Lampix adds to the list of high profile ICOs that have failed only a few months after launching. The ICO raised over $14 million in the August token sale, of which $5 million was raised in only 48 hours. Currently, the value of the token has fallen by a whopping 50% as details emerge of an unflattering portrait related to the project’s technical lead.
The conceptual product which propelled this ICO to such great heights was intended to offer the ability to render any level surface into an interactive display. The concept elicited high enthusiasm but has since run into difficulties. A closer look into the man behind the product, Lampix CTO Mihai Dumitrescu, sheds some useful insight into why this might be.
In August this year Dumitrescu received a twelve year ban from directing any company legally residing in the United Kingdom. This action was undertaken after Dumitrescu had sold his company Boston Technologies without informing stakeholders, with a subsequent audit of company records revealing that over $3 million was missing from client’s balances.
Devil is in the Detail
A reading of the Lampix ICO whitepaper reveals a series of questionable disclaimers which investors appear to have routinely ignored. At this stage, it remains unclear if the Lampix project intends to pursue its original roadmap.
Whilst the case serves up an example of why individual investors need to perform their own due diligence, the Lampix case almost demonstrates the need for a more robust regulatory framework to protect less discerning investors.