DESICO Shady Practices: Avoid Future Financial Losses from Scams

DESICO or Decentralized Ecosystem for Security ICOs is supposed to be the“future” of security token trading. The platform will allow accredited (KYC’d and AML’d) investors/traders and start-ups to buy, sell and issue security tokens in full compliance with regulations.

At first glance, Desico is promising since the next probable crypto hype will be the emergence of security tokens after the era of Initial Coin Offerings (ICOs). Desico is one among the many crypto businesses that plan to capitalize on the rise of security token offerings or STOs.

They promoted heavily on social media via bounty programs in which instead of paying participants outright with BTC, ETH or cash, they were promised a portion of the ICO or STO tokens. Frankly in 2017, bounties were popular because of this — since the fundraisers wouldn’t have to shell out anything with actual monetary value, practically zero risk for them (It’s only when the token is traded, it gets value).

Vytautas Matulevicius — Chief Marketing Officer in Desico also promised a specific date range for distribution:

Hello! Tokens for bounty participants will be distributed after the Token sale on January-February 2019

It was also clear from the very start that whether it was an ICO or an STO, campaigners will get paid for their efforts in spite of the additional hoops participants had to get through (KYC procedures that were not required before). I somehow suspected they are trying to reduce the number of participants when they implemented KYC/AML procedures for promoters so that they will pay lesser number of people.

DESICO KYC will be open until token distribution which is set on the beggining of February 2019. KYC/AML procedure will be required in order to claim earned tokens, the same at it was when we were planning to have DESI utility token crowdsale. It was announced in bounty conditions and it will remail as it is legal requirement.

Even DESICO Community Manager, Ingrida Willems, was echoing the same message.

A quick Youtube search will even show you videos by Laimonas Noreika talking about STO and accompanying bounty programs and not an ICO.

ICO/STO promoters stiffed by Desico after raising some $1 million in funds

And then suddenly Ms. Willems announced that because of the laws regarding securities; they cannot pay what they owed the promoters. They do not know how to pay for the almost six months of promotion made by bounty participants.

And Willems said they can only say thank you and are sorry you won’t be paid.

If you have already invested in this crypto project, you’d better be careful around the greedy bastards. If they can do this to the bounty participants, they can surely and just as easily can do it to you. I can already imagine some future excuses on why it got delayed or abandoned, etc, etc. Run away now!