Seeing as DAV held no value outside of the DavorCoin Ponzi scheme, whatever does or doesn’t happen post collapse will be pointless.
In one final insult to their gullible investors, DavorCoin are dumping what’s left of their pre-generated DAV points onto investors.
We will release today all lending packages we have and every user will be credited in his account the number of DAV he placed in his/her lending package plus a 10% bonus.
As I write this DAV is currently trading at around 6 cents, down from a pump high of $170 or so last month.
While the loss in market cap as a result of DavorCoin’s collapse isn’t anywhere near close to the $2.4 billion BitConnect wiped, it’s still expected to run well into the millions.