$Crowdestor has published a campaign that sells crypto tokens, related to Dystopia project. No information provided when IDO will take place.

CROWDESTOR investor community is offered to purchase ZEUM tokens for €0.02652 (0.0313 USD)*, while the token price at the Initial Dex Offering (IDO) will be set at 0.05 USD. This offer puts the CROWDESTOR community at an advantage over other retail investors, as the majority will be able to enter only at the IDO stage and purchase the ZEUM tokens at a much higher price. The minimum investment is 500 EUR, and in this round 1, 885 369 tokens are available at a total value of 50 000 EUR. A Token Lockup will be implemented for six months in order to avoid the price drop after the IDO.

*USDC gas fee (transaction) fee is not included in the investment and has to be paid by the investor.

The transaction will be implemented through a Czech company, “Fidelity Alliance” registration number 05366011, which has a cryptocurrency exchange license, allowing CROWDESTOR investors with significantly smaller financial participation to take part in this project and acquire tokens in a Private Round.

After the unlock period, tokens will be stored in a wallet controlled by CROWDESTOR. The investor can claim Utility Tokens once per month till the 15th. date. Utility Tokens will be delivered to the Investor`s virtual wallet by the 15th—date of the next month. The Investor undertakes to pay all expenses related to the transaction of the financial instrument.

Artūrs Geisari continues to mess with $Crowdestor? SIA Elmets raised €62 658 from $Crowdestor, campaign finished on 08.08.2021

From Crowdestor campaign description about guarantees: "Commercial pledge on 50% of the Borrowers shares" - no such pledge is registered, but instead on 09.08.2021 a pledge was registered to Koronada SIA.

SIA Elmets also has a tax debt of €6213 and 94.9754% of SIA Elments is owned by SIA GST 51,
5.0246% is owned by Edgars Cers and there is lien registered on 09.08.2019 on Edgars shares from VID (Latvian tax authority).

Also interesting that when campaign was placed on Crowdestor, GST 51 had only 2 owners:
- Vladimirs Gasperovičs 50%
- Tauriņš Ritvars 50%

But only 4 days after campaign finished, on 12.08.2021 ownership was changed, and 50% of company was given away to 2 new shareholders:
- Artūrs Geisari 25%
- Iļja Sitovs 25%

Both Artūrs and Iļja are also partners at SIA Nordic Food - company that is selling magic water: be-more.eu - maybe targeting the same audience that invests in Crowdestor?

Of course, there was no mention of Artūrs Geisari in the campaign description and also no mention that Artūrs previously was part of Crowdestor team, and managed Crowdestor SME SIA - company that developed product to automatically score and issue loans to SMEs.

It will be interesting to see if the money borrowed will be paid back, but if we look at history and take into account following:
1. Artūrs Geisari was head of Monify, borrowed lot of money from different platforms to lend out and created a bad quality portfolio. Company failed, and it is rumoured that investors will lose about € 2 million.
2. Artūrs Geisari was leading Crowdestor SME automation product development, but after internal conflict left Crowdestor with lot of money burned, a product not used and a tax debt of €170k.
3. Crowdestor has not learned from it's mistakes and still is not registering pledges, just writing false claims in project descriptions.

My guess - this will be another problematic case where money is basically donated.

Interview with Janis Timma, CEO of $Crowdestor - Part 3

00:00 Crowdestor Flex - why was it hidden?
05:50 Does lending company that raises capital, needs a license?
07:05 Why are Flex portfolio companies hidden from investors?
08:05 How much money was raised from ticket sales?
09:06 Would you be able to repay equity loans without ticket project?
11:05 Ticket sales are hidden, what happened?
11:50 Where would you like to move Crowdestor company?
12:14 Which regulators have issues with Flex and tickets?
12:48 Can a regulator ask to refund ticket sales?
14:10 Would you be able to spend 800k to solve urgent issues?
15:01 Should platform get their fee when loan is repaid?
15:30 Ticket project description
17:55 What will happen with money raised from remaining ticket sales?
19:05 Will ticket money be used straight away?
19:40 Investors are buying tickets to repay their own loans?
22:20 How many people work for Crowdestor?
23:10 Monthly burn rate?
23:30 Funded volume
24:30 Average fees, cash flow
25:34 How big are Crowdestor reserves?
26:40 Poll about legal action against Crowdestor
27:26 What is happening with big projects?
29:08 Why is Fertilizer not counted as capital loss in stats?
29:30 What happened with Buyback (Provision) Fund?
32:47 Should not Buyback be triggered when loan is in default?
33:35 Can you prove this 400k fund exists?
35:25 Why withdrawals are marked as refunds?
36:53 Georgian loan portfolios
38:15 Vormsate castle, Medical centre Aizupe
41:01 Any steps taken to become regulated?
41:58 Is there a risk to freeze operations or shut down?
42:39 Current business model is not working?

Watch it here: youtu.be/CTTQjVH7xys

Previous parts of interview:

Interview with Janis Timma, CEO of $Crowdestor - Part 2

00:00 Promise about strict policy, no-mercy to borrowers
06:15 Grocery store - 17 months late, still not defaulted?
10:00 Connected projects - conflict of interest, debt recovery
16:10 Delivering updates each month
17:00 Commissions paid in cash?
18:25 7.6% of projects are in recovery, any results so far?
19:35 Organika case
21:43 Projects with no hard assets to sell
25:10 Warhunt movie - still looking for buyer?
26:58 Would you agree to external audit of portfolio?
28:35 Are some of objects very bad?
30:57 Can Inch2 be defaulted?
32:35 How many criminal cases so far?
33:15 70-80% discounts in secondary market
36:35 Crowdestor Flex - why was it started?

Watch it here: youtu.be/p84hS9fYqBM

Interview with Janis Timma, CEO of $Crowdestor - Part 1

00:45 Dižozols - how it started?
04:00 What are other successful projects on Crowdestor?
06:00 Who are Crowdestor co-founders?
07:55 Changes in Crowdestor Security Agent ownership
08:23 Lending automation to SMEs - what happened to this project?
12:27 Why did Artur Geisari left Crowdestor?
13:10 Marketing - 15y of experience, debt recovery - first job?
14:52 Real Estate projects - does anyone have experience with RE development?
19:50 What are other projects connected to Janis or Gunars?
20:40 Exiting connected projects
22:46 Crowdestor Security Agent OU - no reports, is it empty?
24:19 Crowdestor SME SIA - tax debt of 142k EUR?
25:45 Pledges registered with Crowdestor Security Agent SIA
30:50 Meža Enerģija list of assets - where is it?
31:40 General view on Meža Enerģija
33:10 What is the point, where you stop waiting?
34:40 Inch2 - what happened?
38:12 Orange Square Transport - Janis had 100% control?
41:50 Dystopia user acquisition campaigns - why are they late?

Watch it here: youtu.be/t5SowpBI5QM

$Crowdestor has removed their ticket (equity) campaigns from their public site (when investors are not logged in). And based on location or investor status Crowdestor also presents info to logged in investors in a different way:

1. For some investors, who log in - ticket campaigns are hidden (not shown even in funded section)
2. For some investors, who log in - they see ticket campaigns only in funded section
3. For some investors, who log in - they still have ability to acquire tickets

Very likely that $Crowdestor is getting pressure from FKTK (Latvian regulator), Finantsinspektsioon (Estonian regulator) or both.

Will be interesting to see how situation develops later, but it could be likely that Crowdestor is asked to return money to all ticket buyers and shut down this ticket idea, same as #Flex.

$Crowdestor announced that all investors from DIZOZOLS projects received the final payment!

The total amount of 2.77M EUR was raised in 6 fundraising rounds from 3509 investors representing 69 countries. In total 3.46M EUR has been repaid to investors, including the success fee.

How is it going with other projects of same borrowers?

- AS Juno (previous name: AS "Dižozols mežu fonds")
Payment status: current

- Nomo LLC
Payment status: In recovery

- SIA Beetroot Lab

11 rounds of financing, total amount: 4.2 million EUR
1 round is repaid: 216k, 1 is current, all other 9 rounds are delayed

Money at risk: ~4 million EUR + interest + delay fees

What about Crowdestor promises?

Any game can fail, but all user acquisition campaigns for Dystopia were marketed as "risk-free transactions". So why are they not paid back? And why are app store statistics not shared every 2 weeks?

"CROWDERSTOR will have access to all store Beetroot Lab LLC store to be sure that only when there is revenue generated by the game already on the store - CROWDESTOR will make the 80% transfers making those a risk-free tranzations. Once in 45-60 days when stores are transferring the generated funds to Beetroot Lab LLC - funds will be transferred to Beetroot Lab LLC and CROWDESTOR co-controlled bank account and immediately the oldest loan of CROWDESTOR will be re-paid."

"CROWDERSTOR has access to all Beetroot Lab LLC mobile app stores to follow the number of downloads and revenue generated by the game. CROWDESTOR will share this information with investors on a regular basis - every 2 weeks."

Also - it was promised in an update that Dystopia will be repaid, but nothing has happened so far:

The Borrower has informed us that it is currently working on finalizing the repayment. We will update investors once the Borrower has informed us about any other news on this project."


Funds from Dizozols Investments were paid back, but same borrowers still have 3 unpaid projects:
1. Juno: loan is current so far, 500k EUR
2. Nomo: 1.15 million EUR in recovery
3. Dystopia: 4+ million EUR at risk, finalizing the repayment for almost a month. Does not look good.

UPDATE: according to Janis current outstanding amounts are lower, all loans have partly been repaid:
1. Juno: ~300k outstanding
2. Nomo: ~800k outstanding
3. Dystopia: ~2.5 million outstanding
Total: ~3.6 million EUR outstanding

According to $Crowdestor borowers from Fertilizer project acted in a fraudulent way, have not repaid the loan and criminal process is initiated.

In total 1.9 million EUR were raised in 3 rounds:

Promised guarantees:
The Loan and interest will be repaid from Guaranteed income that is secured by Letter of Credit issued by bank registered in Paris. The income from export is received when product loaded on-board vessel and export documents handed over to the bank for Letter of Credit drawdown. The risk of Borrower and CROWDESTOR Investors ends when product loaded at the export port and vessel freight paid before cargo leave to end Client – from Port Liepaja, Latvia or Riga, Latvia.

1) Crowdestor is holding collateral title on the goods purchased by funds from Crowdestor investors till the cargo is loaded on board vessel and exported.

2) 100% of Crowdestor investors funds and interest is secured by Assignation from the Proceeds of the incoming Letter of Credit draw down funds. The bank will pay out automatically the assigned amount to cover the principal and interests of Crowdestor loan without hitting Borrowers account. This assignation is irrevocable.

Obviously promises & guarantees did not help in this case and it is not clear if anything will be recovered.

But it is interesting that at the same time - the main guy behind the project, Girts Celajs, is featured in largest Latvian news site delfi.lv as a successful businessman:

Although the world was taken over by a pandemic last year, SIA "Blendex" (JSC "Fertilizer Group company"), an exporter of soil supplements and an agricultural consultant, closed 2020 very successfully - with a turnover of 10.889 million euros and a net profit of 1.6 million euros, reports company.

Ģirts Cēlājs, the head of the group of companies, comments that the turnover of SIA "Blendex", compared to the previous year, has grown by more than 2000% or 20 times. Such results can be explained both by the determined work of the company's team in exploring new export markets in Ukraine, Sweden and Guinea, as well as by a more active focus on the development of soil maps.

$Crowdestor announced Flex product on July 22, 2021 and not even a month has passed, and it is removed from Crowdestor public page, but is still visible for some investors (not all), who log in with following message:

"Currently, new CROWDESTOR FLEX investments are not accepted due to more active interest than expected. We are working on portfolio diversification, and you will be informed once new investments are accepted."

This is how it was advertised:

"CRODWDESTOR FLEX is a new investment product on the CROWDESTOR platform. It offers a fixed 12% p.a. interest rate paid daily and a convenient GOALS feature to organize and track investments. The key difference between FLEX and other investment opportunities on CROWDESTOR is high liquidity - investors can withdraw money at any time. There are no fees for CROWDESTOR FLEX, except 1 EUR commission for every transaction from FLEX to your CROWDESTOR Wallet.

FLEX was created to solve two main challenges related to investing in business loans:

- The complexity of the underlying asset - CROWDESTOR FLEX does due diligence and ensures a high diversification level of allocated funds.
- Irregular cash flow - CROWDESTOR FLEX enables you to receive interest payments daily and pull your money out whenever you want.

The simplicity and ease of use make FLEX a great option for beginner investors as there is no need to analyze the projects on offer and the returns are easily trackable in the GOALS section. On the other hand, veteran investors will find FLEX useful as a diversification tool and while waiting for the next big investment opportunity on the CROWDESTOR platform. Both veterans and beginners will benefit from flexible terms, predictable cash flow, and quick and easy withdrawals.

There’s a portfolio of well-established businesses generating steady cash flow at the core of CROWDESTOR FLEX. Most projects operate in well-established sectors like energy, forestry, trading, finance, manufacturing, and municipal services. Investing in CROWDESTOR FLEX provides exposure to all of the projects in the portfolio, thus diversifying the investment and decreasing the risk level.

CROWDESTOR FLEX is secured by a 10-20% liquidity reserve, which will be adjusted according to investment patterns. The reserve ensures uninterrupted withdrawals from FLEX. "

Estonian news site Aripaev has published an article about $Crowdestor.

Key highlights:

Flex service does not comply with the EU regulation:
The Latvian Financial Supervision Authority considers that Crowdestor should not provide such a service without the authorization of an investment firm. At the same time, it is stated that Crowdestor is an Estonian company and thus belongs to the administrative area of ​​the Estonian Financial Supervision Authority. Nevertheless, the Latvian Financial Supervision Authority has promised to contact the Crowdestor team to discuss the nuances of the Flex service.
In fact, all automated services where the platform makes decisions on behalf of the investor are also banned by the European Union's co-financing regulation, which will enter into force on 10 November. This means that if Crowdestor wants to apply for a co-financing license in Estonia, Latvia or another EU member state, the Flex service should not be in their portfolio.

Same group of politicians may be behind Crowdestor as Envestio:
The opinion has emerged that behind Crowdestor as well as other failed Estonian-Latvian co-financing platforms is the same group of politicians who try to earn easy income from the mass of dispersed small investors. This hypothesis was confirmed by an article published by the journalist Goldbergs last month, where he described how the money lost by the bottom of the Envestio co-financing in early 2020 could end up on the Crowdestor portal. According to Goldbergs, Galvanovskis and his friends from the Latvian Reform Party may have been behind the movement of money, and Crowdestor and Envesto are most united by Martins Tenbergs, an entrepreneur called the gray cardinal of the Reform Party. He lent money for his real estate projects on the Envestio platform and has borrowed from Galowovskis and Karlis Gudonis from the Crowdestor portal through the party's ties. Thus, there is a strong possibility that the money "saved" from Envestio has reached the project of Galvanovskis, a friend of Tenbergs, through Exante.

Police rumours:
Rumors are spreading that the police are also interested in Crowdestor. One investor has said that, to his knowledge, the Estonian police visited Latvia last week to investigate possible connections between Envestio and Crowdestor.
However, this is an unofficial statement, because according to the Police and Border Guard Board, no proceedings have been initiated against Crowdestor OÜ.