Unidentified Hacker Causes Major Setback In CoinDash ICO

A malicious perpetrator stole the thunder of the much advertised Initial Coin Offering (ICO) of a start-up project named CoinDash by transferring a whopping $7 million to an incognito source via 2100 transactions as per Etherscan reports.

Shortly after the token sale managed to secure $6.4 Million from its whitelist participants and early contributors, the sale got compromised as the hacker altered the ethereum address  soliciting funds to a hoax link.

The website of CoinDash has pulled its shutters and have requested affected investors to submit their particulars for prospective CDT token allocation. Further sale has been terminated following the website security compromise. CoinDash has issued a statement stating that money transferred to the sham address after shutting down the website shall not be indemnified.

The major focus areas of this blockchain start up firm is portfolio management platform and social trading. The sale was estimated to last 28 days and generate a corpus of $12 million hard cap.

As the CoinDash vision keeps on shining with a deep belief of returning to back to trading in future we cannot undermine the level of jeopardy  involved in the cryptocurrency business. An event of similar nature occurred last year when $50 million was stolen from investors participating in the ICO of a project named DAO.

The quick funding structure of ICO’s have always attracted a bevy of scammers who see it as a lucrative opportunity of pumping hefty sums out of unwitting investors. Hackers usually hijack the e-mail address and direct traffic willing to avail the benefits of an early bird’s sale to a fraudulent link. This is exactly how the CoinDash’s crowdfunding page underwent a major cyber security breach.

CoinDash debacle has added to the downward surge of Ethereum since its June high figures approaching $400 when it was poised as the next big thing all set to take on Bitcoin in market cap. However its price erosion of late make such chances look really bleak.

KryptoMoney.com posts latest news and updates about Initial Coin offerings, Cryptocurrencies and Blockchain Technology.

 

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