If you’ve heard of or participated in the cryptolux ICO, I can bet my last dollar that you did not carry out appropriate research on the project. Unless you are a member of the team behind the Cryptolux project, I can also bet that you have lost any money you invested in the project.
The brazenness of scams and scammers especially within the crypto space can be mind numbing. It is possible that with a little more exposure to all these scams, ICO and crypto investors will become skeptical about all future offerings or simply write off the industry.
As we are already witnessing, the market downturn could be the cumulative effect of so much negative publicity or other fundamental factors.
Here are 8 facts that you may not have known about Cryptolux:
1) When the project was announced, Cryptolux Capital, the venture capital company that the CryptoLux ICO seemed to have ‘borrowed’ its name released a statement dissociating itself from the initial coin offering.
According to the firm,
“We are posting this note with the intention of informing the public and prospective investors that we have nothing to do with the “CryptoLux ICO,” and wish to make this abundantly clear. For the avoidance of doubt, we do not condone, approve of, support, or otherwise endorse this ICO in any way whatsoever.”
CryptoLux Capital went on to state that it was exploring legal means to ensure that CryptoLux doesn’t take advantage of the known company’s name to host an ICO. CryptoLux Capital was among the first entities that pointed out that the CryptoLux ICO was at best suspicious warning investors on the risks involved in investing in the ICO.
2) Of all the popular ICO rating sites analyzed by Cryptoinfowatch, only one rated CryptoLux ICO poorly, the rest gave the scam 3 star rating or higher.
This has been one of the challenges of ICO rating in the industry. Sometimes, the rating sites are more interested in the money to be made than in careful analysis and rating of projects.
3) Judging from tell-tale signs, it shouldn’t have been too difficult to know that the CryptoLux project could be another scam, however as it almost always happens, most investors in this project overlooked or simply did not notice the red flags.
A look at the project website shows that there barely was an in-depth explanation of what the project hoped to accomplish or how they will accomplish it. For instance, this bland web copy:
“In a permanent-growth cryptocurrency market, CryptoLux is permanently re-inventing and improving itself with clients from over 23 countries and a sold-out Initial Coin Offering. Our state-of-art trading platform is aiming at bringing simplicity in a world of ambiguity and uncertainty, by teaching our clients how to simply trade and gain considerable profits out of their Crypto investments”
convinced many an investor to put money in this project.
This confirms the suspicion that the drive behind many investment decisions in ICOs is greed. Many investors just give money to scammers without asking questions or even finding out how viable the project is, talk less of how competent the people promoting it are.
You would have thought that red flags such as poor web copy and grammatical errors should warn investors but it seems that many have more money than sense.
4) CryptoLux gave the impression that their token will keep on appreciating at a fixed rate. The ICO implied that all investors will be on profit irrespective of the conditions of the market.
As a rule, one clear indication that an ICO will likely be a ponzi scheme or a direct scam is a promise of specific return on investment or profit. If an ICO announces that investors will make certain profit, it should ring a warning bell and this was exactly what CryptoLux promised in their promotional materials.
“CryptoLux offers one of the most advanced AI based crypto-trading systems, rounding up your investments with up to 45% per month. Our artificial intelligence trading bot makes all the hard decisional work for you, being closely supervised by our highly-trained team of experts, to be sure that the best decisions to your interest are taken.”
5) The CryptoLux website is very similar to the scam called bitcoin generator in that it simulates the impression that people are investing and withdrawing just to prompt new investors to put in their money in the phony project.
It is usual to see displayed on the site, “Abone44 has invested 2320ETH”. The idea is to make new investors feel that this is a good investment opportunity.
6) The profiles of the CryptoLux team as displayed in the archived version of the site are all faked. The project essentially is a smart scam that was able to hoodwink thousands of investors and raised millions of dollars in ICO fund.
For instance, the picture of the CryptoLux CEO and Founder, Robert Alexander was stock photo pulled from the internet as seen here:
7) CryptoLux has since morphed into a ponzi-like project promising to pay people 45 percent of their investment monthly. What do you think will be the outcome of this scam? When they believe they have enough or that the long arms of the law is about reaching them, they’ll quietly disappear with all the money investors contributed.
8) There is no evidence that the people behind this project know anything about trading from the web copy. What they seemed to have done was use every word associated with crypto trading and blockchain to convince investors that they have something to offer.
Interestingly, you would come across statements like, “In a permanent-growth cryptocurrency market, CryptoLux is permanently re-inventing and improving itself with clients from over 23 countries and a sold-out Initial Coin Offering. Our state-of-art trading platform is aiming at bringing simplicity in a world of ambiguity and uncertainty, by teaching our clients how to simply trade and gain considerable profits out of their Crypto investments.”
“Advantages of cooperate with us [sic]”
causing you to wonder why there are investors still putting money in a scam such as this.
Isn’t it enough evidence that the promoters of this scam are not professionals based on the evidence that they could not even produce an impeccable content free of grammatical errors?
Scam ICOs are common, in reality the ICO you put your money in without due diligence is the quickest way of losing money these days.
Have you lost money in an ICO recently? Please let us know at the comment box below.
Photo credit: Coolcryptovator