Crowd funding is an amazing thing. It allows those with ideas but without the means to create and build a new company that otherwise would not be possible. Sites like Kickstarter and Indiegogo has paved the way for investors looking to turn entrepreneur. But it seems that these sites have also paved the way for fraud. Investors and backers of the Kreyos smartwatch recently discovered that the campaign they thought they were contributing to turned out to be a sham.
On paper the watch seemed like a great, realistic project for techies to get behind. It promised to be waterproof and voice activated, as well as offering similar features available on other smart watches.
The original crowd funding goal was $100,000, which was quickly hit and ballooned to $1.5 million. With that type of money backers expected to be wowed. But instead of receiving the watch pictured on the campaign, investors received watches months late that were nothing more than plastic junk.
Meanwhile Android Police reported that one of Kreyos’ co-founders, Steve Tan, had posted photos on his Facebook of a new Ferrari as well as bags and bags of designer clothes. The pictures were later taken down along with a slew of other pictures linking Tan to potential fraud.
Backers have overwhelmed the company’s Facebook page as well as its crowdfunding page protesting over the products they received. Though the comments are constantly removed, admins can not keep up with the onslaught.
rushhourdaily.com! Tech spoke with Indiegogo co-founder Slava Rubin, who explained that Indiegogo does not monitor the campaigns held on its website as closely as other fundraising sites. Kickstarter, for example, will deny the right to carry a campaign if they do not like it.
Pando’s James Robinson has been adamant about these “scampaigns” are happening to frequently and bringing in too much cash, sometimes amounting in the millions. Especially when Indiegogo goes out of its way to clear themselves of any potential problems pertaining just this scenario. Though it might be too late for the Kreyos backers, its a problem that needs addressing.
Featured image via facebook/Kreyos
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