3 ms·

There is a huge problem with this audit. If we look at the page: https://www.iconomi.net/audit/201804 https://www.iconomi.net/audit/201804 There are liability

There is a huge problem with this audit. If we look at the page: https://www.iconomi.net/audit/201804 https://www.iconomi.net/audit/201804 There are liability and reserve line items. ICONOMI made special effort to spell out their liabilities - giving user and DAA level breakdowns in coins. But, there are no details on what the reserves look like. We get only one line explaining they had 42 million in parity multisig wallet. The problem with such approach is that we don't know what all things were considered during the audit. This leaves lot of questions unanswered. For example - Does ICONOMI hold cash? If yes, then what happens if liability coin values outgrows their cash.

cryptogeek 9y ago
Good question. Not directly visible from ICONOMI audit page, however this page has more info: https://www.chipin.com/iconomi-transparency-crypto-industry-first-blockchain-audit/ https://www.chipin.com/iconomi-transparency-crypto-industry-... They hold user assets directly I would get from this statement: "The final result of the blockchain audit proved that the ICONOMI platform is solvent, user balances are as reported and the reserves cover the liabilities" or this one "The balances of digital assets as shown on the ICONOMI platform for each user reflect the actual balances held by ICONOMI on behalf of its users."
- deleted 9y ago
  [deleted]
jesusthatsgreat 9y ago
Iconomi publish quarterly reports and in the latest one they had over $9m cash. They've also previously said they always aim to have ~2 years of runway in cash to protect against a long term bear market: https://medium.com/iconominet/iconomi-financial-report-q4-2017-17da25349f3d https://medium.com/iconominet/iconomi-financial-report-q4-20...
- thisisit 9y ago
  That is good on ICONOMI that they publish such reports. But, this kind of misreporting really lowers my confidence in ICONOMI. First, they only have a profit and loss statement which looks correct. What is does this burn rate entail? Second, the Balance sheet is out of whack. This makes me wonder if they have a finance guy on their payroll. Balance sheet needs to contain Asset and Liabilities. This report actually contains coin and cash balances. Third, the actual balance sheet was delivered by this Deloitte report. Given that they have this data, how hard was it to prepare a proper report and tell everyone what were actual their assets and liabilities? They seemed too focused on liabilities. It seems either Deloitte audit was fake or ICONOMI is knowingly hiding their numbers.
  - cryptogeek 9y ago
    For whatever reason they didn't break down the reserves it should be pretty clear. They have the Q1 quarterly report due by end of month. Considering they report Iconomi assets it should be visible from that since: - in that article that I linked Deloitte said that they hold user / DAA assets - the difference to the reserves therefor is what Iconomi holds - which is what they publish in every quartly report right? It's funny how an actual Deloitte audit lowers your confidence in ICONOMI. How many crypto companies publish anything like this that they manage to gain your confidence? With links please.
    - jlgaddis 9y ago
      > It's funny how an actual Deloitte audit lowers your confidence ... WHAT Deloitte audit? I have seen absolutely nothing to convince me that an audit actually took place. Let me know when they post a document roughly similar to the one at [0] (disclaimer: it's not the best example either, but it is a reasonable one that I could locate quickly). On a side note, your brand new HN account (created just several hours ago) that was apparently created just to comment on this thread about how ICONOMI is "legit" (for example) does not really inspire confidence either. In fact, it does exactly the opposite. [0]: http://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/investors/corporate-gov-pdf-archive/cg/Shareholders%20Meetings/2017/Deloitte%20old/Deloitte%20Report%20old%20ABI%20EN.PDF http://www.ab-inbev.com/content/dam/universaltemplate/ab-inb... (PDF)

cryptogeek 9y ago

Good question. Not directly visible from ICONOMI audit page, however this page has more info: https://www.chipin.com/iconomi-transparency-crypto-industry-first-blockchain-audit/ https://www.chipin.com/iconomi-transparency-crypto-industry-... They hold user assets directly I would get from this statement: "The final result of the blockchain audit proved that the ICONOMI platform is solvent, user balances are as reported and the reserves cover the liabilities" or this one "The balances of digital assets as shown on the ICONOMI platform for each user reflect the actual balances held by ICONOMI on behalf of its users."

deleted 9y ago
[deleted]

jesusthatsgreat 9y ago

Iconomi publish quarterly reports and in the latest one they had over $9m cash. They've also previously said they always aim to have ~2 years of runway in cash to protect against a long term bear market: https://medium.com/iconominet/iconomi-financial-report-q4-2017-17da25349f3d https://medium.com/iconominet/iconomi-financial-report-q4-20...

thisisit 9y ago
That is good on ICONOMI that they publish such reports. But, this kind of misreporting really lowers my confidence in ICONOMI. First, they only have a profit and loss statement which looks correct. What is does this burn rate entail? Second, the Balance sheet is out of whack. This makes me wonder if they have a finance guy on their payroll. Balance sheet needs to contain Asset and Liabilities. This report actually contains coin and cash balances. Third, the actual balance sheet was delivered by this Deloitte report. Given that they have this data, how hard was it to prepare a proper report and tell everyone what were actual their assets and liabilities? They seemed too focused on liabilities. It seems either Deloitte audit was fake or ICONOMI is knowingly hiding their numbers.
- cryptogeek 9y ago
  For whatever reason they didn't break down the reserves it should be pretty clear. They have the Q1 quarterly report due by end of month. Considering they report Iconomi assets it should be visible from that since: - in that article that I linked Deloitte said that they hold user / DAA assets - the difference to the reserves therefor is what Iconomi holds - which is what they publish in every quartly report right? It's funny how an actual Deloitte audit lowers your confidence in ICONOMI. How many crypto companies publish anything like this that they manage to gain your confidence? With links please.
  - jlgaddis 9y ago
    > It's funny how an actual Deloitte audit lowers your confidence ... WHAT Deloitte audit? I have seen absolutely nothing to convince me that an audit actually took place. Let me know when they post a document roughly similar to the one at [0] (disclaimer: it's not the best example either, but it is a reasonable one that I could locate quickly). On a side note, your brand new HN account (created just several hours ago) that was apparently created just to comment on this thread about how ICONOMI is "legit" (for example) does not really inspire confidence either. In fact, it does exactly the opposite. [0]: http://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/investors/corporate-gov-pdf-archive/cg/Shareholders%20Meetings/2017/Deloitte%20old/Deloitte%20Report%20old%20ABI%20EN.PDF http://www.ab-inbev.com/content/dam/universaltemplate/ab-inb... (PDF)