Confessions of a White Paper writer - from decryptmedia.com

[vit05]

https://decryptmedia.com/6643/confessions-of-a-white-paper-writer

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Creative writing
“Most time, there are cases of funding budget padding,” said Adefemi Yusuff Adegoke, a prolific writer. “A project that can be executed with $180k funding budget can be padded up to $450k. And they won’t report the total amount realized during ICO.”

“Most of the fraud are in the miscellaneous  part of the budget,” he added. “Those ones go directly into the pockets of the CEO and CTO.”  



Interesting article about what happens in the construction of the white papers and all that fraudulent industry that was created with the ICO. Many of them with no function or purpose.

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[OrangeSeller]

I knew this right from time and I am not surprised a bit, though the problem I have with this companies is that after padding the budget for their project and hitting the desired rate they want to achieve (hardcap), they still end up not delivering on the project they promise to deliver which is so bad and makes a lot of investors loss trust in them and ICO as a whole, I rather now participate in IEO then ICO because IEO is being controlled by well-known exchanges.

[justspare]

The most hilarious one I even head of recent was that of a project claiming to spend $9000000 out of $10,000,000 on promotions, what exactly they are promoting.

There is no much transparency in some whitepapers, although we have some projects that when you see and read, one will know too that such requires lots of capital, and we will be convinced that whatever amount being requested for is worth it.

The annoying part is some small project that doesn’t even deserve to run on $500,000 project claim to be needing up to $5,000,000, and I wonder what people are really researching when the thing is all there in the whitepaper for them to discern, well, there is nothing much you and I can do, padding is done everywhere, the most important thing is for them to successfully carry out the project and make it a working one.

[betty11]

Haha! this is mind blowing, these ICO and IEO guys are just getting rich overnight. On the part wherein they may not fully declare the total fund that was collected through ICO, I have always thought just a single company's wallet for each acceptable coin is used in collecting the fund, except for the Private sales. I remember when I participated in Tokenpay ICO last two years, the team had to allow audit of their account before they ever discuss exchange. Budget padding is fraudulent, ICO fund should be audited and all team members be made to declare their asset before and after crowdfunding if possible.