This is part two of the series, where we discuss some of the latest crypto scams happening in Singapore. Since Bitcoin prices have been on the rise, many new crypto investors are looking for altcoins that have lower barriers to entry to invest in. Because of this, most many crypto scams arise from new tokens that try to attract gullible investors who want to get rich quick.
In the previous post, we discussed how Cloud Token sets out to con unsuspecting investors. In this post, we’ll be looking at another fraudulent token which seeks to do the same — WoToken.
According to its website, WoToken is a “blockchain application consisting of Wo Token intelligent platform, Wo Token, and digital asset bank card.” It claims that its platform coin, WOR, can be sued to exchange with other digital assets like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
However, when going through the website, it doesn’t seem to expound more on its products. At the time of writing (July 2019) the website seems to be undergoing some problems. The only clickable links are dubious “download” links.
Another MLM Scheme
Its website does not have much useful information, but articles on other crypto review websites have claimed that WoToken incorporates an MLM scheme in its marketing strategies. There are mainly 2 ways to earn a profit on this platform: ROI commissions and referral commissions.
To earn ROI commissions, you’ll first need to purchase the WOR tokens. Upon investing $1000 worth of WOR tokens, you will be promised a 0.25% - 0.5% ROI daily. If you’ve invested $5000 worth of WOR, you’ll be promised a 0.3% - 0.65% ROI daily. An important aspect to note, however, is that WOR has no value outside of this platform. It is not publicly traded, and definitely not well-recognised in the crypto world.
For members who want to profit through referral commissions, they’ll need to fulfil a number of requirements. Tier 1 members will need to have a downline of $250 000 WOR token ROI volume. Tier 2 members will qualify by personally sponsoring 3 tier 1 members. Tier 3 members will qualify by personally sponsoring 3 tier 2 members, and so on. There are a total of 15 tiers to WoToken’s MLM structure, making it unsustainable and unprofitable for most members who join.
Who owns WoToken really?
No one knows. It’s a mystery — and that’s not a good sign. Credible, legitimate cryptocurrencies are founded by individuals who have deep insight into the technological developments of their product, and a clear understanding of what cryptocurrency is all about. Whenever you’re investing in an altcoin or a new crypto startup, it’s important to find out about the people involved in these. Not knowing who the founders are is almost always a big red flag.
There are a number of big red flags with WoToken. The first being its lack of products, and the second being the elusiveness of its founders. Additionally, sources online have also claimed that WoToken uses the Neraex exchange, a failed Japanese crypto exchange. Regardless of how “legitimate” a crypto startup might seem, it’s important to do significant research on your own before jumping in. If you’re interested in learning about cryptocurrency but don’t know where to start, you can sign up for educational cryptocurrency courses too. Make sure you’re getting your information from multiple sources, and not just from one!