In what is turning out to be one of the more outlandish scenarios, Korean police have now raided the offices of the Shinil Group. The story up until this point is an interesting one.
Chapter One – A Brief History
Built in the 1880’s, Russian frigate, ‘Dmitrii Donskoi,’ found itself enroute to the North Sea roughly 20yrs into its life. In 1905, after surviving various bouts of combat throughout the years prior, the Dmitrii Donskoi was sunk. Upon sinking it was said to have been carrying upwards of 1/10th of the worlds gold supply.
Chapter Two – A Time of Rest
Resting untouched for nearly 100 years, the ship is said to have been found multiple times by various outfits beginning in 2001. Despite being found not far from South Korea, no efforts had ensued to retrieve the gold that lay below. Only now, in 2018, is a South Korean firm known as the Shinil Group going to attempt to retrieve the treasure that the ship holds.
Chapter Three – Enter Crypto
This is where the world of crypto enters the fray. In an attempt to fund their venture, the Shinil Group has decided to host an ICO. Their intentions are to both fund the venture of retrieving the gold, and to create a stable cryptocurrency that will be backed by the riches aboard the Dmitrii Donskoi.
With current valuations of the gold sitting around $130 billion USD, this is quite the find. As the old adage goes, ‘if it seems too good to be true, it most likely is’. Despite this, the ICO has garnered the attention of many, and is thought to have raised a substantial amount of money thus far. Estimates range around between $50-55 million USD.
Chapter Four – Skepticism Abound
Obviously, with such a grandiose claim and clear investor interest, the South Korean authorities have kept a close eye on the crowd sale. It has now come to light that the treasure might not exist. The Shinil Group have now retracted their statement stating the discovery of the gold. They have now admitted that they have no idea if the gold remains onboard the ship. With this development, the South Korean authorities acted, believing the Shinil Group to actively be taking part in fraud. As reported by the Korea Herald, authorities raid various locations operated by the Shinil Group. They have also gone as far as prohibiting its operators from leaving the country.
Chapter Five – An Unhappy Ending
Time will tell whether the Shinil Group is trustworthy. Until then it remains unknown if the treasure even exists. This unfolding story serves as a warning tale to those looking to participate in an ICO. Although they have their place, and can prove to be very lucrative, they are as risky as an investment can be. Investors must be wary of bold claims, and do their due diligence on those making such claims. It is when these steps are not taken that people get burned in what is not really an investment, but a gamble.