IOST Team finally releases a disclaimer taking a stand on IOST ROI.
Following the release of an OPEN LETTER TO THE IOST COMMUNITY by our team (IOST Watch), the IOST team released a disclaimer ultimately stating their position on the new dApp. IOST ROI, a new dApp on the fast growing IOST Blockchain, showed all signs of being a Ponzi scheme. Even on their official site, the creators confirmed this by stating that they would continue to accept and pay out money until there is no money left in the system.
The essence of ROI dApp is to inject the user into the smart contract IOST (which can be understood as the investment in the dApp), and return to the user a certain percentage of IOST at regular intervals based on the rate of return.Ordinary ROI dApp return is fixed, iostroi return is 5% per day, but the return time is limited, if the return time is infinite, this setting is destined to this is a very short life cycle of the game, once the growth rate can not be maintained for more than a day, the game will gradually to death.Translation of IOST ROI page
This, among other things, raises a red flag for community members as stated in the Open Letter.
With news spreading through its Telegram Channel, the IOST Team acted quickly and attached a disclaimer to the dApp. IOST agreed to attach a similar disclaimer in future games posing as gambling dApps but actually operating as full blown Ponzi schemes.
Thanks Jim – and for the clarity of all international members – IOST ROI is not endorsed by the Foundation in any way.IOST Telegram Admin (@Lawrencelhz)
We had commented that a new dApp was built on IOST, and I think going forward we will have a very clear disclaimer that we are not responsible for these games. Similar to Ethereum we will have devs building dApps on IOST, which we can’t control.
While we would still like to share with the community as part of a dApps discovery process, we will provide an extremely clear disclaimer and non-association, hence will be for users to try at their own risk, and avoid if uncomfortable.
And if there are any red flags do let us know, we will specifically warn the community on any unethical devs / projects against using these dApps (once verified).
He went further:
Thanks everyone for the discussion. Perhaps I’ll help to round off the topic.IOST Telegram Admin (@Lawrencelhz)
as a public blockchain we can’t stop people from building on IOST. If we can shut them down, then it is no longer a decentralized, public blockchain. Transaction processing are done by the nodes, so to stop a particular project and not process the transactions, the nodes need to collude (see where this is heading haha).
While we can’t stop apps from being built on IOST, going forward we will alert the community on high risk projects like IOST ROI, at least that part we can do. And for the community itself to pls also help fellow members safeguard against high risk projects.
Look at the Telegram airdrop scam, that’s still ongoing on a centralized platform anyway, and still continues despite our multiple attempts to report a scam to Telegram..
And Ponzis still continue to this day, using fiat. So it’s really an issue with the world. Bad actors are present in all systems.
In this situation, what the Foundation can do, is to help the community be aware of these issues and where possible, issue alerts to flag high risk projects. And for the community to share and keep its members safe (that’s why we are all here in this group!).
Update: We will have a very clear disclaimer going forward on all Dapps shared with the community if we have not done any due diligence on them. Dapp discovery can still proceed in a safe way for the IOST community. Specifically on the IOST ROI article, we have inserted a high risk warning for the community.
The IOST Team went one step further by removing the tweet made earlier about the emergence of the new dApp on the its blockchain. It also updated the details of the announcement in its medium post: NEW DAPP FOUND ON IOST
We want to thank the IOST Team for making their position clear. We also call on all community members to be careful and do due diligence on any dApp they are planning to invest or put their money in.
IOST Watch is also working to educate the public and expose more projects like this when