It was a highly-rated ICO on icodrops.com, and a large number of people had joined the whitelist in anticipation of the ICO on the 15th January. But now it looks like the ICO has ended and all $22 million’s-worth of tokens that were on offer have been sold. This is strange though, as the website was down for a large part of the day, and a number of people online have complained of not being able to access any tokens. So, what’s going on?
Is it a Scam?
Thekey generated a lot of interest by holding pilot schemes for their project in 43 Chinese cities. Their team members were widely interviewed in the news, and they haven’t made a secret of their identities. This would make them seem legit on the surface. But today a Reddit feed has shown a number of users reporting inconsistencies in price, and the inability to access the website during the stated ICO period. There are also a few concerns from those who have read the whitepaper, and have looked into buying tokens to discover that they aren’t offered by means of a smart contract.
Interestingly enough, the website is currently up and running at the time of writing, although the link to “buy TKY” creates a 404. It seems a bit of a mystery at the moment, as to where these tokens have gone, or if the whole thing was indeed a scam. However the Twitter feed remained active, with the company assuring people that the website crash was simply due to an extremely high volume of traffic. It is fair to say that if they really did sell $20 million in just a few hours, that it is a possibility.
I just published “Dear community members,
THEKEY official website is experiencing extremely high volume of visits…” https://t.co/Gn4XsmN80x
— THEKEY (@thekeyvip) January 15, 2018
What’s All the Fuss About Anyway?
Following high-profile demos, it is likely that if the sale wasn’t a scam, a lot of interest will have come from China, where the company is based. They are looking to expand their existing business in ID verification from 210,000,000 people to 500,000,000 by 2019, and switching to blockchain technology for additional security. They use government data, and believe that they are quicker and cheaper than their competitors.
It will be interesting to watch this development and see what happens with regards to development. We at Bitrazzi will be watching closely for updates from the company, and a clearer indication of whether there was a technical issue, a massive rush of interest, or foul play.
What do think about Thekey? Does it seem like a scam? Let us know in the comments below.