Davor Coin Fell Apart, While Denying Until the Last
The pyramid scheme, launched in late December, failed spectacularly, but the project promised to return until the end.
Hypothetically, Davor Coin could rise off the ground and return. In reality, though, it is unusual that the DAV digital asset would become valuable again.
Davor Coin was a crypto lending scheme not unlike BitConnect. However, this time, investors lost confidence much earlier. In the end, the project team released all coins, crashing their price by 99%. The ominous signs happened in mid-January, but the team only threw in the towel in February. Before that, the coins were locked away. The final message from the team held promises, but little hope:
Due to an overwhelming number of dav putting into staking our pool stop functionning correctly. We released all dav and we're working to find a solution
— DavorCoin (@DavorCoin) February 8, 2018
Staking pool will be back soon
We're implementing new features to make the blockchain more stable and DavorCoin more valuable
The price of DAV sank and never recovered over the past few days:
The last time the Davor Coin platform paid out interest, it was not in dollars, but in DAV coins, bringing the ire of investors.
Their WHOIS infor for https://t.co/PP5EqTW5fO is hidden because of cloudflare. I have found some of the owners identities and email addresses.
— MicroPC (@MicroPC6) February 7, 2018
Now, a secondary market may be appearing for DAV coins, which may still be used for speculation. The Davor Coin team has written a long post with the promise to transform DAV into a legitimate digital asset. But their bid still raises red flags. Even the technological buzzwords sounded unconvincing:
"...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."
Given that those improvements have not materialized even for the biggest crypto coin projects, it is highly doubtful Davor Coin can pull off the feat.
Cease and Desist
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Don’t Mess with Texas! State Determined to Keep Unscrupulous Crypto Players Out |
Just like in the case of BitConnect, the final fallout for Davor Coin came after a Cease and Desist order from the state of Texas. As scams and fraud are intensifying in 2018, regulators are more aware of the risk of crypto coins.
Just like with BitConnect, the state of Texas issued the order based on the practice of the Davor Coin team to hire individuals who offer investment opportunities without being registered dealers or agents.
The order also underlines the fact that the Davor Coin team is largely unknown, as well as the origins of the company.
