Libereum — Avoid this one if you like money

RealTalkICO
Oct 1, 2018 · 7 min read

This will be the first of many articles exposing questionable cryptocurrency projects. Today we will talk about the most prominent one as they even gained national attention within the Netherlands — Libereum. A project that is in private sale right now.

DISCLAIMER: Do not contact me. What I write are my thoughts. I bear no responsibility in any of your investments. We share a space with scammers and money grabbers alike; this article aims to educate the people on potential red flags.

What is Libereum?

According to their Whitepaper, Libereum is a blockchain network ruled by the utility token Liber. Libereum will focus on building a network of users in the sports industry. In this case — football.

How? — You may ask. Libereum wants to buy football clubs with funds raised from an ICO (hard cap $78 million). They will then stimulate the fans of that club to purchase football tickets, fan shop items, food and beverages around the stadium with Liber. Liber will also be used to purchase football clubs and transfer football players. Instead of clubs paying 10 million USD for a player, they will be forced to buy the player via Liber acquired on exchanges.

During my time investigating Liber, very alarming red flags about the team and their business model came up, which I will share in this article.


What are the red flags?

In this section, I will explain why I think it is highly unlikely that the Liber ecosystem will be a success. I would even go as far as calling it either a pump and dump scheme or a shitcoin in advance. We will review the evidence in this section. Please note these are my thoughts.

Red flag 1: Claiming they have an tech-savvy experienced team

On page 4 of their whitepaper we see one of the clearest lies of Libereum, as they claim to be tech savvy and specialists on every blockchain area. The Libereum team would also consist of specialists in the football business. Let’s verify this claim among the key team leaders.

Whitepaper, p.4

Cem Kumlar — CEO

CEO and Head of support Cem Kumlar is not at all transparent on his past working experiences so we cannot verify his claim on having vast experience on either blockchain or football. If Scem Kamlur is indeed experienced i would expect him to show so.

Rob Ploum — Chief Commercial Officer

A glorified call-center employee, no experience on football or blockchain whatsoever.

Eric Ploum — Chief Operating Officer

Also experience in customer service, no blockchain or football experience.

Marlies Kikken — Legal

Libereum receives legal support from someone who is in essence a marriage counselor?

Also note that this is the current girlfriend of CEO Kek Cumlar.

Mohammed el Moussaoui — Finance

We can at least rest assured our ICO funds are safe, as Mohammed has experience being a student…. since 2008.

At this point I start to get curious what Scum Cabbage may have been smoking, because Iseriously need a hit of that. What is Libereum thinking by potentially having millions managed by some random student? Outrageous…

The rest of the team equally lacks any notable blockchain or football experience, except for new member Dean Akinjobi apparantly.

“Enormous experience running clubs, coaching teams and scouting players?” Sorry Cum Beflap, you can’t just say stuff like that — you need to back that up.

Conclusion 1: Libereum lies about having experience in football and blockchain.


Red flag 2: claiming their token will only increase in value

If anything a token should serve as a means, not an end. It is thus highly noteworthy that Libereum makes bold claims about the token becoming scarce and more valuable, that is, firstly, pretty absurd for a market as unstable as cryptocurrency and second of all it is not desirable for a coin fans of a club are supposed to pay with.

Libereum whitepaper, p.5
Wtf!? Whitepaper, p.7

The team goes on to claim several reasons why the token will increase in value:

  • Fans will use Liber to buy merchandise or food around the stadium;
  • Sponsors and partners will make their contributions in Libereum;
  • Libereum will be visible on all merch, which would make other clubs want to be purchased by Libereum;
  • Players will be transferred with Libereum;

These are very bold claims to make and there is zero evidence that even anyone would accept a speculative token as payment when there is a stable and easier alternative as fiat. If even other cryptocurrencies struggle to be used for simple things like groceries, how can we expect Libereum to succeed in allowing the purchase of entire football teams?

One of the main problems in this is that Liber will also be used for very large transactions. Transfer fees of millions of dollars will be paid in Liber, all of which Libereum wants to buy them via various exchanges. Imagine what this will do to the price of Liber at that moment. It is a pump and dump scheme in itself, which will attract a lot of speculators.

In Q1 2019, Libereum will make Liber the only payment method for fans of its first three acquired clubs (none announced as of now). This means you will constantly be checking the Liber price to decide when it is the best time to buy a beer during the game. The possibility of stabilizing mechanism is not mentioned in the whitepaper.

In short: let’s hope Libereum will not buy your favorite club.

Conclusion 2: Liber will fail as a payment method


Red flag 3: What is Liber going to do with their funds?

The whitepaper does not speak a word on the allocation of funds after they have reached their hard cap of $77 million (which will be very quick according to them). Only a rough token distribution has been made (e.g., 15% to management, 10% to the team, 40% ICO (????) etc). It remains entirely unclear what Libereum is going to do with the raised funds. Though looking at who manages it, it might have to do something with paying back student loans.

However, some funds would go towards the development of an app as well. An announcement on their telegram reads:

Our cooperation will connect football technique training with Libereum in a yet to be developed app. The app offers pupils around the world the chance to get technique trainings on different levels and on increasing difficulty. Each level will be unlocked with Liber as the in-app currency. At this moment there are already deals with 3 national football asociations which will guarantee the actual demand for the app and thus Libereum at a few million active users of the app.

So we can conclude there is no app but somehow national footbal associations* have promised to use it? Cam Kummer is either a magician or the greatest businessman the world has ever seen.

Conclusion 3: Libereum has not communicated what they will do with your hard earned money


Closing remark

As you can already tell by my demeanor I am not at all a fan of this project and so decided to warn other parties interested to stay away. What we see here is a classic ICO fairytale, bold claims with zero proof or experience that any of what they claim is ever going to happen.

Please note that there are many more reasons why Libereum is a project you should stay away from, but I am not in the business of writing books or novels. Just open their whitepaper or read their Telegram channel and you will be convinced why this project is a literal no-brainer.

For example, in this article, I even pass up on another very important question: WHY BLOCKCHAIN? Page 5 of the whitepaper touches on that, or so they claim. However, all they talk about is the Liber token value. There is not a single word on why Libereum uses a blockchain solution. Questions in the Libereum telegram channels have been answered by “because blockchain is the future.” Applications of blockchain technology, therefore, remain very vague.

I have also tried asking around on their Telegram channel for more info, but if you have a critical question, you get bad-mouthed and eventually banned. What is ironic here is that their head of support — Ahmed ‘Rico’ Qaddour — is especially aggressive towards those with legitimate and critical questions.

Maybe a change of team would be appropriate, or maybe a change in the business idea, or maybe a change in both.

Conclusion: Stay far away from this one.


DISCLAIMER: Do not contact me. What I write are my thoughts. I bear no responsibility in any of your investments. We share a space with scammers and money grabbers alike; this article aims to educate the people on potential red flags.

RealTalkICO

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