Bitcoin Forum

Scammer's profile: https://bitcointalk.org/index.php?action=profile;u=172116
Announcement thread: https://bitcointalk.org/index.php?topic=758004

GetGems raised almost $800,000 in BTC through a crowdsale on here using Koinify. It says in the first post of the announcement thread that the app is designed from the ground up. What they actually actually managed to come up with in nearly 2 years of development, was to rip off Telegram and make a few modest modifications (Incorporate GEMZ crypto, custom skin, channel to broadcast ads, etc). They also failed to release the source code for GetGems, which is essentially Telegram (open source), and named their app 'Telegram with GetGems' to gain exposure and downloads in app stores, as 'GetGems' on it's own wasn't cutting it.

If that wasn't enough, in the fall of 2015 it was revealed that the GetGems team were working on another project, PayKey. Many investors started asking questions about the funding of PayKey and Peled1986 would constantly reassure investors that the new project would benefit investors, while failing to address whether the GetGems crowdsale was funding the development of PayKey, which it obviously was. Eventually, even the most ardent supporters of GetGems became disillusioned, and called out Peled1986 on his conniving ways. The GEMZ currency was delisted from Poloniex due to bugs and transfer delays, which caused people to complain even more. Peled1986's response to the mounting criticism was to lock the announcement thread and stop posting on here, although he still frequently visits the forum.

A week ago David R. Allen, another person involved in the GetGems scam made a post on their blog: https://medium.com/@GetGems/getgems-and-beyond-d178117f520#.n97rakn4x. Notice the following quote:


Now check out this slideshow from a startup pitch they made at a conference: http://www.slideshare.net/IsraelMobileSummit/paykey-startup-pitch-at-the-mobile-moentization-summit-2015-startup-contest

Take a look at slide #16, which alludes to the Koinify (GetGems) crowdsale being a source of funding for the PayKey project (In case he tries deleting it):
https://i.imgur.com/Vg1jYpZ.png

It's obvious that Daniel Peled and David R. Allen are lying and that PayKey development was funded with GetGems investors' funds. They essentially pulled a bait-and-switch scam, and used funds meant for GetGems development on PayKey, while maintaining that the two projects are unrelated in terms of funding. I'm sure with further digging, a lot more evidence against Peled1986 can be uncovered. Koinify also has some explaining to do, as they guaranteed 3rd-party accountability to the investors and then abruptly shut down, with no transparency as to the release of investor funds to GetGems.

All in all, this thread serves to warn others on here from investing in any future ventures undertaken or connected to Daniel Peled.

If anything comes of paykey without getgems, I will personally bring suit to recover paykey to GEMZ holders, its rightful owners. Post a comment here if you would like to be contacted if legal proceedings become necessary.

He was so brave to publish his identity, and I remember he got Round-A fund? The angel investor was blind to waste the money on this scammer. But Daniel Peled does nothing to help the ico investors, highest price was only 8k sat, ico price is 6k sat I remember? Now is 1k, dead coin. >:(

Cant put much hope on new coins mate.... Everyday there are a dozen coins being released and almost every one of them are scams... People have to do their due diligence before investing any funds.

Dario Mutabdzija, co-founder of Koinify and orchestrator of the Getgems crowdsale, is Daniel’s employee at PayKey.

https://www.paykey.com/#/team

https://www.crunchbase.com/person/dario-mutabdzija#/entity

As in, the impartial "third-party" that was to protect investors' interests by holding the funds in locked milestones was onstage this week promoting PayKey. Likely being paid by the very money he failed to safeguard.

Just when you think you've seen the depth of this scam.

Most alt-coins released today are scams to profit the developers of the coin.

They have an ICO, then a development plan to pump the price, then the ICO gets dumped and the coin is dead.
After that the developers simply rinse and repeat.

Good catch, they did a poor job of removing the evidence of their scam. It's like they don't even care.

Most scammers who leave multiple evidence of their scams live in countries that makes it very hard/expensive to pursue legal action.

Also there needs to be a handful of investors who lost an amount that justifies the cost and time required to pursue legal action.

Check out Dario's Twitter header graphic:
https://twitter.com/DarioMRM

On the whiteboard you can see: "$800K + $400K" at some PayKey presentation in Asia.
(That would be 800k from the crowdsale, and 400k from the VC's.)

Yet, they tell us in the recent newsletter:
https://medium.com/@GetGems/getgems-and-beyond-d178117f520#.vz4q8sikk


I think they are beyond caring about evidence of their dishonesty.

Scam victims tend to be an apathetic and shame-filled bunch...

New stuff from Daniel Peled and some of his old GetGems crew: https://orbs.network/
Orbs telegram group: https://t.me/orbs_network

Long story short:

- GetGems had VC governance from day one, there wasn't any misuse of funds.
- The validation to this is that very reputable additional investors such as MasterCard, Santander InnoVentures, CommerzVentures, Siam Commercial Bank, SBI Group invested in the company in the round A and round B investment rounds.
- Every one of these investors is exposed to the financials statements of the company and disclosure schedule detailing all the agreements and history of the company. If there was even a slight risk that the company is a scam or that there was any wrongdoing these reputable investors would have never joined.

Some facts:

GetGems was the first ICO in Israel back at 2014, it was also the first israeli crypto company to receive funding from a reputable VC (Magma) with many strong portfolio companies such as Waze, Argos, TabTale etc.

GetGems was also the first ICO to raise funds with a milestone based structure (using Koinify platform). This meant that the project didn't receive the $800k raised instantly but based on accomplishing development milestones that were detailed in advanced. Adam Krellenstein the co-founder of Counterparty and a well respected protocol developer was the arbitrator for the GetGems funds which were held in a multisig wallet.

GetGems built the promised milestones (and a lot of other features) and reached 300k+ organic mobile downloads which was a big accomplishment only few other crypto apps reached at the time, but unfortunately the adoption wasn't strong enough to raise additional funds to keep the project alive as is.

As many startups do in such a situation new ideas were thought out and eventually the project pivoted to become PayKey.

It's important to note that none of the funds raised during the token sale were used to build PayKey rather funds from Magma and additional funds from respected investors such as MasterCard, Santander, CommerzVentures were raised during the Series A round: https://www.finextra.com/pressarticle/67161/paykey-raises-6-million-in-series-a-funding and Series B funding: https://techcrunch.com/2017/10/19/paykey-raises-10m-for-its-millennial-targeted-social-banking-smartphone-keyboard/.

Some people don't realize but $800k isn't a lot of money in the startup world, it's about 12 months of operation. If you get a product market fit and traction you might be able to raise additional funds if not most likely you will close the business. A lot of startups with much more money have failed. It's hard to build a real sustainable business. Working hard and having partial success or even failing eventually is very far from a scam, and is what nearly every real entrepreneur has experienced.

scam

Mr Peled, Your claim that "none of the funds raised during the token sale were used to build PayKey" is questionable at the very least considering that in your own blog on medium in 2015 you stated:

"PayKey was created by GetGems and is a patented system that enables payments to be made within social networks’ chats including Facebook’s Messenger, WhatsApp, SnapChat, Twitter etc."

Reference link as follows:
https://medium.com/@GetGems/airdrops-top-11-in-buffalo-ny-paykey-and-the-getgems-web-version-4815edfbd955

Please can you explain how IP and funding from Getgems was not used in Paykey development?

https://twitter.com/tocryptopia/status/989431321796657152
Case against Daniel Peled the alleged Getgems scammer