Most ICOs nowadays have a personal max cap to prevent whales from getting the biggest piece of the pie. However, due to the incompetence and the lacking integrity of the ICO teams, whales are still possible to make sure that they receive "whoteva the fock they wont" (Conor McGregor). How? By creating fake profiles, getting KYCed with fake or stolen documents and using bots as well as multiple ERC20 addresses.
During the DADI ICO, many accusations came up in their telegram group that insiders received the ICO address before others did and before it was officially announced on their homepage (which was down in the beginning due to high traffic). Since it is possible to look for certain smart contracts and finding the address before it is officially announced, I personally would not speak of "insider information." Some people are just smarter than others. However, IMO this is not fair to all the others who actually play by the rules. If Dadi were competent enough, they would have programmed the smart contract in a way that it would have only allowed transactions after a certain point of time.
Regardless of their incompetence in that case and the fact that their email provider got hacked and the email addresses of ICO participants got leaked and the fact that they announced the wrong personal max cap, which also led to a lot of refunds, I actually want to talk about their nonexistent integrity and how whales are cheating their way into ICOs.
The DADI ICO officially started on January 29th at 12 PM +UTC. However, the first transaction already got in at 11:56:56 AM +UTC. Right after that first transaction at least 150 transactions of exactly 3.4 ETH came in (check the last few pages), starting at 11:57:23 AM +UTC and ending at 11:58:26 AM +UTC, still before the ICO officially began. The person(s) behind this obviously used a smart contract/bot. Due to the fact that all transcations were of the exact same amount (3.4 ETH), I got curious and tracked them back. All addresses that sent exactly 3.4 ETH within 1.03 minutes were all used for the first time and all received their ETH from exactly two addresses:
This one and that one. But these two addresses were also exclusively used for the DADI ICO and both received their ETH from another two addresses, which both count as "whales" in my book. You can check them here and here.
So what has this to do with the DADI team? After the ICO ended, I tweeted about this strange incident on twitter. The official DADI account immediately blocked me after that. After another hour, I got contacted by one of their team members, who wrote "Nice try Christian - sorry you didn't get in." After I told him that I was part of their ICO and did in fact get in, but that apparently something fishy was going on, he contacted me via DM. I explained him what was going on and he replied that DADI did not leak the address, promised that they will look into that incident as well as that he will contact me after they found a solution. But I never heard from him or them again. After I brought this topic up in their telegram group, my posts were instantly removed (probably by their bot).
Maybe you're asking yourself now what my point is... My point actually is that it would easily be possible to track the whale(s) and his/their accounts due to the fact that everybody had to do a KYC before the start of the ICO. That was exactly what I asked their team member to do and offered them assistance by sending them all the information they needed to track them down. But as I said, I never heard from them again.
Maybe you're thinking "so what?!? I don't care". But I do care. IMO it is not fair to the community that nobody is actually doing something to prevent this from happening. And when you check the token transfers of the two whale addresses above, you will see that this is and was not the first time they did this. They did this with SelfKey, Theta, WePower, CoinFi, Gifto, Kyber and others.
So why is not one project so smart and upright to take action and prevent this from happening? Not to mention the fact that these whales probably use fake or stolen identities for their KYCs...
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