“In hockey – God, in life – sucker”. Business, ICO and “true friends” Evgeniy Malkin, for whom he will also be responsible. – Part 4/7

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MarkSpace got less ($10.5 million), but alsowe had to fight for them. What did you have to do with MarkModa for this? From a three-dimensional shopping center we had to make a three-dimensional universe, taking into account augmented and virtual reality (AR / VR) and taking into account mutual settlements between users and the system using the blockchain. Perhaps even the rich “Buratinos” in Africa would not have given money for a shopping center. Especially considering the fact that by the time of the ICO it had been “cut” for 4 years and the output was&#8230; But under the 3D universe, they could have given money.

Therefore, an updated concept was born witha new name, with a different logic of the domestic economy (without detail, of course) and the utility tokens that could serve as a means of settlement within MarkSpace.

Source: web.archive.org/web/20180225154647/https://mark.space/en/#About

Source: web.archive.org/web/20180225154647/https://mark.space/en/#Districts

But, of course, amid cosmic growthBitcoin prices (that is, to the moon, that is, “native”), this was of less interest to everyone. The average investor was then interested in exactly one thing: catching up with the token presale or at the very beginning of the token sale. Then at the time of public offering and organic sharp increase in price (it wasn’t different then - everything grew exceptionally) reset all that was available. Thus, the price of the token sagged or completely collapsed below the plinth, but the first flow of investors could come out with the "X". That is, earning at times more than the investment.

Often the ICO organizers themselves, despite common sensemeaning, own statements and potential criminal cases in the future for manipulation of the price of an asset, dumped tokens on exchanges. Or they did an additional issue for the same purpose. After all, tokens are not shares. Back then you could do whatever you wanted with them, as long as you “kept the cash.” For example, do not issue tokens to “hamsters” or issue them when the Bitcoin rate goes in the right direction. It was possible not to “cut” the promised product and give it a go, having previously purchased a new passport and citizenship. Or fight fiercely among themselves after collecting hundreds of millions and spend a year in mutual squabbling, showdowns, threats and trials. Or say &quot;may account woz hackd&quot; in the best traditions of Irina Rodnina - andblame the loss of money and tokens on unknown malicious hackers. Crypto exchanges and crypto funds were especially guilty of this trick. Just a few questions from clients - wow! — we were hacked! However, they also hacked for real with fairly regularity. Actually, this is what the situation looked like in the “crypto sandbox” in 2017-18. “Wild crypto-west” and “rob the loot.”

In this pleasant atmosphere of crypto-goodness and crypto-positivity, Mark.Space with Evgeniy Malkin on board decided to start an Initial Coin Offering. The business smelled like millions of air and zero responsibility.

The US Securities and Exchange Commission (SEC) triedthreaten the Howey test and the need to register the token sale as an issue of securities, but everyone was fine. Everyone quickly “changed” their tokens from virtual analogues of shares to utility tokens (the closest analogue is game currency or “air miles”) and banned the sale of tokens to Americans, Chinese and residents of a number of other countries where cryptocurrency fell out of favor with the authorities at that time. Afterwards, they continued to collect cash from “unsuspecting” investors (like the Avangard hockey players once did) and continued to engage in direct scams or imitation of activities at the expense of the money collected from the “hamsters”, with the money being put into their pockets along the way. Often added to this were crazy attempts to immediately charge the collected capital to the exchange and half-money in the hope of new “X’s”, as well as to open your own venture fund or crypto fund for another round of “shopping” of investors.

To a large extent, this tactic paid off.The SEC did not have enough qualified personnel, but simply real people to cope with the rapid flow of the most shady and outright fraudulent ICOs, crypto funds and crypto exchanges. As a result, the regulators, for the sake of caution, “pulled” a very limited number of offices and characters - and then everyone realized that Cerberus was on a leash. And the leash is too short. So create a mess, breed hamsters, buy Lamba - most importantly, don’t leak tokens to Americans and don’t violate Regulation S.

For Americans, they could still be handed out over the pope - thateventually slowly but surely began to happen. Slowly they began to open administrative and criminal cases in the United States, where the size of the fines made me wonder much whether it was necessary to start a story with tokens. But then, in the second half of 2017, the fright from the Howey Test and the threatening SEC statements pretty quickly passed.

Crypto startuppers and other crooks were scaredonly a sharp increase in costs for marketing and crypto conferences, together with a sharp increase in prices for assigning a normal rating by crypto agencies and a rise into space (native!) listing prices on more or less disgraceful crypto exchanges. This often happens when the market is overheated - if you want to collect millions, then be so kind as to share it with all participants in the scheme. Nevertheless, if you correctly approach the issue and competently push the noodles into the ears of investors, then the costs paid off with interest.

This is what “typical startupers” fromMark.Space. It was necessary to “forge the cue ball” while the topic was hot. Because further, with the fall in the Bitcoin exchange rate and with the growing awareness of the population about the numerous tricks of cryptans, interest in general in the topic of cryptocurrencies dropped sharply. By the end of 2019, the ICO topic finally died out. They are now trying to revive the corpse in the form of an IEO, but the fees are no longer the same. The enthusiasm disappeared, they finally stopped giving money for the idea and for the air.

In 2017, crypto-enthusiasm was at its peakanother level, and the MarkModa / MarkSpace team tried to offer the necessary set of promises and declarations to motivate investors to make millions. In the end, then, under the words “blockchain + 3D + VR”, burning eyes and fiery speeches shipped KAMAZ trucks with dough, and asked for almost nothing in return by the standards of IPOs and classic venture investments. It would have been a sin not to take advantage of the moment.

What was Mark.Space like as a project? All this, in short, reminded sale of plots on the moon. There is a virtual space, it is divided intodistricts, and those, in turn, are divided into units. That is, your own specific piece of space where you can sculpt whatever you want from the inner space. For example, Malkin’s residence was made for Malkin. And among the districts SUDDENLY there appeared those same MODA.MARK and LOFT.MARK.

Source: White Paper (ICD Declaration of Investment) Mark.Space

Source: White Paper (ICD Declaration of Investment) Mark.Space

Source: White Paper (ICD Declaration of Investment) Mark.Space

The economic model of the project, as was typical for the ICO of that time, was completely absent. In fact, it was the sale and resale of units+ the possibility of monetization by “settlers” through external links (CPA model) + it is possible to integrate an e-commerce module in the future (to make purchases directly inside Markspace). But the detail of all this was completely lacking. There was just a bunch of general words and declarations of how this would work.

White Paper itself (investment declaration of the project)occupied 50 pages, which immediately indicated the quality of the project. The author of Cryptocritics wrote an alpha version of WP for one of the startups at one time, and there only large strokes of description of the essence, audience and business model of the project took 100+ pages. Detailing all of this would draw 200 pages. 50 pages is just a set of promises and “give money”. Then it worked.

Source: White Paper (ICD Declaration of Investment) Mark.Space

Source: White Paper (ICD Declaration of Investment) Mark.Space 

The road map also contained interesting elements. In January 2019, the 2nd stage of “milking hamsters” was planned (just like in Token Stars). However, such a pyramid scheme was not something surprising then. If investors are willing to give money for some reason, then why not take it?

Source: White Paper (ICD Declaration of Investment) Mark.Space  

Well, about that, something was really doneaccording to the road map - you will find out further. However, everything was predictable there. In the meantime, remember these faces. You already know about some of them, but about other details later.

Source: White Paper (ICD Declaration of Investment) Mark.Space  

Source: White Paper (ICD Declaration of Investment) Mark.Space  

Now something interesting about declaredinvestments in Mark.Space itself. WP claims to have invested $5 million of its own funds before the ICO. And in ICO advertising and in the media on behalf of Malkin it was generally said that he personally invested $4 million.

Source: White Paper (ICD Declaration of Investment) Mark.Space  

Source: forum.bits.media/index.php? / topic / 67310-icobounty-markspace-% D0% B8% D0% BD% D1% 82% D0% B5% D1% 80% D0% BD% D0% B5% D1% 82-% D0% BD% D0 % BE% D0% B2% D0% BE% D0% B3% D0% BE-% D0% BF% D0% BE% D0% BA% D0% BE% D0% BB% D0% B5% D0% BD% D0% B8% D1% 8F-markspace / 

Now the questions. First: if you delve into the reporting of legal entities Malkin, Tikhonov, Kontorovich and Co. will Malkin's $4 million be there? It seems to us that they are not visible there. And whose then remaining million? And the second: did Malkin declare the $4 million as an investment? in reporting to the American tax authorities (IRS)?

Source: t.me/markspaceioRUS/31290 

Well, the third question: Was the condition for freezing tokens that was supposed to motivate the team actively sawing the project, and not immediately merge tokens on the exchange, going into the cache? We have some doubts about this.

Source: White Paper (ICD Declaration of Investment) Mark.Space 

However, despite all the hype around Markspace and its initial dubiousness, this project by March 2018 had collected $10.65 million on the token sale.

Of which, according to Vyacheslav Utushkin (was responsible for marketing for the ICO, known for thrash project Endo) allegedly returned 1.5 million in crypto to investors who turned out to be US citizens.

In the interview, generally interesting data on the number of investors and applications from clients:

&quot;We have 20,000 people bought tokens, the average check is 500 dollars. We are creating a project that will be widely used by businesses. We have more than 100 applications per week. We are growing.&quot;

Mr. Utushkin is well-known in the Russian crypto communitythe fact that everything he says is better divided by 2, or even by 7 and 10. But if the information about the number of investors and the average check is correct, then congratulations to the Mark.Space team from the editors of Sports.ru and Cryptokritika. You immediately violated the legislation of a mass of countries about accredited / qualified investors. You advertised and sold tokens to a bunch of non-qualifications. Not to mention the Americans.

We are not saying that there are big doubts aboutthe quality of your KYC/AML, and that the “purity” of the ethers and bitcoins you accepted is in question. As a result, if state regulators get their hands on it, you will be called into a variety of offices for intimate conversations. This doesn’t always end well for celebrities either: just remember the Floyd Mayweather case. Note to Malkin.

But this is not the funniest thing in Utushkin’s interview. He needs a blockchain for rendering. Did he even read the White Paper of the project?

&#8230;. .

&quot;We will have the world's first server blockchain. Companies use the server at 15%, there is capacity. The server can perform more complex operations. We drop objects there, the servers render and receive our tokens. Greed rules the world - miners make money, and people make money. YouTube will understand me when their vidos are rendered. And I suggest using the power of huge servers.&quot;

&#8230;. .

Moreover, it turns out Malkin did not invest in Mark Space, but in Moda. Mark / Loft. Mark. And what then did investors get into the publicity in advertising, in the media and on the roadshow? And whose is such your money?

&#8230;. .

&quot;— How did Malkin invest 4 million and believe?

— I believed in the team. We showed something, a team of people with businesses behind. When he saw burning eyes - he believed.

- Here's 4 million for you?

- Almost like that. U We didn't have long negotiations. There were conceptual relations.

- Is he in trouble? Or tokens?

- No, he invested in another idea - a virtual shopping center. In 2016, all this money that was received from him, they were running out, there were fears that the project would fall.

- And with whose money?

- Ours&quot;

&#8230;. .

“You are all great here” © However, a little later, in April 2018, investors will bring in another 11+ million dollars - and total will be collected 22 million.

Source: medium.com/@markspace/mark-space-secures-us-11-million-in-financing-to-drive-growth-of-blockchain-powered-social-vr-ar-cfd9130a5571

Have their investments paid off? For someone, probably yes. But those who believed in the long-term development of the project were waiting for a typical picture of the life cycle of a “typical cryptostartup.” Clinical death on cryptocurrency exchanges: a token with a price in the region of zero and scanty trading volumes. The price drop was 98.2%. And even if you want to give someone the MRK tokens you have saved for a rainy day for current pennies, it will be extremely difficult for you to find a buyer.

How did this happen, where is the money, who is to blame and where to godid you watch Evgeni Malkin? Good questions. You will receive answers in the following chapters. But first, let’s listen to Dmitry Machikhin, who was listed on the Mark.Space website as “Head of the Legal Department.”

Chapter 8. Direct speech. Dmitry Machikhin.

 Source: web.archive.org/web/20180225154647/https://mark.space/ru/#Team 

Machikhin Dmitry Sergeevich. Partner and co-founder of the legal bureau GMT LEGAL.

&#8230;. .

I learned about Mark.Space in the summer of 2017. I was introduced to them so that in the future they would become clients of our company. The first contact was with Denis Polulyakhov, in St. Petersburg. Denis spoke of himself as a co-founder of Markspace and MODA.MARK. Already in the future I became aware that he worked in the Government of Moscow, promoted one of the brands of vodka. He shines almost nowhere, but nevertheless he is a co-founder of a Singapore legal entity [approx. Authors - Mark.Space PTE Does Not Have It].

Later I met Anton Tikhonov and Oleg Ershov [approx. authors - co-founder of Mark.Space PTE]. Oleg at that time helped Polulyakhov attract investments and went to events. I must say that there were incomprehensible moments with Denis in the process of work, and Anton is a complex person in himself. The two were constantly arguing among themselves. I have never seen Yana Kontorovich, although she is the CEO of the project.

At that time, we wanted to make sure that the projectadequate - even if our degree of responsibility is low. They made a good impression - the office on Varshavka, people really worked there. They clearly told where they were going to spend the money, they wanted to raise 20 million.

The plan was like this:the money is spent on the company that does the development. All results of this activity are formalized: source code, objects of intellectual rights. Accordingly, a parent company appears in Singapore (MARK.SPACE PTE), which will also own the brand. We needed a jurisdiction with a clear and understandable position on cryptocurrency in order to be able to work with it at all. Moreover, the main collection market was in Asia - VR is most developed in that region. And an Estonian legal entity (MARK.SPACE OU) was needed in order to make payments. In addition, there were exchanges in Estonia where, when passing KYC, it was possible to take crypto into account on the balance sheet and transfer it to non-cash account. Actually, this is a typical working scheme of a crypto project for 2017. By the way, Mark.Space model did not provide for profit 2-3 years. It was not hiding.

In the preparation process and during the ICO, we triedmake sure that there are no promises about asset growth on their part, so that communication is adequate in chats with investors. It is important to understand that the sphere is not fully regulated, and the services that we provide are valid here and now. We always warn that there may be tax consequences in the first place. They also warned that every investor should be verified, because in some countries there is a ban. The project team itself did not divide investors into qualified and unskilled. The money attracted regional representatives in Asia. They are usually paid remuneration immediately after receipt of money.

After the ICO, the project was divided into two parts. The development was done by Site Makers, and the head office was in Moscow City. There Denis and Anton were engaged in the development of the project.

We were paid for our work in cryptocurrency. Yes, Anton always dealt with all payments.

Malkin's name came up when we were preparing the packagedocuments, collected standard information, and asked questions about beneficiaries and their citizenship. These questions caused tension in Tikhonov and Polulyakhov: they began to whisper, and then they said that there is a US citizen in the project [approx. authors - we specifically asked again, and Dmitry confirmed that they were talking about an American citizen].

I only found out about this when Malkin’s international passport arrived. He himself never appeared in our office at all. Only Denis and Anton &#8211; all decisions were made by them and on his behalf.

It may seem strange to you that a person is indicatedco-founder, but does not conduct business - but his position. The man invested, no one hid that he was in the project. However, we did not check this - this was not the task. The founders themselves said that he invested in the project.

The difficulty with having a U.S. citizen could put Malkin in jeopardy. They did not know at that moment where they were going, what would happen in the end, and Malkin’s citizenship was a risk.

We finished working with Mark.Space in March-April 2018. We ceased to be their accompanying company after Denis brought Marina Danilyuk  - a lawyer who, in our opinion, was not particularly qualified. After the ICO there was only mechanical work with documents, when they sent something - and then they completely left us.

Why was I listed as their head of the legal department? Estimate yourself how I, owning GMT, can be at work in MarkSpeys? They set themselves without asking [approx. authors - this often happened in other ICO projects]. I noticed, probably, in a month or two - their site was just changing. He asked: why was I indicated as an employee? Why not at least an adviser? They said that only foreigners want advisers. And then he stopped paying attention to it while he was busy with his other project.

= = = = =

CONTINUED:
PART 5

= = = = =

Original post: https://zen.yandex.ru/media/id/592d3ad87ddde88dbd5af2da/v-hokkee-bog-po-jizni-loh-biznes-ico-i-vernye-druzia-evgeniia-malkina-za-kotoryh-on-je-i-budet-otvechat-5d7a000a35ca3100ad9a5b3c

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