The stock market research firm founded by notorious bitcoin price prediction “expert” Tom Lee has been spotted promoting the controversial IOTA cryptocurrency project to its clients.
As first noted by independent crypto researcher Hasu, the Fundstrat report was commissioned and paid for by IOTA Foundation co-founder Dominik Schiener himself.
The disclosure appears on page 71, conveniently tucked away from clear view:
Dominik Schiener is both the Co-Chairman of the Board of Directors for the IOTA Foundation and Co-Founder of the IOTA Foundation. Dominik Schiener has commissioned/paid for this specific research project and has permission to distribute.
Even worse is this shortened version of the research, which appears on fsInsight, Fundstrat’s retail investor portal.
Fundstrat does not disclose who paid for the report and even goes so far as to claim the following in the “Disclosures” section:
FS Insight does not know of, or have reason to know of any material conflicts of interest.
Despite Tom Lee’s frequent appearances on CNBC, Fundstrat’s credibility has already taken some justifiable hits.
After all, Lee has a long history of making bold bitcoin price predictions that never seem to come true.
And now his firm is promoting a questionable project to his own private clients. IOTA has a controversial reputation in crypto. And that’s putting it mildly.
Former Kraken programmer Andreas Brekken published in-depth research that concluded: “IOTA: Cannot be used for IoT. Loss of funds may occur.”
That’s certainly been true for investors:
Maybe Fundstrat’s “report” will shift the tide.
The whole debacle reminds me of former Bitconnect promoter Trevon James, who supposedly landed himself in hot water with the FBI. To pass his days, James now promotes other equally-scammy coins like HEX, which is “designed for 10,000x returns.”
Once a scammer, always a scammer, as they say. Or in this case: once a shill, always a shill.
Either way, Fundstrat isn’t doing its reputation any favors. If there’s money on the table, it seems clear the firm is willing to take a break from its “independent” research.
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Last modified: January 22, 2020 11:38 PM UTC