Russian dark web marketplace Hydra says it is seeking nearly $150 million in bitcoin to continue its operations.
Hydra Is Looking to Become Global
The platform has announced an initial coin offering (ICO) set to begin next Monday on December 16. This is odd in the sense that most dark web marketplaces are looking to potentially hide or limit their presences, whereas an ICO with such a large goal is likely to let everyone in on the secret.
This, according to the Russian media, is a giveaway that Hydra is looking to invoke an exit scam. Thus, once it obtains the money it seeks, it will simply pack up its bags and exit the space, never to be seen again, while those who potentially invest will be left with empty pockets and bruised egos.
The media is warning citizens who are considering investing to think twice, though to be fair, it’s unclear how much weight this warning will hold. ICOs have gotten something of a bad rap over the years given that many have turned out to be phony or don’t produce the results companies are looking for. One of two things have been known to occur with ICOs: either the people behind them are fraudulent, or the company doesn’t raise the funds its needs to stay afloat.
In the former case, executives get all their money and provide users with a digital coin slated to give them access to the company’s goods and services. Sadly, once the ICO is over, the executives take all the money they’ve earned and move on, while its investors are left impoverished minus the now useless coins left in their wallets.
In the latter case, some companies seek to perform honest fundraising gigs but simply don’t get enough cash to keep things going. This happens often; several startups do not make it past their first six months, so while the hosting enterprises have every intention of working and giving back to society, their plans don’t come to fruition.
Despite these repeated instances, however, ICOs still weave their way into the crypto space, and many still find several individuals willing to fork out funds as a means of potentially striking digital riches in the future.
Can ICOs Be Trusted?
Hydra says it will use the money it garners through the ICO to become a global company. It also says that approximately 1.47 million tokens will be sold, and that nearly 50 percent of company control will be given to the public.
Hydra says it’s also looking to release Eternos, an anonymous Tor-like browser that will include an encrypted messaging system and a crypto exchange.