Life teaches us many things. Sometimes we follow the lessons, and sometimes we make the same mistakes that got us on these lessons. Maybe it’s because we didn’t have a proper teacher? Or is it because we think we can handle it the second time?
If I’ve learned anything from my years of experience in the crypto industry, is that you can’t be too careful with life lessons. Once I’ve encountered compelling cases of crypto startups scamming people, I started investigating projects and came across LAToken.
Now we all know (in the crypto community) how to spot red flags, and their flags were obviously red. However, they managed to drag thousands of people in their project, just to be disappointed and scammed.
You might take my words for scepticism, but there was something wrong with LAToken project
Yes, the idea behind the project is noble – helping people acquiring their desired objects and making illiquid assets liquid is a fantastic dream. But it seems more like a dream than a reality, especially after listening to what they have to say about their process.
- Their prognosis was the growth by 1000 times by 2025, meaning that LAToken would reach 1.2 trillion in a few years.
- I’m not even talking about their lack of transparency. Is there even a blockchain present in their project? Who knows?
- Poor community management from their side is also a well-known fact.
So why do people still get baited on such projects? Because the founders speak loud and confident.
Confidence fades away with uncomfortable questions
It’s a well-known fact that if you speak loud enough, you will be heard and will be taken seriously. Apparently, Valentin Preobrazhenskiy follows this method in his speech and avoids uncomfortable questions at all costs.
In his investigation, Russian digital marketing manager and Cryptocurrency analyst, mentions his encounter with Valentin Preobrazhenskiy, CEO of LAToken. He describes the first meeting as an exciting and engaging situation. Back in the 2017 LAToken ICO seemed like a promising opportunity, and he decided to give some advice to the creators to push the project even further.
- Their strategy seemed a little off.
- Their website was a bit weird (at that time).
- They needed help and advice from a professional.
Despite the apparent facts, they didn’t consider any of the advice and continued the way they knew how to work. It was enough to see that there was something suspicious with their case to start investigating more. That’s when I got interested in the situation as well.
If you want to read more about the investigation and encounter with Valentin, you can read the three-part story here.
If you’ve ever worked on an ICO, crypto or blockchain related project, you will know that you’ll get unpleasant questions, doubts and demand for detailed information. Well, Valentin Preobrazhenskiy treats these questions differently. Whenever he encounters a tough question, he avoids answering it, stares at you with intimidating gaze and can even ask you to leave the room/conference.
Valentin Preobrazhenskiy doesn’t understand what blockchain is
And we can prove it!
First of all, let me state that it’s crucial for a founder to make business processes transparent and show his/her knowledge and expertise in the subject. Valentin, on the other hand, failed in this task and confused LAToken’s audience in his interview.
You can watch the whole thing here, but let me point out some of the most interesting facts he stated (for those who don’t speak Russian).
3:37 - He says that “Blockchain will fundamentally decrease the costs of listing (on exchange)”
3:45 - He goes even further to state that the blockchain “can also make accounting reports transparent in real time for investors”.
9:31 – This is the crucial part. He states the role and purpose of LAToken in the process of buying and selling illiquid assets. Let me spare you some time spent on listening and translating his words – none!
Needless to say that his words were followed by confused comments from the audience and more scepticism.
Aver812 (user) – “I don’t understand, what is he suggesting? How do we use this token? Many tokens offer reduced transaction fees, and why is this one better?
How is he offering tokenization of the assets?”
Is blockchain even there in this project?
One more thing that I got suspicious about (and not only I) is the lack of blockchain mentions. They do talk about the benefits of blockchain, but where is it? Where’s the transparency? Where does the blockchain come in?
It’s either very well-hidden, either they don’t have the answers on tough questions.
Yaroslav Loginov – “Yesterday I came across an interesting case. I was meeting with the founders of LAToken and asked Valentin Preobrazhenskiy a question about what the LAToken does, and what kind of blockchain do they use? Valentin couldn’t answer my questions, and even more. He told me that it’s better if I would leave. I recommend being cautious with LAToken. I don’t see any blockchain in there and have no idea what type will they be using. High chance that they are scammers. We’ll live, we’ll see.”
What is up with LAToken team?
After all the talks about Valentin, I feel bad for him. Let’s talk about other teammates and some who didn’t even know they were in LAToken team. I’m talking about the hilarious case of LAToken vs Ranier Michael Preiss.
Rainer Michael Preiss found himself in the list of LAToken advisors.
What disturbs me the most?
Even after so many red flags, classic scammer moves (Rainer Michael Preiss case) and incompetence of the founder, SEC still didn’t consider LAToken a threat.
Even more, some investigators (like this one) got confused by the media claims and aggressive promotional speeches from LAToken founders and announced the project as safe and legitimate. Howey Test had passed, and the US citizens were allowed to invest in LAToken.
Now we all know what LAToken really is, but it’s so hard to let people see the flaws of a potential scammer.
Thanks for all the pieces of valuable information, inspiration and support to:
- Rainer Michael Preiss
- Yaroslav Loginov
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