Veritaseum: The Truth Behind the Promotion
The transformative nature of cryptocurrencies and the blockchain technology that underpins them has captured the fascination of the public, investors, and corporations. Yet it has also opened the door for certain individuals and projects to peddle unrealistic promises, package them as “offerings,” and raise vast sums far exceeding those raised by previous technology start-ups. We believe to be an extraordinary case of this phenomenon. In the report that follows, we aim to bring a dose of reality to the inflated and often contradictory narrative Veritaseum has spun. Because we anticipate that a certain few participants will blindly label any criticism as an attempt at manipulation, we would like to simply note that the report that follows is the product of hundreds of hours of research (both investigative and financial), interviews with a number of cryptocurrency experts, primary source evidence, and the conclusions we drew. We do not have, and never have had, a financial position of any sort in Veritaseum or its related tokens.
We believe in the enormous promise of the crypto-asset space. We believe in the paraphrased adage that a dollar saved is a dollar earned. And as crypto-asset investors, we understand that in a sea of exceptional investment opportunities, the cost of allocating capital to dubious projects is immense. We therefore choose to contribute to the development of the crypto-asset space by identifying and pruning the few projects which are devoid of substance and represent a material threat to investors’ long-term returns. We recommend reading this research to any holder of Veritas tokens, anyone considering purchasing Veritas tokens, and any crypto-asset investor interested in in-depth valuation analysis and due diligence.
In the report that follows, we deliver evidence to substantiate the following claims:
- Veritaseum and Middleton have a history of failing to deliver on promises made to potential investors. The product on which the Veritaseum platform is based was scrapped due to regulatory issues.
- Veritas tokens grant holders no legal rights or recourse. In effect, they are an unenforceable promise by Veritaseum to deliver nebulous consulting and software services at some point in the unspecified future. As such, they are a poor conduit of value.
- The incredibly concentrated ownership of the Veritas tokens (with approximately 98% held by Middleton) represents a single point of failure and is antithetical to a pivotal advantage of other crypto-assets, decentralization.
- Middleton has no technical background in cryptocurrencies or technological development. Key team members have left the project or are not employees at all but 3rd party contractors.
- Veritaseum’s research reports are of poor quality and have virtually no demand.
- The company’s patent application has not been granted; instead, patent examiners have called into question whether its claims demonstrate novelty and inventive step.
In sum, our research leads us to the conclusion that the value of Veritas tokens is close to $0.