1/ As we wrote in the last issue of Diar, the exit scams only account for a small percentage of the total amount raised through ICOs. The far larger issue are ICOs that raised millions and are slowly siphoning money away with no products in sight.
2/ They are paying employees six digit salaries, flying first class and traveling the world to attend countless of crypto “decentralized” conferences (see @julianhosp). The worst part is that they have literally no obligation to disclose their financials.
3/ Remember, people bought access to a platform, not equity. The founders’ incentives to actually build a valuable company are very limited because there is no contractual obligation to deliver a product.
4/ Less than a handful of projects have gone live and the ones that have gone live have seen very limited use. Top price of top 10 ICOs fell by 93% on average from their all time highs erasing $22.3 billion from the market cap.
5/ There are literally countless of examples of projects just burning through the money and delaying their roadmaps by several months/years but I will mention some that are getting on my nerves the most.
6/ TenX is probably the worst. They raised $80Mn in June. After Visa ended a relationship with WaveCrest (card issuer) in January, they have had no product. For more than 7 months.
7/ They have been promising since November that they are working on obtaining a license to issue their own debit cards and that they are onboarding alternative card issuers with a target date of November.
8/ Mr Soon aka master of deceitful marketing (@julianhosp) keeps saying that the new cards are around the corner. He has been saying this since January and it’s always just few weeks away.
9/ We are still waiting and seeing. Whenever he is questioned he blames the regulations, VISA and pretty much anyone else but the TenX team. They all probably knew this would happen but it was easy to convince investors to pour in millions so why not.
10/ Another one is SALT Lending. The ICO structure can be seen below. The strategy also known as "dump everything on retail investors" worked beautifully in a bull market. Until it didn’t 
11/ As the price of token continued to tumble all the way to $1, SALT removed the option to pay the principal in the SALT token.
12/ The SALT token was fixed at retail price of $27.50 so many people used arbitrage and buy the token at market value (<$0.5) and then pay off the loan with the SALT tokens bought on exchanges.
13/ I emailed their CEO about this as soon as it happened. Two days later, it was announced that Bill Sinclair will serve as Interim President and CEO (blog.saltlending.com/salt-announces…). Shawn Owen must have not known he was being let go just two days prior. Great sign!
14/ These are just two examples but like I said, there are countless of others. And they have enough money to last for decades. I really think these "companies" should have more pressure put on them
