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Pay Attention to These 7 Bitcoin Scams
Bitcoin – the possible Pandora’s Box of the currency world – has never been short of controversy. Whether it be aiding the black market or scamming users out of millions, bitcoin is no stranger to the front page.
Still, the jury is out on the legality and usefulness of bitcoin – leaving it in a proverbial grey area. Bitcoin’s price has fluctuated throughout its history, falling and rising, currently hovering near $10,000. Perhaps you’ve found bitcoin while it looks to be on the rebound and find yourself interested in it as an investment.
However, there have been several legitimate bitcoin scams that have become infamous, and you need to know about them – but, what are the top 7 bitcoin scams? And how can you avoid them?
What Is a Bitcoin Scam?
For most cases, it may be pretty obvious what a scam is – but with bitcoin, and cryptocurrency in general, things become murkier. Bitcoin itself is an unregulated form of currency that essentially is a mere number that is only given value because of an agreement. It’s basically like a moneybag with a lock on it – the code of which is given to the recipient of the bitcoin (an analogy drawn by Forbes in 2020).
Bitcoin scams have been famously criminal and public in nature. With no bank as a middleman in exchange, things become more complicated; so hackers and con men have had a heyday.
Top 7 Bitcoin Scams
There have been (and undoubtedly will be) nearly countless bitcoin scams, but these frauds make the list of the top 7 worst bitcoin scams to date. Take note.
1. Malware Scams
Malware has long been the hallmark of many online scams. But with cryptocurrency, it poses an increased threat given the nature of the currency in and of itself.
Recently, a tech support site called Bleeping Computer issued a warning about cryptocurrency-targeting malware in hopes of saving customers from sending cryptocoins via transactions, reported Yahoo Finance.
“This type of malware, called CryptoCurrency Clipboard Hijackers, works by monitoring the Windows clipboard for cryptocurrency addresses, and if one is detected, will swap it out with an address that they control,” wrote Lawrence Abrahams, computer forensics and creator of Bleeping Computer.
The malware, CryptoCurrency Clipboard Hijackers (which reportedly manages 2.3 million bitcoin addresses) switches addresses used to transfer cryptocoin with ones the malware controls – thus transferring the coins to the scammers instead. And, according to Asia Times, even MacOS malware has been connected to malware scams involving cryptocurrency investors using trusted sites like Slack and Discord chats – coined “OSX.Dummy.”
2. Fake Bitcoin Exchanges – BitKRX
Surely one of the easiest ways to scam investors is to pose as an affiliate branch of a respectable and legitimate organization. Well, that’s exactly what scammers in the bitcoin field are doing.
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South Korean scam BitKRX presented itself as a place to exchange and trade bitcoin, but was ultimately fraudulent. The fake exchange took on part of the name of the real Korean Exchange (KRX), and scammed people out of their money by posing as a respectable and legitimate cryptocurrency exchange.
BitKRX claimed to be a branch of the KRX, a creation of KOSDAQ, South Korean Futures Exchange, and South Korean Stock Exchange, according to Coin Telegraph.
BitKRX used this faux-affiliation to ensnare people to use their system. The scam was exposed in 2020.
3. Ponzi Scheme – MiningMax
“Ponzi bitcoin scam” has got to be the worst combination of words imaginable for financial gurus. And, the reality is just as bad.
Several organizations have scammed people out of millions with Ponzi schemes using bitcoins, including South Korean website MiningMax. The site, which was not registered with the U.S. Securities and Exchange Commission, promised to provide investors with daily ROI’s in exchange for an original investment and commission from getting others to invest (basically, a Ponzi scheme). Apparently, the site was asking people to invest $3,200 for daily ROI’s over two years, and a $200 referral commission for every personally recruited investor, reports claim.
MiningMax’s domain was privately registered in mid-2020, and had a binary compensation structure. The fraudulent crypto-currency scam was reported by affiliates, resulting in 14 arrests in Korea in December of 2020.
Korea has long been a leader in technological developments – bitcoin is no exception. However, after recent controversy, it seems as though this is changing.
“But a lot of governments are looking at this very carefully,” Yoo Byung-joon, business administration professor at Seoul National University and co-author of the 2020 research paper “Is Bitcoin a Viable E-Business?: Empirical Analysis of the Digital Currency’s Speculative Nature,” told South China Morning Post in January. “Some are even considering putting their currencies on the blockchain system. The biggest challenge facing bitcoin now is the potential for misuse, but that’s true of any new technology.”
4. Fake Bitcoin Scam – My Big Coin
A classic (but no less dubious) scam involving bitcoin and cryptocurrency is simply, well, fake currency. One such arbiter of this faux bitcoin was My Big Coin. Essentially, the site sold fake bitcoin. Plain and simple.
In early 2020, My Big Coin, a cryptocurrency scam that lured investors into sinking an alleged $6 million, was sued by the U.S. Commodity Futures Trading Commission, according to a CFTC case filed in late January.
The CFTC case further details that the suit was due to “commodity fraud and misappropriation related to the ongoing solicitation of customers for a virtual currency known as My Big Coin (MBC),” further charging the scam with “misappropriating over $6 million from customers by, among other things, transferring customer funds into personal bank accounts, and using those funds for personal expenses and the purchase of luxury goods.”
Among other things, the site fraudulently claimed that the coin was being actively traded on several platforms, and even mislead investors by claiming it was also partnered with MasterCard, according to the CFTC case.
Those sued included Randall Carter, Mark Gillespie and the My Big Coin Pay, Inc.
5. ICO Scam – Bitcoin Savings and Trust and Centra Tech
Still other scammers have used ICO’s – initial coin offerings – to dupe users out of their money.
Along with the rise in blockchain-backed companies, fake ICOs became popular as a way to back these new companies. However, given the unregulated nature of bitcoin itself, the door has been wide open for fraud.
Most ICO frauds have taken place through getting investors to invest in or through fake ICO websites using faulty wallets, or by posing as real cryptocurrency-based companies.
Notably, $32 million Centra Tech garnered celebrity support (most famously from DJ Khaled), but was exposed for ICO fraud back in April of 2020, according to Fortune. The company was sued for misleading investors and lying about products, among other fraudulent activities.
The famous DJ wrote his support in a caption on Instagram back in 2020.
“I just received my titanium centra debit card. The Centra Card & Centra Wallet app is the ultimate winner in Cryptocurrency debit cards powered by CTR tokens!” Khaled wrote.
The U.S. Securities and Exchange Commission even issued a warning in 2020 about ICO scams and faux investment opportunities, brought on by a slew of celebrities who promoted certain ICOs (like Paris Hilton and Floyd Mayweather Jr. to name a few).
“Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion,” the SEC wrote in an Investor Alert in 2020. “A failure to disclose this information is a violation of the anti-touting provisions of the federal securities laws.”
Another example is Bitcoin Savings and Trust, which was fined $40.7 million in 2020 by the SEC for creating fake investments and using a Ponzi scheme to scam investors. According to Coin Telegraph, Trenton Shavers, the organization’s leader, allegedly scammed investors into giving him 720,000 bitcoins promising a 7% weekly interest on investments – which he then used to pay back old investors and even fill his personal bank accounts.
6. Bitcoin Gold Scam – mybtgwallet.com
Nothing catches the eye of the naïve quite like the promise of gold – bitcoin gold, of course.
That is exactly what mybtgwallet.com did to unsuspecting bitcoin investors.
According to CNN, the bitcoin gold (BTG) wallet duped investors out of $3.2 million in 2020 by promising to allow them to claim their bitcoin gold. The website allegedly used links on a legitimate website (Bitcoin Gold) to get investors to share their private keys or seeds with the scam, as this old screenshot from the website shows.
Before the scam was done, the website managers (slash scammers) was able to get their hands on $107,000 worth of bitcoin gold, $72,000 of litecoin, $30,000 of ethereum, and $3 million of bitcoin, according to CNN.
Bitcoin Gold, the site’s wallet used in the scam, began investigating shortly after, but the site remains controversial. Still, firm released a warning to bitcoin investors.
“It’s worth reminding everyone that it will never be truly safe to enter your private key or mnemonic phrase for a pre-existing wallet into any online website,” Bitcoin Gold wrote. “When you want to sweep new coins from a pre-fork wallet address, best practice is the same as after other forks: Send your old coins to a new wallet first, before you expose the private keys of the original wallet. Following this basic rule of private key management greatly reduces your risk of theft.”
7. Pump and Dump Scam
While this type of scam is certainly not relegated to just bitcoin (thank you for the education, “The Wolf of Wall Street”), a pump-and-dump scam is especially dangerous in the internet space.
The basic idea is that investors hype up (or “pump up”) a certain bitcoin – that is usually an alternative coin that is very cheap but high risk – via investor’s websites, blogs, or even Reddit, according to The Daily Dot. Once the scammers pump up a certain bitcoin enough, skyrocketing its value, they cash out and “dump” their bitcoin onto the naïve investors who bought into the bitcoin thinking it was the next big thing.
Bittrex, a popular bitcoin exchange site, released a set of guidelines to avoid bitcoin pump-and-dump scams.
While “stackin’ penny stocks” may sound like an appealing way to earn an extra buck (thanks to its glamorization by Jordan Belfort), messing in bitcoin scams is nothing to smirk at.
How to Avoid Bitcoin Scams
With the inevitable rise of bitcoin in current and coming years, it is becoming increasingly important to understand and be on the lookout for bitcoin scams that could cost you thousands. As more people become interested in Bitcoin, more people are also likely to try and pull off a scam.
There is no one formula to avoiding being scammed, but reading up on the latest bitcoin red flags, keeping information private, and double checking sources before investing in anything are good standard procedures that may help save you from being duped. Cryptocurrency can be a confusing topic even for the experienced Bitcoin enthusiast, so the more you read up on the world of Bitcoin, the more prepared you can be. After all, knowledge is power.
10+ Cryptocurrency Fraud and Scams You Need to Pay Attention to
The most (un)common cryptocurrency fraud and scams you need to look out for
Cryptocurrency is not exactly a newfangled contraction; the idea of a decentralized digital asset was coined in the late ‘80s by David Chaum, the American cryptographer whose works ignited the computer science revolution that gave birth to Bitcoin, Blockchain, Altcoin, and a whole new way of looking at monetary transactions.
But cryptocurrency fraud is one of the looming dangers of this new digital opportunity. Here’s how you can make sure you don’t fall for it.
The Birth of Bitcoin
Ecash, the first form of cryptocurrency and Chaum’s brainchild, was launched in 1983 as an alternative to paper money. Digicash, the company regulating this novel ‘non-corporeal’ monetary asset, managed to raise over $10 million in a span of a decade.
The concept was sound and the idea of getting rid of traditional money appealed to the general public. And in 2009, a group called Satoshi Nakamoto launched Bitcoin, which was unanimously considered the first (and true) decentralized digital currency.
With the advent of a new era of non-bank-dependent digital currency, numerous Bitcoin alternatives were seeded on the market. Altcoins they’re called and, at the moment, there are over 4,000 of them in use.
Living the dream, right? Well, not my intention of casting a dark cloud over this brave new world, but wherever money’s involved, there’s bound to be someone trying to bamboozle a goose.
Cryptocurrency fraud, the subject du jour, has gained quite a foothold, with hundreds of thousands of people being swindled every day. Not exactly breaking news, but the ploys have become so intricate, that it’s increasingly difficult to tell apart the fake from the legit one.
Hence this little handy hand-guide will tell you all about the wondrous world of crypto scams and how to avoid them. Let’s start with a rundown of the most (un)common scams.
SECURE YOUR ONLINE BROWSING!
As a rule of thumb, you should never accept crypto-trading with companies or startups that are not blockchain-powered. In layman’s terms, that means that all transaction data can be tracked and reviewed.
Furthermore, before committing to a company or another, you may want to review their credentials – look for status quo indicators such as adherence to initial coin offerings rules and digital currency liquidity.
That’s about it at a glance. Up next, we’re going to dive into the most common and uncommon cryptocurrency scams. Enjoy (or not).
Fake ICOs (initial coin offerings)
Here’s how ICOs are defined:
“An ICO is a type of funding using cryptocurrencies. Mostly the process is done by crowdfunding but private ICOs are becoming more common. An ICO is a quantity of cryptocurrency sold in the form of tokens or coins to investors or speculators, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. The tokens sold are promoted as future functional units of currency if or when the ICO’s funding goal is met and the project launches. In some cases, like Ethereum the tokes are required to use the system for its purposes.”
Impeccable textbook definition, don’t you think? But what does it really mean? Let’s water it down a little. Imagine the following scenario: assume, for a moment, that you’re running a tech company that has come up with an entirely new cryptocurrency management system or a crypto coin. All fine and dandy, but how on Earth are you going to raise enough money to streamline your idea?
Certainly, you can try to go through banks or call up some capitalist investors, but that would mean dividing or even giving up the ownership of your small business. Fortunately, there’s a better way to go about this – the ICO.
First, you will need to get the attention of some people willing to invest in your idea. Not so fast; to pull this off, you will also need a way to show your future partners that your idea is sound. You can do that by creating a crackerjack whitepaper.
It’s essentially the documentation that proves that your crypto idea works and is, of course, worth the money. You should also consider setting up a website to increase your company’s credibility.
The second step you should take would be to convince the interested partners to give you some of their money in exchange for a small amount of your ‘homemade’ currency.
The point is to up the currency’s rate of circulation and usage of thereof. That, in turn, will increase the value of your newly-created digital asset which translates into a steady cash flow for your company. In this case, the incentive would be a higher return on investment.
Sorry for the rather long detour, but it’s important for you to know the mechanics behind ICOs in order to understand how scams work and how swindlers act. Enter fake or fraudulent ICOs which are specifically engineered to bleed cash from naïve investors.
How do they do that, you ask? By promising astronomical gains in the span of a couple of weeks. For instance, by spinning the fake crypto coin’s white paper (that would the project’s documentation I was telling you about), the fraudster will attempt to lure in investors by promising them astronomical gains (100x or even 1,000x) in a short amount of time – try a couple of weeks or event days.
Fake ICOs count as some of the most common types of cryptocurrency scams. Unfortunately, over the past couple of years, the scales kind of tipped in the ‘favor’ of the fake one.
In fact, according to a Bloomberg study, over 80 percent of ICOs are fraudulent, with less than 8 percent reaching out. Yes, they can be avoided, but we will talk more about that in the third part of this article.
Another cryptocurrency scam is the so-called shady or overnight exchange. How does that work, you ask? Let’s assume for a moment that you want to exchange your digital token for a better-performing crypto coin.
One would naturally assume that this is what every crypto coin possessor should aim for if he (or she) is looking to increase gains. The best way to go about this would be to exchange your coin with another that outperforms it.
Still, before you go full wolf of Wall Street on this one, consider choosing a legit and regulated cryptocurrency broker or exchange system. Why? Because you would risk losing your entire portfolio by tying them in a venture that simply sounds too good to be true.
Shady exchanges tend to follow a similar pattern – boy has crypto-money, boy finds better price, boy makes deposit coaxed by shady deal-man, boy asks about how the deal’s performing.
Teary-eyed deal-man says that he couldn’t upscale the business, the price dropped, and that the coins are worth zilch. The dénouement – the shady dealer gets your coins and you end up with a dent in your wallet.
There’s nothing wrong in picking up an app to manage your cryptocurrency portfolio – plenty to choose from and, speaking on behalf of the vast majority, they’re great-look and easy to use.
Yes, I know that you know that there’s a big “but” around the bend, but it is an article on cryptocurrency fraud. Lately, a great deal of fraudulent wallets has been discovered on Google’s Play Store.
Though Google is making efforts to root these posers, their efforts are hindered by malicious developers which seed them by the hundreds. Anyways, the latest crypto-wallet apps to be cloned was Trezor. So, what happens when you use one of these apps to manage your portfolio? Money goes in and, poof, it melts into nothingness. User beware!
Pyramid schemes (Ponzi)
Handsome son of a gun, isn’t he? Meet Charles Ponzi or the reason why the dictionary people added a new entry under the word “pyramid”. Yup, he’s the mastermind behind the eponymous lurk. Never heard of it? That’s all right; it just means you haven’t had any dealings with hedge funds and private equity.
Pulling this off is does not require a Ph.D. in rocket science; just the right amount of guile. The idea is to coax as many people as possible to invest in, well, something.
Ponzi managed to pull this off with postage stamps, so why wouldn’t it work with cryptocurrency? The pyramid scheme in a nutshell: the scammer comes up with a ‘foolproof’ investment scheme. Enters the goose, just ready to be plucked. The swindler will persuade the goose to tie his money into this outstanding venture, promising higher gains.
The goose will then invest a sum amount in the idea. But that’s not all – the initial investors now have the job to bring in new investors if they want to get a share of that dough or, in this case, digital coins.
Once the new investors step in, the older ones begin getting payouts. And it goes merely on until the new investors well run dry. In the end, the only one who stands to win is the scammer.
When all else fails, you will always have the ‘classics’ to fall back to. A while back, I wrote an article about just how effective PayPal phishing scams are, even though everyone knows about them and how they work (ironic, isn’t it?).
Pretty easy to imagine how this type of scam works – using psychological manipulation, the scammer will trick you into revealing your username, password, or billing information. The most commonly used tactics are Punycode and the so-called fake Airdrops. So, how does this work?
Simply put, the scammer sends the user a link that sends him to a fake page. Naturally, this page looks exactly like a legit crypto-trading service. On top of that, the pot is sweetened by a free Airdrop. In most cases, the users are asked to send a certain number of Bitcoins or Ether to a spiked MyEtherWallet.
Considered to be the most devastating weapon in a scammer’s arsenal, impersonation scams are very hard to detect and, therefore, to counter. This is what in cybersecurity lingo is called a multi-vector attack.
First, the impersonator must gather as much information as he can about the victim. Up next, there’s the company on behalf of which he will attempt to contact the victim. Of course, this also involves calling up some vital info.
For instance, in some cases, the scammers posed as the project owner or even the company’s CEO in order to lure the victim with a once-in-a-lifetime offer.
Here’s where the multi-vector attack comes into play – using a combination of social engineering, phishing, and cold-calling, the scammer will coax the victim into investing his crypto coins into his idea.
As I said, impersonation scams are very hard to detect simply because the scammers know how to do their homework. The only possible defense once can think of might be having some inside info on the company.
Careful who you trust with your cryptocurrency portfolio. There are dozens of unregulated online brokers and exchanges and, like in most scamming schemes, they lure customers with low prices, competitive trading products, and quick returns.
After you make the deposit, it will become increasingly hard to withdraw your money. For instance, they would ask for high commissions or conjure up bogus reasons why you can’t withdraw your funds or gain. Worst case scenario – they stop returning your calls and run away with your money.
Automated trading systems
Given the volatility of crypto coins like Bitcoin, promoters would look by just about any opportunity to make a profit. The general tendency would be to speculate the price differences between various exchanges.
Why is this considered a scam? In most cases, these cryptocurrency exchanges have ludicrously long withdrawal process, not to mention the fact that they tend to charge a lot in order to swap Bitcoins or Ether with fiat currencies (government-issued currency that can’t be backed up by a physical commodity with value, like silver or gold).
Basically, it’s the textbook definition of money). Long story short – crypto coin arbitrage takes a lot, doesn’t guarantee gains, and will more than likely lead to financial loss. I should also add that these types of trades take a long time to settle, which means that anything can happen in the interim. Caveat emptor!
Pump & Dump online groups
P&D scams are not exactly new. In fact, economic analysts argued that this type of fraud goes all the way back to the early 18 th century.
Though most of these schemes were conducted by word of mouth, emergent techs such as the Internet, social media, and email servicing made it possible for scammers to attract even more investors.
So, what’s up with this P&D scams? In laymen’s terms, it’s a plot aimed at inflating the stock price of certain commodities in a bid to buy low and sell high. What happens is when the scammers dump their ill-gotten shares, the prices will plummet, leading to investors losing their money fast. The same thing happens with cryptocurrency.
Bear in mind that it takes quite a lot of people in order to pull this off. The scammers usually congregate over social media platforms such as Facebook Messenger, Telegram, Slack, and IRC. On average, such a group would total some 100,000 members.
Each is a vital cog in the effort to manipulate the price of altcoins with low market caps. These groups use various tools to monitor volumes, a vital first step identifying crypto coins with the highest ‘scheming’ potential. After that, it’s all a matter of buying low while watching the prices go down.
Social media engineering
Social media platforms are a great way to get to know investors and people who are willing to trade cryptocurrency. However, at the same time, these platforms are breeding ground for fake cryptocurrency traders, scammers impersonating legit traders, and bots.
Remember the golden rule – if it sounds too good to be true then it’s most definitely a scam. It would also be in your best interest to stick to legit communication channels and avoid private messages received on Facebook, Twitter, or Instagram.
Fake emails are, by far, the most ‘popular’ way of luring potential investors. What’s even more unnerving is the fact that they really look like legit emails piped through by legit company – logos, headers, names, addresses, social media handles.
Don’t fall for it; if you ever receive such an email, check every bit of information before acting. For instance, if the email contains phone numbers or physical addresses, you should consider calling the trader.
Try to gauge the offer’s genuineness: are the numbers doable? How about initial coin offerings? Does the trader operate over a regulated cryptocurrency exchange? Has he informed you about liabilities? And, most importantly, see how confident he is about the plan itself. The scammer will always try to boast the plan.
Cryptocurrency fraud – Case Studies
Now that you got the hang of what to look out for, here are some cryptocurrency fraud cases. Enjoy, but watch your back.
The BITPoint Hacking
On the 12 th of July, BITPoint, a Japanese cryptocurrency exchange, reported that over $28 million were stolen in a massive hack attack. It was later revealed that the losses amounted to $19.3 million, but that didn’t make things any better.
The official report revealed that the funds were stolen mostly belonged to the company. The looted assets included Bitcoin, Litecoin, Bitcoin Cash, XRP, and Ether.
Since the company’s cybersecurity safeguards were inefficient, BITPoint decided to postpone withdrawals and deposits for the time being. In addition, Asahi Shimbun, BITPoint’s CEO, has announced that the company will return the assets to the customers affected by the attack.
Binance May Heist
In late May, Binance, one of the largest cryptocurrency exchanges, suffered a $40 million loss in the wake of a “perfectly-orchestrated” hacking attack. The authorities pointed out that among the assets stolen by hackers were 2FA codes and API Tokens.
A total of 7,000 Bitcoins were stolen and several high net-worth accounts have been compromised. That did not put the company of business, of course, since the stolen assets were roughly two percent of all of Binance’s holdings. The exchange announced that it will be using part of its self-insurance funds in order to cover for the loses.
What happens when six hackers get together? They steal $27 million worth of Bitcoins. According to a Europol press release, in late June, five men and one woman were detained following a 14-month-long investigation which involved law enforcement officer from the United Kingdom and the Netherlands.
The report revealed that the six suspects were part of criminal ring responsible for the theft of $27 million from 4,000 people. The method used was typosquatting, which involves the use of clandestine cryptocurrency exchanges in a bid to tap into the victim’s cryptocurrency wallet.
Fall of the Kraken.
Earlier this year, Kraken, one of Bitnance’s competitors, was hit by a cryptocurrency price drop last year. This flash-crash resulted in the coin’s price plummeting from $8,400 to a mere $75. At the time, the company believed that the sudden crash might have been caused by a glitch in the system.
However, that didn’t account for a high-profile’s wallet being hacked and emptied. The subsequent investigation revealed that glitch and hacking were related. Furthermore, the suspect managed to obscure 1,200 bitcoins or the equivalent of $10 million before being apprehended by the authorities.
GateHub XRP Heist
On June the 6 th, a group of cybercriminals managed to steal $10 million worth of XRP coin from cryptocurrency exchange GateHub. The authorities revealed that the amount was stolen from 100 compromised Ledger wallets.
Although the account holders were contacted and reimbursed, the investigators have yet to produce any suspects. In addition, out of the $10 million that was stolen from GateHub, only $200,000 were retrieved.
Bitrue Hack Attack
During the same month, another cryptocurrency exchange has been hit by a hacking attack – Bitrue, a Singaporean crypto company, lost over $4 million.
According to the authorities, sometime in June, the unauthorized access occurred. At around the same time, Bitrue’s platform reported that 9.3 million XRP and 2.5 million ADA were transferred to an unknown wallet.
The subsequent investigation revealed that the cybernetic attack was possible due to a system vulnerability that surfaced after the company’s Risk Control Team performed a 2 nd review process. Although the assets are irretrievable, the company has reimbursed all the affected parties.
Tips to avoid cryptocurrency fraud
Quite a lot to take in, isn’t it? What can I say? The world’s a wonderful place; the question is now how can one protect himself against these threats. Check out these awesome tips.
Research, research, and even more research
The best way to avoid cryptocurrency fraud is to do your homework before investing your crypto coins. There’s plenty to choose from – in fact, there are over 500 online exchanges.
So, in order to avoid being scammed, take your time to research the exchanges: read their blogs, look at the conversion rates, gains, ICOs, over-the-web security protocols. For extra safety, you could shoot an email to support or a company’s representative to ask about the exchange.
Figure out a way to store your cryptocurrency
Buying and trading crypto coin is only the first step. Next along the lien would be figuring out a way to store your digital assets. So far, there are two ways to store cryptocurrency: working through exchanges and digital wallets.
Exchanges work very much like traditional banks: they offer deposits, accounts, and, of course, charge fees for deposit management and transactions.
As for the second storage method, digital wallets are to cryptocurrency what Revolut and Payoneer are to fiat currencies. Evidently, the decision’s entirely up to you.
Know the tell-tale signs of fraudulent ICOs
As you might have figured out by now, fake ICOs are a scammer’s weapons of choice. Of course, none of this would be possible without someone naïve enough to believe this stuff.
Anyway, in the case of ICOs, you can easily figure out if the project’s legit or fake by taking a closer look at the white paper for signs of forgery. These include:
Fraudsters are more likely to copy an entire whitepaper and pass it as their own rather than writing the whole thing from scratch. Just copy-paste the whole things into Google and the search button. If you see the same thing elsewhere, it’s more than likely that you’re dealing with scammers.
No team members
Most exchange presentation websites feature a media section that contains info about the members of the team. Look for any inconsistencies: incomplete descriptions, stock photos, odd-looking contact details.
The websites would look like they were made in a hurry. You know what I’m talking about.
Since these websites were made for one purpose and one purpose only, it’s obvious that the person or persons behind the scheme won’t spend time worrying about details such as blog posts, landing pages, or newsletters. Take some time to read a post or two. Lack of proofreading alone should be a major red flag, one that may point out that the website is, indeed, fake.
Staff reluctant to answer tough questions
Even the most experienced scammer cannot dupe a crypto-savvy user. So, if you decide to get in touch with a member of staff, start asking questions. The more technical they are, the better. A legit employee will be in the position to answer every question related to the product, whereas a scammer might eschew them.
Boost your online security
While it’s always a good idea to beef up your online security, now more than ever you should take the time to review your cybersecurity habits. I know it’s convenient to trade or buy crypto on the fly, but sloppy practices usually result in compromised personal data.
To his end, I would advise you to conduct every transaction from a secured endpoint. Our Thor Foresight Home product can safeguard your computer and cryptocurrency account against all types of online attacks such as malware, ransomware, cryptojacking, and even bitcoin miners.
On that note, you should definitely consider running a quick scan of your system in order to root out lingering bitcoin miners.
Binance Review 2020: Scam Or Legit? (Complete Guide)
CoinSutra » Exchanges » Binance Review 2020: Scam Or Legit? (Complete Guide)
Is Binance a reliable exchange or is it a scam?
Whats the story behind Binance?
Should You be using it?
Let’s find the answer to all these questions in our special edition of the Binance review.
Binance is currently the most popular cryptocurrency exchange in the world and this is a complete review of Binance exchange. I have also covered about BNB (Binance coin) which is one of the highest growing crypto coins.
It wouldn’t be wrong to say that many of us in the present, or at a certain point in the past, have come face to face with the paralyzing problem of too many choices. And needless to say, the crypto space today compliments that statement to the T!
With more than 2100+ cryptocurrencies and +200 cryptocurrency exchanges to choose from, it can get traumatizing to choose the right ones. The plethora of options on cryptocurrency exchanges can be a headache for both newbies and experienced crypto enthusiasts.
Apart from that, with most of the exchanges being centralized, there is always a looming fear of getting hacked.
However, amidst all the fears and difficult choices to make, one centralized exchange has stood out and certainly made life easier – Binance.
Disclaimer: I have used Binance on numerous occasions and in this post, I am going to tell you everything I have noticed and also the things you need to know before getting started.
What is Binance?
Binance is the world’s largest cryptocurrency exchange. Binance came into existence around 2020
Binance means “Binary Finance”, and as an exchange, it aims to power the future of crypto finance.
It is a centralized exchange and they’re based out of China. It claims to be a better alternative to many other centralized exchanges because they have identified the most major pain points of centralized exchanges and are working rapidly to provide solutions.
Problems That Binance Is Aiming To Solve
These are the following problems that Binance is claiming to solve:
- Poor crypto trading technical architecture
- Insecure platform
- Poor market liquidity
- Poor customer service
- Poor internationalization and language support
Binance’s Answers To These Problems
Binance has introduced and is in the process of introducing, several features to counter these problems.
Some of the features that Binance has in place are:
- Matching Engine – Binance’s matching engine, as claimed in their whitepaper, is capable of handling 1,400,000 orders/second, making Binance one of the fastest exchanges in the market today. So there is no risk of being “stuck” due to matching issues on Binance.
- Device Coverage – They are providing cross-platform trading clients for:
● Web-based trading
● iOS and Mobile iOS app
● Mobile HTML5
● PC (Windows)
- Multilingual Support – In their white paper, they promised that they will launch Binance on all of their user interfaces in English, Chinese, Japanese, and Korean. They have already added support for their website in Japanese, Spanish, and Korean (along with English and Chinese). I would say this is a good start in just two months, and I am sure there will be more languages to come as adding full language support is explicitly mentioned in their whitepaper.
Features and Benefits of Binance:
Spot/Margin and Future trading:
Binance offers trading terminal for all kinds of traders. Be it a seasoned, hobbyist or pro traders. They started as a spot trading crypto exchange, and now they offer Margin and futures trading as well.
Binance offers crypto lending feature where you can earn interest on your crypto holding. They support many coins including Bitcoin, Binance, Stable coins to name a few.
Many of you may be aware of proof of stake coins and you would be surprised to know that Binance also offers crypto staking features. One benefit I see here is, you can also discover some interesting projects that offer staking feature.
Crypto Sub-account (manage account for your friends, family or clients)
How often you wish to have multiple accounts on the same exchange? Well, the Binance sub-account feature is exactly for you. You can use it for creating and managing the binance account of your friends, family, and clients. You can create up to 200 sub-accounts under a single Binance account which is something remarkable.
If you want to trade or use Binance exchange under a legal entity (Corporation, LLP, Pvt. limited) or any other, you can apply and open a corporate account as well.
Buy crypto assets using fiat currencies
Binance has started adding a lot of fiat payment options to enable users across the globe to be able to buy Crypto assets using their local bank account or credit card. The benefit that you get here is, they charge pretty low fees for the same and you can directly start trading or even earn interest.
Binance’s team members have been in both the finance and crypto industry for many years. The team has worked on and operated a number of exchanges, and they have accumulated a large network of partners in this space.
They are clearly not newbies trying to run a scam exchange; they understand the risks and challenges very well.
In my opinion, the Binance exchange and BNB tokens are here to stay.
- From a subjective economics point of view, Binance’s business model makes sense, and it is based on the simple law of supply and demand. So it wouldn’t be wrong to say that the price of BNB will continue to go up because people want to get a fee discount while trading on the Binance exchange.
- Another observation is that Binance is expanding very fast and is already in the top 10 cryptocurrency exchanges by volume – a feat worth mentioning for a 3-month old exchange.
- It’s clear from their business model that the price of BNB will be strictly driven by their business profits that will eventually be used to destroy 50% of all BNB tokens. To achieve this, they are doing a lot of innovative and creative stuff like the Binance Angel Program, the Community Coin Per Month, the Binance API Coding Competition, and various giveaways.
- Binance is the only exchange that gives NeoGAS to its NEO HODLers which is a good adoption sign for NEO and Binance investors.
- They are launching themselves in various international languages across all platforms which is a good strategy for mass adoption.
- And last but not least, the way Binance is expanding and its volume is growing day by day, I wouldn’t be surprised if they are among the top 5 exchanges in terms of volume in the next six months. In just 2 months, they have built a list of 50 cryptocurrencies that are being traded with a nominal 0.1% trading fee – far cheaper than most of its competition.
Binance Exchange Review 2020:
Binance started in China in mid-2020 but shifted base to Hong Kong and now in Malta after the China government banned cryptocurrency exchanges.
It is a centralized exchange but a reliable one because despite handling the volume it does on a regular basis, there have been no reports of it being hacked or going down.
Binance, being a centralized exchange like Bittrex and Poloniex, adopted a unique way of funding themselves through the ICO, which concluded in July 2020. And with the money raised, Binance has to an extent and continues to solve the pain points of centralized exchanges that they had identified and elucidated in their white paper.
Some more important points…
Binance offers both (Crypto-to-crypto) and (fiat-to-crypto) exchange, and you will find a very good market for these pairs with enormous volume and liquidity on Binance.
Currently, Binance is one of the top 3 exchanges in terms of volume on CoinGecko.
They have their native Binance tokens too which I will explain further in this article.
Binance Registration, Login and Security
Binance’s registration process is quite straightforward and your account gets activated immediately. To get started with Binance, you need to register using your email ID following which you will be granted the basic account in which you have a withdrawal limit of 2 BTC per day.
After you register, you can log in using your email ID and password to be able to see the screen below, where you can, and MUST, setup your 2FA and SMS authentication for extra security (highly recommended to do so).
You can also use this dashboard to submit additional KYC documents to increase your withdrawal limit from 2 BTC to 200 BTC.
After you log in and have set up all the security measures, go to Binance’s home page to see this dashboard.
On this dashboard, you can see markets for BTC, ETH, BNB, and USTD.
Binance’s dashboard also gives you access to both advanced and basic dashboard versions. The main difference between the advanced and basic version is that the former has more charting tools and compact UI with more parameters to analyze whereas the latter has a more open UI and less charting features.
The basic version looks like this:
Binance Mobile Apps
The Binance mobile app is absolutely fantastic, to say the least. I came across the Binance app when I was searching for options to trade on the go.
To reiterate, the Binance trading apps for both iOS and Android is the best you can find in the market.
To use the mobile app, you need to create an account on Binance for which you can register here. Once you are registered, you can download their iOS or Android app and start trading cryptos from your smartphone.
Do watch this video tutorial to get hold of how to use Binance mobile apps.
Binance Exchange Fees Structure
The fee structure on Binance is also very competitive compared to its peer exchanges.
The standard trading fee is 0.1%. However, to withdraw different currencies, this fee schedule is applicable.
Also, you can reduce your trading fee significantly if are a HODLer of Binance tokens (i.e. BNB). When you use BNB to pay for fees, you will receive a significant discount (as per below).
You can enable this feature of 50% trading fee reduction from their dashboard here.
Not just this, holding Binance tokens itself is rewarding because their price appreciation is almost certain in the long run considering Binance burns a decent amount of BNB tokens every quarter to economically reward its holders.
Here is the updated trading fees of Binance, as per March 2020:
Note: I have been a HODLer of BNB tokens ever since it was $2 per token.
Binance Supported Cryptocurrencies
Binance supports a flurry of cryptocurrencies and has enormous volumes on it. Needless to say, you don’t need to worry about the liquidity of your funds.
You will find all the popular cryptocurrencies like BTC, ETH, DASH, LTC, NEO, ETC, XRP etc on Binance and also some rare gems like Dragon chain, Vechain, and Neblio.
The volume on this exchange that has more than 260 cryptocurrencies listed on it is 165,711 BTC ($ 1.4 billion), an impressive figure.
Binance Supported Countries
The Binance exchange is accessible to users all around the world. However, there are certain parts of the world that have a high concentration of their user base:
These are their latest traffic stats which show that Binance is accessible in most countries.
Update: Binance is no more available for U.S. Citizens. Check out Binance alternatives for U.S. Users.
The support is also exemplary if you compare it with its peer exchanges. To emphasize, Binance provides support in 7 languages!
As of now, there is no customer care number, but they do have a support portal where you can submit your requests. Expect the turnaround time to be 24-hours.
You can also use their live chat support option as shown here in the restricted operating hours.
Apart from that, their FAQ section is quite robust and if you go through it well, you may not really need to contact their support.
Additionally, the Binance exchange keeps on holding various competitions, prize distributions and other initiatives for its users, some of which are:
Now they have launched 3rd party project reports that are having insights of institutions to aid investors to make better decisions.
Binance coin: Everything You Need to Know
BNB Coin Total Supply & Business Model
The first question that came to my mind while reading Binance’s whitepaper was:
What’s the need of an ICO for an exchange?
The answer to this is based on their unique business model, which is self-sustaining and easy to understand without any complex mathematical formulas that you generally find in a whitepaper.
But before discussing their business model, it’s important to understand their token economics.
Binance Coin (i.e. BNB) is an ERC20 token with a fixed supply of 200 million. Out of this total supply, 100 million BNB tokens were distributed during the ICO.
Here is what the final allocation breakup looks like:
In my opinion, one of the reasons for having an ICO for Binance was to accelerate the development process while catalyzing its mass adoption through fee incentivization for its users. This puts everyone in a win-win situation.
This fee incentivization is made possible by BNB tokens which are an integral part of this exchange. You can use BNB to pay for any fees on the platform, including but not limited to:
- Exchange Fees
- Withdrawal fees
- Listing fees
- Any other fee
Apart from this, when you use BNB to pay for fees, you will receive a significant discount according to the below-shown schedule. You can see their fee structure in detail here.
And last but not least, to ensure that everyone participating with Binance ends up in a win-win situation, every quarter they will use 20% of their profits to buy back BNB and destroy them until they eventually buy 50% of all the BNB (100M) back.
They announce all buy-back transactions on the blockchain and will eventually destroy 100M BNB, leaving 100M BNB in circulation.
This is meant to drive up the price of BNB tokens.
How to buy BNB Coin (Binance coin)?
The best place to buy Binance coin is from Binance exchange itself.
Once you have registered an account, click on funds and deposit Bitcoin.
If you have not purchased Bitcoin yet, Buy bitcoin now from Coinmama.
- First, deposit BTC or other coins in Binance.
- Once the coins are deposited in your Binance account, go to the trade section and select BTC/BNB trading pair from the right-hand side of the dashboard.
- On the left-hand side, you will see the order book and the prices at which buying/selling is taking place. You can select your buy price accordingly from the left order book and place your order by putting the relevant amount of BNB coin you want to buy.
Below is a list of established cryptocurrency exchanges listing BNB:
- Binance (obviously) -Supported pairs are BNB/BTC, BNB/ETH
Conclusion: Is Binance Legit & Safe?
Keeping all these facts in mind and my experience, I can confidently say that no exchange even comes close to Binance in terms of security, volume, and community initiatives.
Also, as I said, their mobile apps are an absolute delight to use.
Even during the crypto mad rush in December 2020 when exchanges like Bittrex and Bitfinex closed their doors, Binance was the last exchange that stopped taking new registrations.
I’d say, to conclude, if you have not used Binance yet, you should start right away.
Have you used Binance for buying, selling, and/or trading BTC/ETH? How has your experience been? Let us know in the comments section below. Want me to review any other cryptocurrency exchange? Let me know in the comments.
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How to Identify Cryptocurrency and ICO Scams
Dozens of new cryptocurrencies launch each month, and alongside these new tokens and coins comes a series of initial coin offerings (ICOs). The appetite among a broad pool of investors for these opportunities has grown, even in spite of the fact that cryptocurrencies were battered in 2020. All of these factors combine to entice scammers. After all, if investors have proven that they are willing to throw money toward a highly speculative cryptocurrency, they seem to be equally likely to invest in fraudulent tokens or ICOs.
For the cryptocurrency investor looking to make the most of the host of new investment opportunities while remaining safe from fraudulent ICOs and sketchy coins and tokens, the prospect can be daunting. Blockchain and cryptocurrency technology is developing at a rapid pace, and even experienced investors may find it hard to keep up with the terminology. While there’s no guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful, the steps outlined below can help you to be as sure as possible that you’re not falling for a scam.
Get to Know the Team
Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it’s increasingly common for scammers to invent fake founders and biographies for their projects.
The best protection against this fraudulent tactic is to thoroughly research the individual team members of a project before you invest. It’s a bad sign, for example, if you’re unable to find any information about a particular developer or founder on LinkedIn or other social media outlets. Even if profiles do exist, check to see if their activity seems to match up with the number of followers and likes they accrue. Individuals who rarely engage with their followers and yet have thousands of fans may not be real.
Beyond determining whether the development team is real, it’s important to make an effort to see if their qualifications measure up. Do the founders have the experience they claim to have? Is it relevant to the current project at hand?
Pore Over the Whitepaper
A cryptocurrency or ICO whitepaper is the foundational document for that project. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan.
The first step toward analyzing a whitepaper is to read it very thoroughly. Check to see if the whitepaper has complimentary resources as well, including financial models, legal concerns, SWOT analysis, and a roadmap for implementation.
Companies that don’t offer whitepapers should be avoided at all costs. Still, it’s possible for a fraudulent company to put forward a convincing whitepaper, as was the case with PlexCoin; this company managed to raise over $15 million before the U.S Securities and Exchange Commission (SEC) stepped in to shut it down. A whitepaper should answer all of the questions a potential investor might have about what sets this particular project apart from its competitors, how it aims to be successful, and the measures it will take to achieve its goals.
Look to the Token Sale
Any ICO will depend upon a token or currency system in order to facilitate the crowdfunding process. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view. Look for the token sale figures as the ICO is ongoing. Better yet, watch the token sale over time to see how it is progressing. If a company makes it difficult for anyone to chart the progress of its ICO, this is a major red flag. Some scam ICOs will hide their token sale progress under the pretense of individual contribution addresses; this prevents potential investors from seeing exactly how much has been raised and how much time remains in the sale. In some cases, this might be an effort to generate a sense of urgency among potential investors, even if there isn’t evidence of a successful sale going on at the same time.
How Feasible Is the Project?
While it may seem obvious, ICOs, and cryptocurrencies with the greatest chances for success are those that have the fundamental structure to outlast their competitors. Many launches, even highly-publicized ones, have sputtered after initial interest faded. Your best chance of a successful investment relies on a company having an achievable, feasible set of aims. The company should have a compelling concept for the time being, but it also must be able to carry that concept over into execution over the short and long terms alike.
Going along with the question of feasibility is the issue of transparency. Companies that have outstanding concepts and models are more likely than others to want to be as transparent as possible with the broader community. Look for companies that aim to keep potential investors up to date with regular, detailed progress reports on a company website or on social media. It’s also useful to look if a company has a timeline for what has taken place in the development process, as well.
Even the most successful ICOs and cryptocurrencies are slammed for being fueled by speculative investing. The idea of getting rich quick on an investment in a hot new project is tempting enough to draw seasoned investors and beginners into risky areas. Keep an eye toward caution as you look for new investment opportunities in the ICO and cryptocurrency spaces. Be aware that projects sounding too good to be true likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment, and always ask questions that you can’t already find the answers to. The cryptocurrency and ICO spaces offer tremendous opportunities for investors who have done their homework and are able to make sound investment decisions. They also feature pitfalls, which can lead to large amounts of money being lost due to scams, frauds, or even legitimate businesses that are simply poorly designed and unlikely to succeed.
Cloud Token Wallet Review – Is It Legit Or A Scam?
- Very Profitable, especially if building a team
- Can Instantly Withdraw Funds As Crypto Or In Benefits Such As Hotel Stays
- Over 1 Million Users And Growing Fast
- Excellent Road Map Of Extra Benefits, Products And Services
- Recruiting Can Be Time Consuming, Although Is Well Worth The Effort
- Extremely High Risk – Only Invest What You Can Afford To Lose
1,000,000 Users And Counting!
This is an honest review and overview of Cloud Token Wallet. If you are considering investing then you would benefit hugely in being part of our team. Why? Well, the real value in this wallet is in building a team, and to do that you need people like Tim (in the video) that can provide useful content to use AND do live Q&A’s both for you and your team so that we all grow together.
To become part of our team, and get full support from us please use Cloud token referal code (id) 0798447074.
Here is the full review video, with Q&A at the end. I encourage you to watch the video in full to get a full underanding of Cloud Token and why there is a good opportunity here. To get the App go to your mobile phones app store and search “cloud 2.0”.
To Join Our Team And Become A High Earner Use Code referral code 0798447074 .
Video transcript below. To add a comment please scroll to the bottom of the page.
Cloud Token Introduction
Welcome to all of you. To those that are here and to those that are new, I’ll share my screen to start with so that we can get started. So, a little bit about myself. I’ve been in crypto for about four and a half years now. I was buying Bitcoin when it was under a thousand dollars and involving myself in lots of things. In 2020, I watch Bitcoin go up to 20 grand back down again, investing in a multitude of different ICOs, opportunities, lending platforms that came out. Some work, some didn’t, but I do believe we’ve got a great opportunity here with Cloud Token.
What is Cloud Token?
For those of you that are new, it’s a place where you can store your cryptocurrency. At the moment, if you have the crypto or holding it, you’ll be holding it on an exchange-like finance or Poloniex, Bittrex etc. And those exchanges don’t pay you to hold your crypto there, you just have the ability to buy and sell other coins with your Bitcoin, etc. But you’re not paid to have it there, the same as if you don’t have your money on an exchange or your crypto on an exchange. You’ll hold it on a ledger or trestle; which are called cold storage units. So they’re not online, they’re not hot wallets, so they can’t be hacked. And again, you don’t receive anything there. So what Cloud Token enables you to do is move those assets into your own wallet held on the phone, and you are rewarded with tokens for the company trading with those coins, and then you receive your Cloud tokens, you cash them into other crypto, and bring them out daily. So it’s a smart little ecosystem.
Rules for Investing
I think this is important for everybody now and in the future. Because there are lots of opportunities always coming to light and I failed in a whole chunk of them years ago because I didn’t have a setter for rules. I always sort of felt “Oh well I’ll give it a go, it sounds good.”, chuck my money in and then the bitcoin gets stolen or scammed away. I trade quite a bit on crypto exchanges and I have trading rules where I’ve had my TA, my technical analysis, of support/resistance, fibs, all of it, it’s all laid out. I have my entry and exit points, my leverage that I’m prepared to put in, and that way if I follow that plan, the chances are I’m going to succeed. And if it goes against me, my losses are set as well. But when it came to crypto, I didn’t have anything. So I set this up at the beginning of the year, really. And I’m in three projects now that are all producing returns, because all of my questions here got answered.
The first one is to have full visibility of the owners. There’s a reason for that, because if somebody is coming or launching with what is called an ICO, that they will have a roadmap and a whitepaper. And they will say “we’re trying to generate a hundred million dollars. invest into it, our coins going to do this it’s going to be worth that.” etc., and there are no owners behind it. And the only reason that an owner who’s trying to generate that amount of money, who wouldn’t put his name, and be proud to put his name on it, is he’s just going to scam your money.
So very important for visibility of the tech team for exactly the same reason.
Full visibility of the project offering. What it is and how it’s to be sold.
What does the project have there’s going to create mass adoption and guaranteeing success? So you’ve got to look at where you’re at in the market, what the project is, how it’s going to develop and grow into the future to see if there is some sort of longevity with the project.
If the investment is in crypto, then full visibility of the funds up on the block need to be there. there’s no selling into what is called a ‘shit coin’ first, to then hold in a project. That was the trend back in 2020 with Eighth Connect, NeoConnect, Bitconnect, all of those things, Davorcoin. You put in your crypto, they sold it. You had their coin, it went up and down, and they had your crypto. They shut the thing, and they ran off with billions of dollars doing that.
Full visibility of your funds when you invest. So if you put your money into a project and you need to be able to see that it’s there in a wallet on the blockchain. If you can’t, don’t enter. If you change your mind at one turn, you need the ability to remove it. You’ve got to have that ability as well, 24/7, and access to remove those returns daily.
Proven track-record of everybody involved in the project. That’s massively important. They need to have visible Facebook profiles, visible LinkedIn profiles, great track record. So that you know that what you’re investing in is with people that know what they’re doing.
Value added services and products either established or about to be that can generate additional revenue into the future. It’s no good being reliant on just a one-trick pony. You need to have a
full suite of products that can continue to grow and develop.
So, these are my nine points. You could probably add some more to that, but pretty much that covers everything. And if you get a nose to some of those questions, I really wouldn’t recommend that you enter into the project.
Who we are
So with that said, who are we? or who are the owners of Cloud Token. This chap is called Ronald Aai.
Is Cloud Token a Scam?
So if you’re new here, your first bit of research is not to go into YouTube and Google “is cloud token a scam?”. That’s not called research. Your first bit of research is to go to LinkedIn and pick up Ronal Aai’s background. So you understand this man’s history and abilities in running a project like Cloud Token. He has a huge resume, like it is honestly huge. From building mobile phones, payment gateways, blockchain capabilities, lots of stuff. And he also won the world blockchain forum for the innovative blockchain project of the year last year, okay? For developing Corous, which is a fourth generation blockchain.
Generations Of Cryptocurrencies
To tell you what that means, Bitcoin is our generation one. It was the first one out in 2009, it can transact at about seven transactions per second. So unusable, really. On a credit card to go and buy a coffee and stand there for an hour waiting for your transaction to be approved.
The Second-generation that came along was Ethereum, they introduced two major things. One was smart contracts, So 90% of all the old coins on the market used the Ethereum smart contract with the ERC-20 token. And the other thing that they did was to develop something called Segway. It’s a segregated witness where the proof of work element out of the transaction was removed from the blockchain to therefore speed up the scalability issues of the nodes all approving that the work took place. And they transacted about fifteen transactions per second.
Generation three was Cardano, EOS, and Ripple (XRP). They can transact at a few thousand transactions per second. Ripple (XRP) is centralized though, so that means it’s controlled. That’s the nuts and bolts of it.
Blockchain is about being decentralized; no one point of control. And surprise, surprise, who’s behind Ripple (XRP)? The Bank’s, there’s a surprise. So it’s not my favorite coin, but they can transact at a few thousand transactions per second. The issue with them all is the more people that use them, the slower their network goes. So Ronald decided that he would develop a blockchain technology where the more people that use it, the faster it goes. That would make more logical sense, wouldn’t it? So every person that downloads the Cloud Token app onto their phones, they act as a node on the network. And every thousand gets us to generate about twenty two and a half thousand transactions per second. We have well over 900,000 apps downloaded now, so we could transact it like 20 million transactions per second. Every little node interconnecting with everything else to speed everything up. These are MasterCard, they transact between 6 and 700,000 per second. So they look like little baby in nappies compared to the technology that Ronald’s developed here.
We’ve got high-level recognized partners. Those that were around last weekend for the big launch, all these products are well aware of those I will cover them in a minute. We’ve got a transparent team and offices now in KL. And we have a real roadmap. I’m going to show you our roadmap in a second. Most of them as I said to you before, with their whitepapers and roadmaps, they have you know little time dates all along. And they’ll say “give us a hundred million and we will do our best to build this ecosystem for you”.
Cloud Token Roadmap
What you’re going to see on our roadmap has already been developed. What we now need are more people to come in and start using this ecosystem, just to grow it and develop it around the world. When we launched back in May, we had our Cloud Token 1.0 Wallet. In June, our Jarvis bot was paired with an algorithm called Verum. Now Jarvis is quite unique, It’s a “triangular arbitrage bot”. So it’s the first of its kind, which means it can triple pair trade. There are 200 of them now on about 32 exchanges, and Verum is the algorithm. So it looks for volume, it looks where it can; increase its volume on another exchange by selling into it or buying into it. So it’s a volume based algorithm, and that’s how it is growing. We also have additional projects coming to light.
Howell hasn’t been developed yet, all our other ones have. So we have the launch of FRIDAY , which is for our whales. You need to have a minimum of 3 to 5 million US dollars to be part of that project, and you get the API keys or Jarvis does it. It trades with your API piece on the exchange for you. We’ve got our version two launched last weekend, there are some bugs in it. Those of you that were here in June would fully understand, or in May, would understand what those bugs are from the first app. Because we have exactly the same things there. So you need to be patient while they make little fixes, especially on some of the buttons, they kick you out of the app, that sort of stuff. So they’re getting it sorted, you just need to be patient.
Our KL office and support is now open and functioning. There were about 6,000 people who went to that. We have our debit card released, also with MasterCard. We’ve got a crypto-to-fiat solution, also coming out towards the end of this year. It’s part of our Atomic Swap
Process, part one and two are active now. We have Rogue launch for our third world countries, it’s like a lottery compounder and you get your money back at the end of 30 days if you’re not part of the daily winners, there’s no losing in it. We have our data SIM cards that were released to all those people, that gives you unlimited data in any country worldwide. And there’d be available for general use by the end of this year, as well. We have our merchant network and point-of-sale system. So there are tie ups with Grab, which was also announced, so now you can exchange your CTOs for Grab credits. We have our point-of-sale machines. So now we have our Travelocity and travel app launch, where you can book your hotels. Flights and cars are coming with that.
So there’s a huge ecosystem being built around Cloud Token. The first part of it is where you earn your Cloud Tokens and the second part is where you can spend them.
How To invest in Cloud Token?
How does it work for us? Well, You deposit your Bitcoin or crypto into the super wallet, that’s the first thing. So transfer it across into your wallet. You then select projects and click Jarvis, or Rogue if you want to do that one as well, you can do more than one project, and agree to the terms and conditions. You’re then loaning your crypto into the trading Bots. So you now don’t have control of your crypto, the company does. But you have full transparency of them 24/7. If you want to remove your crypto out of the Jarvis; you swipe left on your screen, put in your 6-digit payment pin, put in your 2FA and your funds are back into your super wallet and under your control. And you can do that 24/7. The funds are being traded, as I said earlier, on 32 crypto exchanges,200 Jarvis bots.
All exchanges that your coins are on are fully insured against hackers. So for example; back in April, finance got hacked, 5,000 Bitcoin, right? If that were to happen again and we lost 5,000 of our Bitcoin, they would be replaced. Because the percentage of all of their transactions go into like a reserve pool where they buy additional Bitcoin and store them on a cold wallet. And then if they are hacked, then they have the coins to replace. And all of those exchanges function, that option to protect us with our crypto. The Jarvis trades daily with the balances of all of our coins. So my Bitcoin, your Bitcoin, Ethereum-like coin, whatever. It’s all loaned to Jarvis and it trades with it. That’s in excess of 650 million US dollars. Every day, that’s 650 million makes between 20 and 60 million, and that goes into our profit pool.
This is not a “paid Peter by robbing Paul”, we’re not waiting for new people to join in order to pay those from yesterday who joined. Our ecosystem produces at twenty to sixty million. We get paid the equivalent reward tokens based on the amount of crypto we have in there, and we can then cash those out. That’s how it works. You’ll receive between six and twelve percent a month, in cloud tokens, that pays you daily. And the reward token is actually derived, or the value of it, from the funds in the reserve pool multiplied by the number of cloud tokens actually in existence within all of our wallets. The price now is 50.48. So that means that we’ve gone up another half a percent since last week or one percent, so there is continual growth all the time, and we can all cash out at that level.
Income, there’s an important site here. There’s two ways you can make your income, one is personally yourself by having your own money in there and the other one is by building a team.
But before I can go through, those I have to give you a disclaimer. Because we’re not financial advisors. The ideas presented are our only experience on how to profit in business, they are not financial advice for you. We are not a financial investment company and we make no representation or guarantees of any income that you can make, okay? I personally don’t recommend you outlay any money whatsoever that you cannot afford to lose. I’m not telling you you’re going to lose your money in Cloud Token, but you need to be aware if you put $500 in you, could lose it all. You need to understand that. Don’t rush into anything. Do your own research, massively important. YouTube is not a place of research. There they get paid about $2.50 every time you click on a scam video. They’ll trash Cloud token to promote their own, and they will do that with every single opportunity that’s out there. You can google them all, there’ll be scam videos to tell you they’re all a scam and to join this one because it isn’t. That’s how their industry works.
Myself or any team members are not liable for any damages, expenses, or losses that you can suffer from the information. So I’m giving you this presentation today, and I’m telling you my experiences of it and how it all works. I’m not liable for anything. I’m trying to share this with you. As with any business, your results may vary. It will be based on your individual capacity, your business experience, expertise and level of desire to succeed. There are just no guarantees at all concerning the level of success you can experience. Our success depends on our dedication, doesn’t it? The desire and motivation to share and go out and win.
Tokenomics And Affecting Prices
I went through this sort of briefly earlier, that the tokenomics of Howard, it works. It’s very simple. It trades our asset and rewards us with Cloud Token. They’re a reward Token. We are not an ICO, we are not a security token. So you will never find a clipout Token listed on an exchange, because we don’t need to be. We’re just rewarding our people internally with our tokens that can be exchanged for products or services, or into other crypto.
Also affecting the price of cloud token in the future now will be our travel program, the master cards, our VIP program and the profits from those travels and MasterCard things. All go into the reserve pool, which help put the price of Cloud Token up. That’s how our ecosystem works. So with the bots, your money in the java spot, you’re going to earn six to twelve percent per month every single month. I have a slide that just gives a further example of that in a minute. If you want to share this, you will receive a hundred percent match on anybody you personally bring in.
How Does Cloud Token Make Money?
So let’s say somebody, one of your friends, deposits $1000 into Cloud Token, they’re going to earn at 10%, a hundred bucks that month, pay to them in cloud tokens so they can cash out. The company also gives you the same hundred dollars as well. On your second level, you’ll get 50%. And on your third level, all the way down to 21, you’re going to get 5%, and then buy well. For all of those that weren’t at the show, you will then be able to put all of your Cloud Tokens onto your MasterCard, whatever value they are. So if you want a $1000 on there, you would technically give them 2000 Cloud Tokens and your debit card here will be topped up with a 1000 US dollars on there. So on the Jarvis bot, once you’ve selected it, you will see that your Bitcoin is loaded on here, once you’ve loaned it onto the Jarvis bot. you’re going to see 6% to 12% withdraw and cancel at any time.
So I want to give you an example: Let’s say you’ve got 20 grand in your Cloud Token wallet, that’s two Bitcoin. You’re going to receive 10% a month, that’s $2,000. If you’ve got 20 grand in your bank account, you won’t earn $2,000 in ten years. That’s a 2%. If you’re at 1%, it’s going to take you 20 years for you to be receiving 2,000 bucks and we’ll pay it to you in your first month. Bit of a no-brainer, really. Paid daily, that’s about $67. You’re going to get that in Cloud Token. So at 50 cents, that’s what? 134 Cloud Tokens every single day. Around 4000 Cloud Tokens a month? And then it’s up to you what you do with them. You can convert them into your debit card when you get that. You can exchange them for your Grab credits, you can now go on to the travel portal and exchange them for hotels around the world, I think there’s over 400 hotels on there currently listed.
Benefits of Sharing
Benefits of sharing this is where it gets interesting. The company has rank promotions. So once you have built a team under you with
$200,000, you will qualify as a C1. And what that does it gives you an extra 5%, which is actually a huge amount. Because you’re already receiving a 100% on your first and 50% on your second. But on your third to twenty one, you’re getting 5%. And now that’s doubled. As a c1, you’re getting 10%. 5% here, and 5% here. As a c2, the same again. Except this time you’re going to get 10%. C3, 15%, C4, and so on.
And monetary wise as a seed one, you’re going to probably earn somewhere between one and about 500 US dollars a day, depends on where those people are located on your first, second, and additional levels. Once you get to C2… I’m a C2 now, I have over a million U.S. dollars in my team. I have three people that are c1, so I have three people there with 200,000 or more underneath them in their teams. And my next level is to get to c3, so I need three people that are c2’s. Monetary-wise, I earn around about 2000 Australian dollars every single day now. So it’s about 14,000, just under 60 grand a month, which is probably what most people earn any year. And I’ve done that since joining on April the 20th, so it’s life changing money you’re earning. An annual income in a month as a C2, and that will grow. Because before I get to see through C3, my downline volumes probably going to be somewhere around two and a half million. So I expect to be somewhere around five to six thousand Aussie dollars every single day by the time I hit C3. C3’s are earning 20 grand plus a day. Luigi has gone to C4, it’s up to 50,000 US a day. C5’s over a hundred grand. Luigi got an award for getting to C4, he also got an award for earning over a million dollars in Cloud Token. And there were a number of people that got up to receive that award. And that’s not paid to him by selling my Bitcoin, it’s paid from the trading that Jarvis is doing, that’s what pays us all. The money that goes in there, pays every single one of us every single day.
How has Cloud Token performed?
This is a good one to show. How have we performed? Initially at the start of May, the price of the token go up all the time. Because new people are joining permanently and they’re not withdrawing. June, we were at 44%. July, we were at 47%. Come August, our price started to fluctuate. So we were at 48.4% at one point, then when we dropped down to 42%, then we went back to 45%. We had over a 100 million U.S. dollars withdrawn over a week, but our system is there to do that, that’s what it’s there for. If you want your money out, take it out. If you want to leave it in, keep it in. We were 50.12% on the 8th of October, now 50.48%; just four or five days later. So it’s a healthy increase, and now it’s one that starts functioning as an ecosystem with people sometimes holding, people sometimes withdrawing. We will see a general up-and-down movement of the price.
Accumulation of Cloud Tokens
Let’s say you got hold of 25,000 and generated that. And we reached the $10, You’ve earned yourself a quarter of a million, holding 25,000 cloud tokens in your wallet. At $20, it’s worth half a million. Nice amount of money to receive. My target is for 200,000 cloud tokens. If we got to $10, that’s 200,000 in USD. To me, that’s nearly three thousand Australian dollars, that’s the mortgage paid , cars paid, and enough money for the rest of my life for holidays and enjoying things. Just for having those tokens and our ecosystem building it to $10
Why Cloud Token?
So, why us? Well, there are no packages to buy. Those of you that have been involved in network marketing and those sort of things before, you have to buy ongoing monthly packages on autoships. You fill your garage up with this stuff and then have to flog it off to your friends and relatives in order to get your money. None of that, no membership fees here, no autoships. There’s no contract. Take your money out 24/7. You earn passively without sharing, this is a massive one for those network marketing people that just don’t want to go and talk to anybody about anything ever again. Put your money into this, leave it there, and it will earn you between 6% and 12% every single month. So you brought your money back in ten months, haven’t you? Based on that? That’s what it’s made you over the course of ten months. And it generates our main revenue from the arbitrage trading, and now from all the other projects as well. That I’ve just gone through with you. And the Tokenomics that I went through, that’s what drives the price. So the amount of assets creating a profit, that gives us the cloud tokens. And the price is derived from the amount of cloud tokens and the amount of money that we have in the reserve pool.
Cloud 2.0 Celebration
At the celebration last week, we launched our Point-Of-Sale. So that was available there, you could see that being used. There are some tie ups taking place now with some large organizations around the world for that. We launched our travel program with Travelocity. Rogue And Friday will launch. Our prepaid cards were given to everybody that pre did their KYC and they collected their cards, our MasterCards. The data SIM card was released, it’s part of the pack for everybody that was there as well. They’re going to be readily available to anybody that goes or by the end of the year anyway, and a lot more that’s happening and going on.
So that’s Cloud Token in a nutshell. If you guys have got any questions, I’m just going to show you a couple of bits. This is our data sim, I’ve now got mine. And you can just put this into your wallet, into your phone, and it will be valid for seven days, giving you unlimited data. And the plan is that you will be able to have these, they’ll be a fee for it, they’re talking about something like $200 that you actually keep there and it will be self-generating. Say, you will basically have unlimited data every single month for keeping $200 in the system, if that makes sense. It would be life-changing in the telecoms industry. And this is our little security card, so you can now log in to your phone, no more putting digits in. So everything can get stored on here for you. I don’t have my debit card because you need a KYC for that. But I have these two bits now, which is great. So yeah, if any of you want to unmute yourself so I have some questions.
4 thoughts on “Cloud Token Wallet Review – Is It Legit Or A Scam?”
It might sound crazy to people but it really is possible because of the way Bitcoin online trading works. When I started out, I had just £250 in my account, so when the prices rose I earned off of the £250. However, once I had £35,000 I withdrew £30,000 and left £5000 in. This enabled me to earn a much larger profit on the way down. Although I wish I had invested more. Thanks to Nation-crypto and Google Nation-crypto let your money make money for you.
People should only invest in Cloud Token what they can afford to lose.
This is clearly explained the working of cloud token and people still have doubts. Invest and earn money.
Thanks. You can’t deny the risks, but even so the returns are good and the profits are stable.
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