We are considering adding $Crowdestor to questionable platform list for following reasons:
- Selling 75% of equity: this looks like an elegant way of exiting/dumping project on not so smart investors, and with small shareholders owning all together more than 50%, making any decisions could become impossible. At the same time biggest fans and optimists who would now own shares of Crowdestor, might be less likely to join any legal action group.
- impossible Flex product: the promise "pull your money out whenever you want." is not realistic and even ignoring all the legal issues (Crowdestor would need to create a fund to manage investor money), if enough investors will want to withdraw money, Crowdestor will not have ability to fulfill this promise. If money is invested in real estate, forestry, energy projects etc., it cannot just be taken back within 1 day.
- 45% of projects are delayed, and in many cases promises about repayments are made, but not delivered, and no action is taken against borrowers, which signals - that either there is some conflict of interest, or there is a problem with collateral, or debt recovery process would end up with way less paid back than investors would expect.
- 2 frauds so far, which point to not enough control or due dilligence, and there are signs that possibly other projects might join the fraudulent project list
- Buyback fund was advertised in a misleading way, but it still is not activated. Will it happen ever?