Cryptoeats, a company that reportedly raised $ 8 million in a Series A funding round to create a crypto-based Ubereats alternative, vanished after its token was launched. According to estimations, the startup might have taken more than £500K from investors after the launch of its official token dubbed “eats.” The alleged scam was promoted by UK influencers and related clothing made, and even hosted a launch party in London.
Cryptoeats Initiative Vanishes After Token Launch
Cryptoeats, a company that proposed to build a crypto-based Ubereats alternative, vanished from the internet just minutes after launching its official token. The company, which had an official website and claimed to have raised funds to develop its proposal, said it had launched a public beta of the service, in partnership with food chains like Nando’s and McDonald’s.
Furthermore, the startup claimed it had already onboarded more than 100,000 customers, who have signed up to download the app and use it on launch day. But the developers of eats, the platform’s native token, have emptied the wallet containing the funds from the initial token sale, stealing more than £ 500,000 from investors, according to reports. Soon after, all of the startup’s social media accounts were gone, along with its website.
Cryptoeats Looked Legit
Cryptoeats worried about looking legitimate before disappearing. The company first outed a PR statement where it claimed it had raised $8 million in its series A funding round in 2020. The public relations statement, released on October 16, said the company was “Willing to take a big chunk of the $ 16.6 billion.” delivery application market. The statement was posted using Globenewswire and was posted on the Yahoo Finance website, but both references have now been removed.
At a local level, Cryptoeats also did its work bringing U.K. influencers to promote the new initiative among their fanbase. Joey Essex, a reality TV celebrity who promoted Cryptoeats, told local media he lamented the situation. Essex pointed out:
I’m fuming. This company used my name to dupe lots of people into investing money. It’s disgusting and I feel bad for anybody in that situation.
But Essex wasn’t the only local celebrity promoting Cryptoeats. Many other influencers attended a launch party last week in London, where Cryptoeats clothing was shown and worn by some of the assistants.
