Perhaps when during course of research on projects concerns are uncovered then shared with community for confirmation and hopefully preventing financial harm to our fellow community members.
Whitepaper: doesn’t appear to exist
- Promises between 31% up to 124% in interest on a monthly basis.
- Basic website doesn’t contain team details
- Basic website doesn’t contain whitepaper / information on how the project works.
- FAQ is small and not explanatory.
- Hard to find any viable information on this project online.
It is simply impossible to guarantee 31% return on investment on a monthly basis, let alone 124%. Anyone that can make that high a percentage in trading or using trading robots doesn’t need other people’s money to do so.
Even if they have virtually no money (say 1,000 USD), they could multiply their money by a factor of 25x in 5 months time due to compounded interest; they do not need other peoples money to do so.
Power of Weak Hands 3D or PoWH3D
This is a ponzi scheme.
I have serious concerns about this project; while this is not necessarily a scam or ponzi scheme per definition the write up of this project raises a lot of concerns.
- The team by and large doesn’t exist on LinkedIn
- The white paper is very unclear and even though I’ve send them a lot of suggestions on how to clarify things (which they asked for), nothing has been updated in months.
- The spokesperson has disappeared (no longer communicates on mail / linkedin / telegram / ToshiTimes) and no longer associates with the project on Linked In.
- Distribution of funds is highly unclear
- White paper raises a lot of red flags (I’ll do a much more detailed write up about this soon)
- Company claims to have set up 12 companies previously in various industries, but none of these companies are listed anywhere in their documentation and when asked no information is provided
The basic premise of the project is:
- Raise money through ICO
- Use ICO money to fund a Payday loans scheme (which is illegal in some countries)
- Charge a higher than average interest rate on Payday loans (+18%)
- Use Payday loan money to build online education courses
- Ask students to buy these courses by investing a minimum of 50USD (this is in Mexico)
- Students can invest for 6 - 12 - 24 months and will receive a monthly interest on investment
- Once students complete their online course, money is reimbursed to students
While I liked the project at first (providing education opportunities to the poor) given the fact that this is done by charging the same poor people a high interest rate on Payday loans (which is what keeps them poor) to support such a programme just does not sit right; and running an ICO to get cash to issue payday loans … none of this is very clear from their initial white paper btw.
More detailed information to follow, again, I’m not stating that this is a scam, but this is a seriously questionable project from my point of view.
White paper: https://monetizecoin.com/whitepaper/whitepaper.pdf
Bitconnect, Davor coin, PoWH, PoWH3D … etc.
This seems to fall straight into the same category. Some immediate red flags:
- They promise daily returns, up to 40% monthly on an investment of 100USD, that’s a daily interest rate of +1% which is simply impossible to achieve without a ponzi or pyramid scheme. (which is on their website but not explained in the white paper)
- There is no owner information, period. This is a huge red flag, irrespective of their claims of avoiding legal problems. If your company was legitimate and the platform is legitimate there is no reason to fear legal problems. In their whitepaper they claim to do this because “cryptocurrency should be anonimous” … roflmao
- In their lending system they lock in the cash (despite what they claim on their website, it is stated in their white paper).
- They have an active referral system = Ponzi scheme, no need to look further. They are paying incentives on signing more people up in a pretty straight forward pyramid scheme structure.
- Monetize Coin says they’re a company that has a lot of money – millions, according to them – in revenue. If such claims are true in any way, why would they need money from unknown people?
- They also claim that they create external revenue with the use of an “automated traffic arbitrage system”; Supposedly, the Monetize Bot automated traffic arbitrage system exists since 2008, back then it was developed for an online casino, the idea started when developers and an online marketer gathered and set the first steps for the software.
- The fact that Monetize Coin has such a powerful bot would mean that they don’t need to be doing anything else but living off this magical bot. Yet, they still need people ‘s investments? Something doesn’t ring quite right here.
My advice, do NOT invest in these types of programs, yes, early adopters might make it to the top of the pyramid (and most likely those are the people behind the platform) and make a decent to high amount of money until the project collapses. In order for any pyramid scheme / ponzi scheme of this nature to work you would need an infinite number of participants; which doesn’t exist on this planet.
Here’s my full write up:
Yes, I would put that in this category.
Post ICO the company shut down their website, their telegram group and their office in Germany. The CEO disappeared and posted on Twitter that it was all over, showing pictures of him at the airport and on some beach in Egypt (beer in hand).
All communication stopped and most of the people associated with the project could not be contacted. The CEO had a speaking engagement at a blockchain conference (?) to which he didn’t show up.
After more than 24 hours they returned and claimed this was a marketing stunt, as this sort of thing happens often in the ICO world. And then went on to state that they want to advise others on how to do ICOs (can you get more narcissistic?).
Whether a really poorly designed, ill conceived marketing stunt or an exit scam gone wrong (they may have gotten cold feet) doesn’t really matter; the damage to investor confidence and the general public was done and they did additional damage to the trust in ICOs in general.
They may be a legitimate project, but I would not invest in any team that thinks this was a good idea after just raising 4.5M USD in funds.
I am terrible at writing. I have looked at MIXIN token (XIN). Could you please confirm that this is absolutely an unbelievably waste of money! I can not even affirm why anyone would invest in this what I think to be scam. You have a fantastic ability in producing quality content IMO.
Karl is given name
Your creative writing style is perfect for covering an area that is desperately needed in this industry. I honestly do not know why you do not have your own site warning people of these dangers? Many people lose hard earned money on scams and false claimed projects. I myself appreciate your time and wanted to thank you personally, I looked at MIXIN and can not see why any reasonable person would invest a single cent. It even has downloads for what I understand to be incomplete apps? Unbelievable…Thanks again
Thank you very much I actually write about blockchain technology but started to realise that I need to expand this with scams since I come across so many; so I’ll start elaborating on these. You can find me here: https://email@example.com
We are also adding this on my companie’s page going forward: http://blockchainlabs.ai/newsarticles/
And we are adding podcasts (http://michaelwaitzepresents.com/ and the Asia Tech Podcast http://www.atp.show/) and distribution on LinkedIn to start reaching as many people as possible (I already retweet / relink / reFB the stuff that I write but we’re gradually getting this out to a wider user base).
I’ll take a deeper look at Mixin tomorrow (03/05/18), thus far I would say you’re absolutely right, their website has literally no information on it, neither does their FB, but I don’t want to jump to conclusions too quick. I’ll edit this post tomorrow so that the information stays consistent and it stays easy for people to scroll through the list.
Not necessarily a scam but something to watch out for if you are new to the cryptocurrency space. CryptoTab is a browser extension that a user needs to install that supposedly allows the user free mining of BTC and as per their own claims: “Become a part of a huge mining pool! The bigger the pool’s computing power is, the bigger blocks can be solved, the more money you can earn! Invite most active friends of yours, who will in turn invite their own friends and start making real money! Get more than 1 BTC per month!”
- Mining one bitcoin per month or more by simply using one PC and one browser plugin is simply impossible, even if you combine a vast number of computers in the world, the BTC reward of mining a block will still need to be split among all. I.e. they cannot live up to their claim.
- The plug in may contain malware, that can steal personal information from your PC (such as checking for BTC private keys)
- They do pay-out, however the amounts I’ve seen in terms of pay-out are extremely low, mostly below 0.00001 BTC, which would mean your computer processing power and electric costs will not be covered.
- It’s all about the referral programme! You can refer as many friends and family as you’d like and you’ll start to earn more, more and more … up to 10 (yes TEN) layers in their referral programme. And that puts them straight into a pyramid scheme heaven. Level 10 would mean 60 million people would have to participate and those at the bottom obviously can’t earn any money; while those at the top (the creators) get the bulk of the mining proceeds.
- You need to sign in using social media.
While they have a pay-out page, it is obviously impossible to validate whether this payout is to a real person or their own fake accounts (since its public keys only) and due to the fact that it is a pyramid scheme (not ponzi, you’re not directly investing, you’re indirectly investing your PC life and your electricity) I would highly recommend against using this plugin; it simply isn’t worth it.
Whitepaper: don’t make me laugh
And yet another pyramid scheme:
You are performing a valuable function in this space. Too many others pump, few research and expose faults in offerings and even current tokens and coins. If only coins and tokens could be frozen when there is concrete evidence they are a fraud or an extreme danger to investors. Well done.
LendConnect / Etherlink
I was going to write about this project, but like Bitconnect, Davor Coin, PoWH, and all other lending platforms, this has now caved in onto itself. If you were considering investing in this … DON’T.
If someone still wants me to do a write up on how to identify these types of scams, just let me know.
This is an alert, I’m not going to classify it as a scam just yet but since many people I know (myself included) have been receiving LinkedIn inmail to participate in this ICO I did some digging and wanted to share my findings.
You may receive a mail on LinkedIn with the following content:
"thank you for joining my world!
It has been my pleasure to confirm your friend request
and i’m happy for our connection
If you’re interested in Cryptocurrencies and especially in ICO´s,
i got a huge gift for you.
We’re launching the first ever ICO of a German federal bank in a few weeks."
So I said sure, tell me more , response:
"this will be the biggest ICO ever, made in Germany!
The whitepaper will be available soon.
I can arrange 60% friends&family bonus for you, BEFORE the pre-launch starts with 40% bonus.
The official ICO will start with the public pre-sale and 40% Bonus in a few weeks.
I know the CEO very well and can arrange 10% referral commission for you if you refer investors.
Are you interested?"
So I said, sure, mail me the whitepaper:
"the secret link to download the whitepaper:
Are you interested to get the friends&family bonus? "
You can read the whitepaper yourself if you like using the “secret” link above, here’s a recap of my findings:
- For starters, noboby and I mean absolutely nobody needs a secret link for a whitepaper! A whitepaper should be public and should be transparent. While I can understand that you may not want to disclose some of your project details to the general public (investors under NDA, partnerships under NDA) there is zero reason for a secret link. ever. You are trying to raise money from the public (or that is what you should be trying to do); so this immediately screams to me that somethings not 100%.
- The website is virtually non-existing: http://federalcoin.de/ it has literally zero information in it.
- The whitepaper has team members blurred out, again no logical reason to do so, especially since you’re only distributing this via secret link.
- The two members that do exists, exist on LinkedIn but neither seem to have any prior experience before starting this venture. They’ve only ever been in this venture for the last 7-8 months.
- Other team members are completely unknown, no names are given and images have been blurred out.
- No previous blockchain nor FinTech experience with anyone on the team
- They claim a connection to a German bank but refuse to share the name of the bank; and from their profiles they’ve never worked in banking or FinTech.
- They claim to have highly experienced programmers, but refuse to name them / show their picture
- They refer to themselves as being trusted (a lot) but don’t offer anything to subscribe such trust.
- They plan to raise 50M USD, (1 ERC20 token = 1 USD), since they’re launching an ERC20 token this means that all they are developing is an app to allow users to pay at retail outlets (undisclosed retail outlets). So they’re raising USD 50M for app development and marketing, that’s one expensive app.
- They plan on issuing a total of 150M tokens but provide zero details about the date / time / value of the remaining 100M tokens, which means that your initial investment may rapidly depreciate if they flood the market with 2x the amount of available tokens at a lower valuation.
- They have a seed phase - 60% discount and a pre-ICO phase -40% discount but from what I can see they plan to offer all 50M tokens at the -60% phase and to roll-over the unsold tokens to the next phase.
- So if all are sold at 60% discount, they only raise 20M? What is the actual funds they require?
- Discounts only work if you actually have a benefit, if everyone buys the 50M tokens at -60% then nobody gets a discount since everyone will have bought at the same rate.
- There is no soft cap listed anywhere
- There is no description of development fund and actual usage of funds, they do provide percentages but since all tokens can be sold at -60% it is unclear if those are based on raising 20M USD or 50M USD
- Because its all a secret they obviously don’t exist on ICO rating sites.
One plus, the company has effectively been registered in December 2017: https://www.kompany.ch/p/de/hrb28678%20essen
I’m not saying the project is a scam, but there simply isn’t enough tangible information to make a decision, crucial information is either missing, redacted or purposely not disclosed.
This whitepaper requires some serous review and revision and a truckload of tangible information. As such I would strongly advise against investing in this project at this stage.
Thanks in advance,
Nice article. No one wishes to have their dream crushed so let’s all enjoy the notion of decentralization shall we?
Added from this topic: Bitcoin Dark an exercise for everyone
Where to begin …
- Send us your Bitcoin and convert them into BitcoinDark (BCC … err … BTCD) first red flag.
- The pay out is in USD, not bitcoin, nor BCC, nor BTCD … that’s a second red flag.
- FAQ: 1) When will the lending interest be added to my account?
It will be added every 24 hours of your lending transaction has been approved. All lending transactions will be treated separately for interest payments.Read more … clicking the link sends you back to the very same page, no extra info provided.
- FAQ: 2) I usually get a daily profit from lending but why there is no interest payment received today?
The daily profit is not guaranteed. The interest rate that you earn daily using our investment platform is calculated by our BitCoinDark Price Volatility Software and accrued daily. Some days, the profit may be 0%.Read more …clicking the link sends you back to the very same page, no extra info provided
- FAQ: all links just go back to the same page.
- FAQ: BitcoinDark trading bot and volatility software.: the link sends you back to the same page
- Any system that has a trading bot but doesn’t want to explain how it works is suspect
- Any time I read “volatility software …” I get suspicious.
- About us section doesn’t contain any information on who they are, zero. Just a link to the same 3 articles which are all articles from their own website
- They are moving all BTCD to Komodo, literally all, so BTCD will be worthless in a short amount of time.
- They’re using delayed Proof of Work (dPoW).
- Their website contains zero information, even their article on Bitcoin is only two paragraphs long, not even a single link to the BTC whitepaper or the 1000s of articles written on BTC by now.
- All links to their news are linking back to the same website, they couldn’t even be bothered to provide external links and make it believable.
- Promises of daily return on investment
From their guide: 1. First, you must create an account on the bitcoindark.life page
(go to the bitcoindark.life page, root on the right side of the screen, press the register button)
You fill out the registration form
(Referral only for your Referrer’s name on “This section is related to the issue of payouts under the link of the future referrers”).
For example, if A introduces the B into the group, then A will get 10% of the total investment of the B, and next, if the B introduces the C into the group, B will also get 10%. total investment of the C, and the A will now also enjoy 5% of the total investment of the C
= Pyramid scheme
- From their guide: So that’s ok, we have a $ 500 investment package and enjoy 1% every day for 180 days.
= Ponzy scheme
Nobody, absolutely nobody can guarantee a 1% return on investment on a daily basis. If you have a trading bot that can generate a 1% return on investment every day you don’t need other peoples money, you invest 1,000 USD and you’re set for life through compound interest.
It’s an absolute scam.
My advice, walk nay run away. Actually run away faster than that!
This is equal to Bitconnect, DavorCoin, Ryse, etc. etc.
I would say this is even worse than Bitconnect.
The premise is easy, you send them 0.5 BTC to their wallet and they will pay a 20% bonus on a daily basis for the next 5 days!
Don’t miss out on this incredible offer! … NOT
But wait there is more! They are offering a special incentive right now where your 0.5 BTC will be turned into 1 BTC within 12 hours!
- Zero data on who is behind the scam, of course, they just want to walk away with your money.
- Zero information on their so called technology, which, let’s be very clear does not exist.
- Whitepaper … not needed.
- On their Pay-out section they show supposed payouts to people that have participated, with the public keys of the participants. So a quick check shows this address, which they have listed: 1F7iSCQZpKezGC6C6jPDASibFQNEzyL8WV to which they have supposedly paid 1.54634 BTC
if you then look into the block explorer for the movement on that address you will notice that no such payment actually exists: https://www.blockchain.com/en/btc/address/1F7iSCQZpKezGC6C6jPDASibFQNEzyL8WV because, well it is a scam after all, they couldn’t even be bothered to set up a fake payment to themselves.
- Don’t believe me? Check any address in that list and you’ll see that none of the payments exist.
This is a SCAM, pure and simple. All they are trying to do is get BTC holders to send them 0.5 BTC each and then walk away with your money.