Besides Bitcoin, Ethereum, and Ripple, many new tokens are on the rise. With an influx of crypto startups, new wallets, and new coins in the market, knowing how to spot a crypto scam from afar is crucial. In this series, we’ll be covering four crypto ponzi schemes in Singapore and how these up-and-coming projects and “cryptocurrency courses” set out to dupe unsuspecting investors.
In the first of this four-part series, we’ll take a look at Cloud Token, its “up and coming” token and digital wallet.
Cloud Token Wallet and CTO
Heard of Cloud Token Wallet? According to its website, this digital wallet is “the world’s first social wealth wallet to integrate all blockchain cryptographic assets into one platform”. It claims that it is a decentralised wallet supported by its AI trading bot technology. Besides its digital wallet, Cloud Token also has its own token, CTO.
Cloud Token is probably a pump and dump scam
This all sounds fine and dandy. So what makes Cloud Token fishy? For starters, the Cloud Token Wallet is not a truly decentralised crypto wallet. There aren’t as many transactions going on as Cloud Token claims. Despite claims of high ROIs and high volumes of trade, only a few transactions can be seen in its platform.
Looking at the image above, it’s clear that one particular address holds about 99.99% of all CTO tokens — a clear sign that Cloud Token is a pump and dump scam.
Bold claims with no proof
Cloud Token claims that it has generated ROI using the Jarvis AI Bot, which engages in trading on a range of cryptocurrency exchanges. However, these claims are not backed by evidence as there are no transactions of records of arbitrage trading.
In one of its recent Singapore events, Cloud Token also claimed that its cryptocurrency course could help individuals with no trading knowledge earn between 8% to 12% returns just by investing in small amounts of crypto. If you’ve been following this page for a while, you’d know that we always preach prudence and doing your own research. Instead of promoting valuable products, Cloud Token targets ignorant individuals looking for ways to get rich quick.
Cloud Token is another MLM scheme
We all know the bad rep that comes with MLM. Cloud Token adopts the MLM model and tries to recruit members by paying those who take part in the recruitment process. To be part of this scheme, though, you’ll first need to invest at least $500 first. Its MLM pays commissions up to 21 levels deep, which is ultimately unsustainable.
Cloud Token is backed by other scammers
Simon Stepsys, Luigi Bruni, Justin Halladay, are just a few of the many crypto influencers Cloud Token uses to promote their platform. These individuals are known for promoting scams and only care about the commissions they receive. When choosing your crypto wallets and assets, it’s important to do a quick background check on spokespeople of crypto startups. Don’t pay any attention to individuals who don’t have investors’ interests in mind.
Cloud Token has been accused of fraud on multiple forums and crypto websites. It holds various events to draw in investors into its MLM scheme and had recently held a Cloud Token Crypto Super Wallet Launch in Singapore. Besides Bitcoin, there are still altcoins worth investing in. However, before you jump on board any of the hype train, it’s important to read up on what you’re investing and look through forums to get opinions without vested interest. Additionally, signing up for a credible, legitimate cryptocurrency course will also give you the knowledge and confidence to make proper crypto-trading decisions.