$4M ‘exit scam’ suspected as Kokomo Finance flies off radar, token plunges
$4M ‘exit scam’ suspected as Kokomo Finance flies off radar, token plunges
Kokomo Finance – a Singapore-based “defi” project – is suspected of an exit scam after a sudden disappearance from social media, the company reportedly 'flying off the radar'. According to reports, Kokomo Finance's websites went offline and the price of the KOKO token fell more than 95% within a matter of minutes.
The project company raised over $4 million through private investments to develop an AI-based finance platform that included a DeFi-enabled token with staking and rewards features. It was announced as an Ethereum-based blockchain project that claimed to offer users the ability to manage their wealth with "financial autonomy" in an "open, transparent and cost-effective manner".
According to reports, the token dropped 90% in an hour, with the sudden disappearance of the company and their social media platforms. Many investors are pointing out that this could be the result of an exit scam.
While no official information has yet been offered by the company or its owners, many investors and traders are speculating that the owners may have “pulled a rug”, referring to malicious tactics used by unscrupulous project teams that are designed to exploit users. This speculation has grown as the Kokomo team and website have both disappeared.
The incident has led to chatter in the crypto currency community as traders and investors have been left in limbo about the fate of their investments. Many are also questioning the legitimacy of the project and the team behind it.
At this time, however, no official statement has been made by the Kokomo team concerning the incident, leaving many investors and traders in the dark.
The incident serves as a reminder of the importance of investing in projects only after thorough due diligence. It also demonstrates the risks associated with investing in a new project with no track record yet established.
It shows how quickly things can change in the volatile world of cryptocurrency, and that investors need to remain vigilant and aware of the potential pitfalls when investing in new projects.