Velix.ID, which is using blockchain to enable frictionless identity verification, has postponed its token sale.
The Velix.ID pre-sale 1 has been paused after raising $1.4m, and the rest of the token-sale has been postponed to improve security according to the company.
In a company statement, Velix.ID claims that many potential investors have been duped into phishing scams, on Telegram and elsewhere, with scamsters pretending to be from Velix.ID team and creating usernames remarkably similar to the actual core Velix.ID team members. It estimates a total loss of more than $50,000 for the investors who got misled by the scamsters.
“We have always focussed on building a genuine product that helps solve real-world problems. As such, we also want to ensure that we prioritize the security & integrity of our token sale platform above anything else,” the company said in a statement.
“We value the trust that our investors have put in us by investing in the Velix.ID token pre-sale, and as such, we want to make sure that all investments are kept secure, unaffected from any security breach attempts or phishing attempts. “
Other breaches happening with other Blockchain Startups and their token sales are also another major cause of concern for Velix.ID, resulting in the company has into taking ‘this somewhat extreme step.’
“Heeding to the words of our Advisors, who come with overwhelming experiences in the Blockchain Industry & security experts, we have decided to take the step of postponing the rest of our Token Sale to a later date. We will be conducting multiple Security Audits during this period to ensure that our systems are secure from any maleficent attempts.”
Last month, Velix.ID announced plans for a token sale as it aims to build a universal, obscure, transparent, decentralized, time-efficient, and cost-efficient ecosystem for identity verification. It is utilizing blockchain Smart Contracts, Zero Knowledge Proofs, and Stellar Consensus Protocol (SCP) to build an ecosystem that ‘optimizes time & cost resources’.
The RegTech Blockchain startup also recently announced that it is partnering with Cryptocurrency Exchanges in India to improve upon the existing KYC processes. The initial cryptocurrency exchanges to confirm the partnership with Velix.ID are Coinsecure & Bitxoxo, two of the largest Bitcoin exchanges in India.
On the partnership with Velix.ID, Mohit Kalra, the CEO of Coinsecure, said: “The current process of KYC and identity verification is too troublesome and tedious for us as a Cryptocurrency Exchange and a cause of significant loss of business. I personally believe that with Blockchain Technology, this process can be improved upon drastically. When the idea of Velix.ID was presented to me, I was left impressed with the idea and the technical soundness of the execution plan. In fact, I wholeheartedly believe in —not just the idea— but the actual ability of the Velix.ID team to be able to execute this project successfully.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
