Do you remember Sandcoin?
It was one of the more absurd cryptocurrency ICOs of 2017. Unfortunately, Sandcoin fell flat when it came to execution. And the coin is currently dead with no trading volume and circulating supply of Sandcoin.
This article will cover what happened to this ill-fated cryptocurrency. We’ll also cover how to avoid losing money in ICOs similar to Sandcoin because Sandcoin will not be the last absurd cryptocurrency to cost investors millions.
What was Sandcoin?
Sandcoin was a cryptocurrency that had their ICO in 2017. The concept behind Sandcoin was interesting.
Basically, Sandcoin owned a facility with 3.4 million cubic meters of sand.
It wasn’t just any sand, though. It was high-quality sand meant for industrial purposes or construction purposes.
Now, the plan was that 1 Sandcoin would equal 1 cubic meter of this sand. The price offered in the ICO was $0.95-$1.35 per Sandcoin. The price of 1 cubic meter of sand was around $5 at the time, so this idea doesn’t sound nearly as absurd as it did at first glance.
As for the facility, it would be turned into a fish farm when Sandcoin sold all the sand. They expected to sell all the sand in about 15 years.
What went wrong with Sandcoin?
Sandcoin ran into problems immediately after the ICO was completed. In fact, the problems were not brought up until almost one year after the ICO was completed.
An unusually long amount of time for a company to not issue a statement after an ICO. Many experts figured that Sandcoin was dead because of the lack of any statement.
In 2018, a statement was issued. The problems arose from competitors and alleged extortion attempts. Of course, the cryptocurrency market had completely collapsed in on itself at that point in 2018.
Sandcoin was doomed to start from the beginning simply due to the timing.
The last statement by the CEO was in December of 2018. He stated that the project was not going well.
It stands to reason that the coin is dead due to the complete lack of any updates by the company.
Who founded Sandcoin?
Sandcoin was founded by a Russian entrepreneur named Ruslan Pichugin.
Did Sandcoin investors get their money back?
No. Sandcoin investors did not get their money back.
Was Sandcoin a scam?
The jury is still out on whether Sandcoin was a scam or not. If it was real, then the execution was terrible and the coin had virtually no chance of success.
Can I get money back I lost investing in Sandcoin?
No. It’s impossible to get any money back that you invested in Sandcoin.
Remember, blockchain transactions are not reversible once they post to the blockchain.
How To Avoid Losing Money in Cryptocurrency ICOs
Here are some of our top tips to avoid losing money in cryptocurrency ICOs.
Read The Whitepaper
First of all, make sure to read the whitepaper before investing in an ICO. News articles and press releases do not count, either.
Those are often created by the team behind the ICO, and will often hype the ICO. Reading the whitepaper will tell you all you need to know about the coin.
Do the projections sound realistic? Does the concept sound like it will work?
In the case of Sandcoin, the projections were not realistic. And the concept is so absurd that it sounds like a joke.
Research The Development Team
You should research the development before investing in an ICO. In the case of Ruslan Pichugin, he does not have much information on the internet.
This could be because he is Russian and much of the information is in Russian. However, it’s still a bad sign if the CEO has a very limited internet profile.
The most successful ICOs will have a development team that is fairly high profile within the cryptocurrency world.
Be Wary of Russian and Chinese ICOs
You should be wary of Russian and Chinese ICOs.
Most ICO scams seem to originate in Russia and China.
Does this mean that every Russian and Chinese based ICO is a scam or bad investment?
Of course not. It’s just a red flag for a potential exit scam.
Is It Too Good To Be True?
This one is obvious. If the promises in the whitepaper are too good to be true, then those promises are probably too good to be true.
That’s just how things tend to work out.
Sandcoin certainly had promises that were a little too good to be true. For one, they were selling one cubic meter of sand at about $1 per cubic meter.
The price of sand was close to $5.
Those numbers don’t make much sense. In fact, they are a little too good to be true or realistic.