DefiGroups Review: A warning From FINMA

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A warning is already out regarding DefiGroups; FINMA is the regulator that issued the alert. And this means Defi Groups is an unregulated entity. Despite claiming to have a Token sale event, it’s all a sham to defraud unsuspecting investors. We have gone through their terms, and they don’t look favorable. All liability falls on the investor, making it a risky platform. Learn more in our exclusive DEFIGROUPS REVIEW.

What made FINMA add Defigroups.com to their blacklist? 

A Closer look at DefiGroups

DefiGroups Review

DefiGroups is a platform where users can buy and sell shares using the Defi Group Token. According to the platform, they are revolutionizing how you can sell shares using Blockchain technology. 

Adaptive Smart Contracts is what the platform brings to the table. Apart from their eye for detail, the overall idea seems feasible. The only issue is that there’s no way we can trust a platform with no registration.

Ideally, the platform wants investors to buy their tokens as a store of value for selling shares. But, unfortunately, DeFi Groups fails to mention how they plan to safeguard the interests of investors. And this is why FINMA raised the red flag.

Instead of using such unreliable ways of investing, why don’t you choose proven means? For example, you can go for Coin Staking. DeFi, and Masternoding. These are the perfect options for an investor looking to get real ROI.

Defigroups.com is another platform with a great idea but wrong execution. Some clients have lost their entire investments with this platform. And the sad truth is, the platform does not even bother responding to calls and emails.

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All Token Sales Events of DefiGroups

Defi Groups only has one pre-sale event that comes with two stages. As we publish this post, their pre-sale event is slated for 5 July 2022. The event takes place for 10 days, and the platform offers a 30 percent bonus for the first 10 days.

That’s an incentive that will likely drive up more sign-ups but comes at a huge cost. The soft cap for the first sales event is $2 million with no hard cap listing. It seems the platform won’t put a cap on the maximum hard cap, which is unprofessional.

Sale Stage 1

The next sales event after the pre-sale is slated for 26th August 2022. It will take 15 days to accomplish and also offers a bonus of 30 percent. The soft cap for this event is estimated to be a maximum of $2 million.

There’s no hard cap listed on the second stage of the token sale.

Stage 2T

You get a 10 percent bonus, and the date for this sale is slated on 27th October 2022. The event will take place for 10 days. There’s an estimated hard cap of $3 million on this event. The total tokens for sale are 100,500,000.

According to their token metrics, the maximum circulating supply is 175 500,000. The reserve fund is 24 percent, with the team and advisors taking 15 percent. There’s also a 3 percent bounty program available for interested users.

DefiGroups Token Sale Event

Affiliate and Referral Program DefiGroups

For the referral program, the platform offers 5 percent on every investment made by the referred party. Now, this might drive you to convince your family and friends to buy more tokens. But, before you do so, there are some risks you should consider.

The platform fails to mention any burn features on the sales part. What happens if the goal is not met? The platform might not meet the set targets and can shut down at any time. With no information on who’s running the show, you will be left to blame.

At the end of the day, you end up losing more than just your friendship. Your reputation is on the line when you refer users to their platform. The reason we know this is because their documents fail to reveal who runs the platform.

Business holder

During an ICO or IDO event, the platform in question should have documents revealing team members. But, unfortunately, when you click on their OnePager, you don’t get to see team members. And this is the reason why we will have to stay away from the platform.

Those people offering these tokens remain anonymous. Nothing is stopping them from closing the shop once they receive FIAT for the tokens. It’s a risk an investor shouldn’t take as there’s no transparency.

Any anonymous investment platform should be ignored. It’s another reason why FINMA had to add the platform to their blacklist. Even the Swiss company register doesn’t have any company listed with their parent entity.

Freeeric Rutz Finance is the parent company that claims to own this platform. You should avoid any product or service belonging to this platform. What we have is an anonymous token sale event trying to take advantage of naive crypto investors.

Contact and support

Instead of providing users with direct access, you can only send a ticket. There’s an email address to use for this particular occasion. However, even the physical address they provide does not match the real situation on the ground.

There’s no direct link to the people using this platform, And this is why the people behind it don’t want any contact with their victims. Otherwise, the platform should list a phone number or offer live chat support.

DefiGroup License and Registration Features

Defigroups.com License and Registration

FIMNA was right to issue a warning in regards to using this platform. The platform does not offer the company’s registration documents. These are unregulated entities that offer tokens without going through the proper channels.

Regulators protect investors by issuing warnings about using such platforms. But, unfortunately, in more cases than one, naive investors will fail to see these warnings. And this is the reason why such reviews are in place.

Without a valid license to operate, it makes this platform a loose cannon. There’s no telling whether the second phase event will take place. With no mention of a hard cap or vesting period, we suspect many investors will lose funds.

The best decision you can make when investing is checking whether a platform is regulated. Without any compliance or oversight, this means we are dealing with a rogue platform. It would be best if you stayed away from it or risk losing your hard-earned capital.

Features, Pros, and Cons of DefiGroups

Partner support

Although the platform claims to have several partners under its wing, we can’t confirm. We believe the platform is merely using the logos of these platforms. Verified third parties such as exchange platforms are not listed.

You would expect the platform to offer transparency using Etherscan. But, unfortunately, there’s no way of confirming any transaction even though they claim to operate under the blockchain. And that’s the reason why we must expose this platform. 

Payment methods

We believe the platform accepts E-currencies as well as FIAT. However, withdrawing funds with their tokens is still a mystery as the event hasn’t taken place.

Safety and security of funds deposited by members of DefiGroups

Defi Groups Road Map

The safety of funds is out of the question with the platform already blacklisted by FINMA. There’s no safety net to protect investors in the event of a burning feature. So what’s to stop the platform from going under? 

Conclusion

The risks associated with a blacklist platform are too high to ignore. , Therefore, we, too, will be adding this platform to our blacklist.

Your best option is to use tested and proven investment options. 

If you want further details, feel free to leave a comment or email us. We would be happy to oblige.

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