I would like to stress that this open letter is not designed as an attack on VeChain and it is not my intention to damage VeChain or the value of its tokens. It is not my purpose to prevent people from investing in VeChain. It is for each individual to decide that for themselves. The goal here is to do my bit and help clean the community of bad actors so the project can move forward and prosper.
Dear VeChain community,
I have written the following piece in the hope it inspires our community to take a closer look at VeChain’s associates as I fear there are unscrupulous players who are exercising significant influence over the project. I was brought up to never take things for granted and never be ashamed of asking questions. This has led to me having the mind that I would not take things at face value, always question and give consideration to other possibilities. It has served me well especially since I started in crypto a couple of years ago.
RISK
In the wild west of crypto it is important to do everything we can to ensure we minimize the risks we are taking with our investments. When we compare crypto investing to mainstream investment opportunities, crypto can be classified as extreme high risk. With that risk comes the potential for extreme high reward. This, along with the ease and speed at which we are able to set up crypto investments is the main attraction for the majority of us. So when we find a company which we believe has an amazing vision and a top notch team such as VeChain, we are often desperately keen to commit large percentages of our portfolios to them. The greater the risk the greater the reward, right?
CAVEAT EMPTOR
The largely unregulated crypto space has a community which does a great job at protecting its own. There are many people out there dedicating a lot of their valuable time warning of fraudulent ICO’s, con men and scammers, but also helping people navigate the pitfalls of the technology itself.
“Caveat Emptor” (Buyer Beware), “Don’t invest more than you can afford to lose”, “Keep a diversified portfolio” are all mantras which we see across social media and form the basis for ensuring that we minimise risk yet maintain the potential for high reward.
“DYOR” (Do your own research) is one of the most important of these and yet perhaps the most ignored. If you have ever invested in an ICO without having read the white paper then you fall into this category. Often we do not find the time, have the inclination or have the technical ability to read and understand white papers, “Someone more clever than me will read it and they’ll tell us if it’s good or not”. Also, YouTube has no shortage of crypto influencers ranging from the high quality honest commentators to the Robin Hoods, to the downright corrupt who will take payment in return for their shilling services. Which YouTuber we chose to believe is often the one who speaks favorably about our own investment and not necessarily the one we believe to be the most honest.
SLIPPERY SLOPE
The trouble with allowing others to research on our behalf is that we have no way of separating truth from lies or fact from fiction. If we give up ownership of understanding and knowledge then we find ourselves in dangerous waters. By becoming passive in this way we are at great risk of being exploited. This is pervasive in crypto and we see entire communities rise and fall in this way.
Satoshi created blockchain technology to overcome issues of trust and yet many of us who embrace the technology are quite happy to place our blind faith in projects based on what we hear from others.
It is time to remove the blindfolds.
HIDING IN THE SHADOWS
I will now discuss someone who has only recently come out of the shadows but who has been working with VeChain since November 2017. Someone who is listed as a strategic advisor and is involved with many different projects on the VeChain platform. It is up to yourselves to look into this person as I am in no doubt that his involvement with VeChain and its ICO’s is potentially seriously damaging to these projects. It is concerning to know that he has such close ties with CEO, Sunny Lu. It is my opinion that he may have committed securities fraud and financial crime and as a US citizen could eventually be prosecuted.
The information in the profile written below is public knowledge and therefore I do not feel obliged to provide evidence.
JACKSON FU
- Chinese American citizen
- One of two people who make up the company known as CREAM, LLC (A Limited Liability Company (LLC) means your personal assets are protected from legal claims made against the company. The LLC separates the members from the business itself.)
- Does not have a business address as CREAM, LLC do not have any offices and there are no phone numbers registered with the Nevada Secretary of State, only a P.O. Box address
- Link to NVSOS (CREAM, LLC): https://www.nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=iXiqcIlj2lTHkdi5%252fj1hEg%253d%253d&nt7=0
- Prior to its involvement with VeChain in November 2017, CREAM, LLC has zero track record
- The company website is blank, has no content and all the social media links simply return you to the website’s single page with the exception of the twitter link which is for a banned account.
- Link to company website: http://creamandpartners.com
- Is an official advisor to VeChain and the following VeChain ICO’s: OceanEx, CAHrenheit, PLAIR, Safe Haven, MustangChain, Esprezzo, DECENT.BET
- Has insider knowledge of VeChain
- Has made public predictions of VeChain token price
- Is widely believed to be behind the Twitter shill account, The Coca Cola Kid (CCK)
- Is the main Admin in the Telegram group chinacrypto.info abbreviated as CCI. He is called CREAM in this group
- Recruited from CCI to form a closed group and insisted on them giving him KYC information promising to make them millionaires
- Made indirect threats of violence in CCI to anyone who betrays him when asked why he required KYC details
- Encourages and helps his admins and members participate in FUD campaigns. I have witnessed attacks on: Neo, Ontology, Waltonchain and CPChain amongst others
CLOSING THOUGHTS AND SPECULATION
Until recently I was satisfied with the risk reward ratio I had in VeChain however when suddenly this character CREAM came out of nowhere naturally I was curious. So I watched the Amsterdam meetup video to reaffirm my belief in the project and when I heard Jackson Fu’s speech I started to have a gut reaction about him and his CREAM “company’” that all was not right. The fact that he is involved in every VeChain ICO is alarming to me. He has been praised for coming from a financial background however has no technical expertise. Add to that the rumours surrounding him and the extensive hype marketing and I found myself doing extensive research that I wanted to share with you.
All these red flags draw me to the inevitable conclusion that Jackson Fu is making himself and his close knit group rich by manipulating investors and the price of the VeChain token. I will now share with you what I believe to be the template Jackson Fu uses. Please note that this is my theory based on the research I did which included lurking in CCI for longer than I would have wished and monitoring other community’s social media.
- Choose your next low cap project and buy large amounts of cheap tokens
- Create a private group of likeminded lieutenants and insist on them giving up KYC details to protect yourself from future betrayals
- Form a relationship with the target company’s CEO by offering your marketing and hype services. In return take payment in the form of tokens, control of the company social media accounts and official roles in the ICO’s
- Get to work and hype the company and start to build the token price (recruit crypto YouTubers)
- Sell off some tokens on the pumps
- Create a social network channel which runs parallel but not in conjunction with official channels and drip feed insider knowledge to make the members feel privileged and secure their loyalty. This is the pool to recruit from for future ventures
- Promote the BUY & HODL mentality while making outlandish short term future price predictions
- Sell off some tokens on the pumps
- Find a competing project and use your lieutenants to start a crypto “war” in order to create a common enemy that your social group can unite over
- Sell off some tokens on the pumps
- Have your lieutenants orchestrate the spread of this “war” to the larger community and attack other communities in order to keep the FUD and common enemy story alive
- If the token dumps use the “war” as a distraction and utilize proven pump techniques such as The Coca Cola Kid (CCK) tweets
- Make big money and move on to the next project leaving the small fish holding nothing but their broken dreams
- Rinse and repeat
This is clearly damning stuff and I suggest anyone who is invested in VeChain or its ICO’s look into this for themselves. At the very least his behaviour in public social media groups is certainly not what you would expect from an official advisor to companies with global aspirations.
Thanks for reading,
Anon
(Having seen how Steven Mostoviy was treated after publishing a YouTube video of his visit to the VeChain offices and addressing some of our concerns I have decided to remain anonymous)
