The War On Shitcoins Episode 12: Atonomi (ATMI). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
The goal of Atonomi (ATMI) was to bring trust and security to the internet of things (IoT), via securing IoT devices with blockchain identity and reputation tracking. However, now investors and users are claiming that Atonomi (ATMI) is a scam and are reporting the company to Interpol and the FBI for gross mismanagement of funds. Atonomi (ATMI) has responded by closing down its Telegram channels, deleting Bitcointalk threads, and silencing its subreddit. One of the only places left for Atonomi (ATMI) victims to chat is a Telegram channel named Atonomi Scam Project.
In June 2018 the ICO raised $25 million at a price per Atonomi (ATMI) of $0.063. In July trading started at only half the ICO price, and since then the Atonomi (ATMI) market is following a downward curve similar to radioactive waste with a short half-life. Currently, Atonomi (ATMI) is trading at $0.000625, an astonishing 99 percent loss in value from the ICO price.
It gets worse. A former employee claims that a major layoff happened in October, a mere three months after the $25 million ICO. The company blamed the rapidly declining price of Ethereum (ETH) on the layoffs. The employee says Atonomi (ATMI) had to sell increasingly large amounts of Ethereum (ETH) to remain operational and it became a death spiral. This may be true to an extent.
The Co-Founder of Atonomi (ATMI), David Fragale, claims that Atonomi (ATMI) Founder Vaughan Emery wanted to use the ICO funds to bailout Centri, which was a failing company. In-fact, Centri and Atonomi (ATMI) shared an office from the beginning and this may have been the plan all along.
The founder was fired, but new CEO Robert Strickland went ahead and merged with Centri anyways, and ICO funds apparently were used to pay the 30 employees on the Centri payroll. Everyone with ties to Atonomi (ATMI) was apparently fired, and Fragale claims that there is no one left at Atonomi (ATMI) with blockchain skills.
Centri is not a crypto company, so this was effectively a bait and switch. Investors thought they were investing in Atonomi (ATMI), but then all the money was diverted to the non-crypto company Centri. This left Atonomi (ATMI) with no funds and no chance of making its original mission a reality.
The new CEO who essentially liquidated Atonomi (ATMI) also hired his sister and son and paid them with the Atonomi (ATMI) ICO funds, a particularly explicit act of corruption.
Ultimately, everyone who invested in Atonomi (ATMI) lost money. Anyone who HODLed til now lost their entire investment. This alone is enough of a reason to call Atonomi (ATMI) a scam. The evidence that the Atonomi (ATMI) ICO was simply a mechanism to raise money for the failing Centri confirms this.
ICOs like Atonomi (ATMI) are the reason the Securities and Exchange Commission (SEC) is becoming increasingly fierce towards ICOs. Atonomi (ATMI) brought forth a unique idea and had a good white paper but clearly had no intention of using the money to build the project.