Surfing the internet, I found hot discussions on Reddit regarding the Micromoney project. The information published there was rather contradictory to those published in the press release by the company itself. So let`s conduct an analysis of the company.
According to public information, Micromoney was founded by Anton Dzyatkovsky, Sai Hnin Aung and Tetsuya Mori and registered in Seychelles. The company aims to provide individuals who have never had bank accounts with a credit history, allowing them to eventually become bank customers. As it is said in the whitepaper, the company`s mission in the long-run is to help 2 billion unbanked people to build a multi-purpose digital identity, creditworthiness, and financial reputation.
According to official information, the company was established as a microfinance institution in 2015, providing individual and SME`s with short-term loans and “has sharpened the business to become a decentralized Open Source Credit & Big Data Bureau on the Blockchain”. The company had an ICO on October 2017 and Anton Dzyatkovsky claimed to raise more than $5 million. AMM token is an ERC20 Ethereum token with a total supply of 17,532,943 and a circulating supply of 10,475,096.
All this information sounds pretty lucrative and encouraging to invest in the token, why then, did negative comments emerge. Is Micromoney a fraud?
Disconcertingly, AMM token has very low volume on the exchanges now, it`s current volume is close to $2 million. MicroMoney’s chart on CoinMarketCap and CoinGecko show that it has actually already seen a steep decline. For a month, MicroMoney (AMM) tokens went down -60.29%. For 100 days AMM is down -84.11% to 0, $0.2173. It`s pretty a dramatic fall. Quick value lost may mean a fraudulent behaviour. What`s interesting is that “citizens/residents from America, Canada and Singapore cannot buy this token as per the country’s regulations”.
The bloggers on reddit, e27 and on other sources leave in serious doubt the whole company`s mission. They are not sure that a high profile bank is going to accept customers whose credit history comes solely from AMM tokens. The credit score which MicroMoney provides its customers with, is based on their own proprietary assessment, meaning that it may not be accepted by other industries. Just because they assume a credit score for a customer it does not mean that a bank will assume the same score. The credit rating industry is already notoriously hard for a business to break into and make a profit from.
What makes me really worry is that the company`s office even though officially announced as a Singapore –based company, it is registered offshore on a small island where government policies let you transfer any amount of money without any regulations and auditing. If you do a bit of research, you will see their office address on their site, and that address is common for many companies who have registration on that island. So it really put me on guard, at the end of the day any investment is a personal decision and the responsibility lies in your own hands, just be aware.
Author – Aaron Dempsey, writer and journalist with a focus on desruptive technologies. Expert on finance and cryptocurrency projects investigator.
