Bee Token was a cryptocurrency that was to be released in 2018 with an ICO in 2017. Unfortunately, the project disappeared in 2019. No one has heard anything from the developers and the project is officially dead at this point.
This article will cover what exactly happened to the project. We will also discuss how you can avoid falling for the same thing with other projects.
Bee Token – A Brief History
Bee Token was launched in Q4 2017 with an ICO. The ICO raised an unspecified amount of money (information is difficult to find). It was most likely a large ICO because Bee Token was extremely hyped.
The project was attempting to become a decentralized AirBNB. Of course, Bee Token was a scam from the beginning. But a “decentralized AirBNB” was interesting enough to attract a large amount of investors and investor money.
Bee Token Disappears
Cracks started appearing almost immediately after the ICO. The first crack was a hack during the ICO itself. The hacker diverted funds from the ICO into their own Ethereum wallet. In hindsight, this hack may have been the development team attempting to divert funds directly to their wallet.
But most of the problems began in 2018. First it was with users complaining about getting banned from the Telegram channel. Eventually, the Telegram was deleted.
The project officially folded in 2019. The Bee Token has a Facebook post claiming that the company folded because users were more interested in investing in cryptocurrency than actually using it.
Is this the case?
Possibly, but the team was so poor at managing the project that it appears it was an actual scam.
What Can I Do If I Lost Money With The Bee Token?
If you invested in The Bee Token and lost money, then you can take part in a potential class action suit against the company. You can fill out your information here
However, the class action suit only has 170 members, so it appears unlikely that funds will be returned. You should just chalk this up as an expensive lesson if you lost money to The Bee Token.
How To Avoid Crypto ICO Scams
Avoiding crypto scams is really not that difficult. Granted, there are a lot of scams, but this section will cover some pointers to avoid most of the scams.
- Thoroughly investigate the team. Make sure to do your due diligence on the team behind a cryptocurrency. You also want to avoid anonymous teams or teams that lack any experience.
- Is a token even necessary? Next, you want to objectively think if a token is even necessary for a project. Most crypto scams involve coins that do not really have much use.
- Big promises are a problem. Finally, a project that makes big promises usually does so in order to attract a large amount of investors into it.
Well, that sums it up for The Bee Token. It was nothing more than an overhyped scam coin from the height of the ICO craze in 2017. The ICO craze of 2017 taught us a lesson in not falling for hyped up cryptocurrency projects.
The good news is that there is a potential for a class action lawsuit against the founders of Bee Token. The bad news being that a class action lawsuit seems unlikely to move forward due to the small number of class members. Collecting the ICO might also prove difficult because the founders do not appear to be based in the United States.