Substratum is performing well on the market, but rumors abound it is crashing

04 Sep, 2018
by Arthur Sillers
Substratum is performing well on the market, but rumors abound it is crashing

Cryptocoin Substratum is a high performing altcoin and the company behind it is unveiling a second ICO, but rumblings are gathering that it may be a scam at worst, or a knowingly failing product at best.

Substratum, a cryptocoin which is attempting to build decentralized web infrastructure, saw an 80% growth over the week which ended August 25th according to Hacked, making it one of the top performing altcoins.
On September 7th, Substratum launched a second ICO to fund its third major product, a decentralized exchange called Amplify.

Their first ICO landed them almost $14 million, which has led some to question why they need more money, and why they haven’t launched a viable product.

Brian Li wrote a post on his blog Decrypto which looked in depth into Substratum’s behavior, design, and goals, detailing why Li believes that the project is currently crashing and burning.

One of his main pieces of evidence is funded with the company’s second public ICO, an ICO which notably does not accept Substratum’s native token.

Li points out that if Substratum was close to developing its first two products, it wouldn’t need to gather more money to attempt to capitalize on a completely new market. Furthermore, Li points out that the market that Amplify DEX is entering, the still developing decentralized exchange marketplace, is intensely competitive. Li believes that this is a direct strategy on the part of Substratum, which he claims is leveraging the fact that a decentralized exchange specifically ‘has is a high chance of failure and no one will question you if it doesn’t succeed.’

Furthermore, Li points out the particular fact that the ICO to fund Amplify does not accept Substratum’s token SUB, but instead only accepts ETH and BTC. Additionally, the ICO is public, and not solely soliciting investment funds.

Li contends that this signals Substratum’s lack of confidence in their own products and original token, and amounts to an attempt to galvanize public support through an influx of capital, and then using that windfall to prop up the products which were already in development. Li believes furthermore that Substratum made the ICO public because they don’t believe ‘educated investors’ will want to invest.

Li, in his post, brings up a reasoned possibility that the company might be in a tight development spot. Others have gone further, taking to Reddit and Youtube to double down on theories that Substratum is failing, is desperate to prop up its technology until it can get it functional, or perhaps even is an elaborate scam by its ‘former cat burglar’ CEO.

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Is Substratum's second ICO a sign it is a scam, or failing to become viable?

(34 votes)

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I am from Wall Street - I have been and around Wall Street and Fin-Tech since 1987 -

To add a product such as an exchange with important differentiators that will enhance 2 other “sister” companies products is called vertical integration. It is time tested - smart - and mutually beneficial for all. I’ve just started following this industry recently but this is my opinion:

There seem to be a lot of “experts “ out there giving financial and business analysis that have no background or basis for giving it. In my world these people who are representing themselves as experts would fall under the heavy scrutiny of FINRA.

Institutional money is interested in projects like this and in CEOs and Founders that have the vision to see beyond “saving the world” and look at the real need for revenue and profitability. If you can accomplish both - hats off! That’s what this founder seems to be doing.

How do I know this? Because I am a part of the institutional finance community so many of you seem to be looking to attract.

I hope the “unprofessional “ people who currently proliferate this vertical are all systematically run off by the community and can go back to painting houses or bagging groceries or whatever they did before becoming self proclaimed experts.
06 Sep, 2018 - 16:06

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