PlusToken project risk analysis: multi-layer promotion mode MLM gameplay, smart dog moving bricks and holes

PlusToken told the market a good story and drew a big pie. The cake is a good cake. The whole people participate in the trading platform to spread the price difference. Unfortunately, the profit he gives is far higher than the actual profit generated by moving bricks. The profit of less than 1% in the month is exaggerated to a monthly average of 10% to 20%. In the case of the rate, the collapse will also be inevitable.

Introduction to the PlusToken project

PlusToken was officially launched in many countries and regions in April 2018. It is called PlusToken digital currency arbitrage and quantitative trading wallet. The wallet stores Ethernet and bit series tokens and supports digital assets such as BTC, ETH and LTC. Its declared business model relies on mainstream currency to move bricks and arbitrage.

At the end of June 2019, PlusToken stopped withdrawing cash, and six Chinese nationals were arrested by the Vanuatu Police Force for “illegal Internet scams”. On July 5, the six were repatriated. Recently, confirmed the founder of PlusToken Chen Bo as a suspect.

The PlusToken website is also closed or no longer updated.

PlusToken security risk

1 Multi-layer promotion mode is similar to MLM gameplay

PlusToken claims that the “multi-level promotion model” is similar to MLM, which pushes 100% of the layer and 10% of the layer from the second to the tenth. The typical pull of the head, earning commissions, thereby attracting more users to enter the game.

2 smart dog moving bricks full of holes

PlusToken's main smart dog moving brick function has many doubts. In the gameplay, PlusToken gives a description that when the user's wallet has an equivalent token worth more than $500, turning on the smart dog allows the user to get an additional 10% to 30%. But PlusToken doesn't say where to move bricks, nor what currency to carry. Moreover, the record of moving bricks that users can find is limited, and there is basically no change. That is to say, the user just transferred his Token to the PlusToken, and as for how the PlusToken works, it is impossible to know.

In addition, the so-called “receiving coins at any time” to improve user security also sets the conditions, “the fee for 5% is charged within 28 days, and only 1% after 28 days”. The main purpose of the disparity fee is to stabilize the user, not to let the user clear the account at one time, and the price of the currency will not fall too fast.

3 Team background and company model are doubtful

PlusToken claims that "developed by the original Google and Samsung teams, it adopts a new model of the pass-through economy, which is a new organizational model different from the corporate system in the blockchain era." But in reality, only Samsung and Google have sponsored ads on the Ethereum browser. Moreover, the official team disclosed little information, basic resumes, team size information, and low credibility.

PlusToken Revenue Demo

1.PlusToken fundraising plan

2.PlusToken account is divided into four levels

AI-Dog revenue feasibility analysis

PlusToken wallet counterfeit Alipay, both digital currency storage function, and Alipay balance Bao's interest payment function, and claimed that AI-Dog monthly income can reach 10% to 20%, daily income from 0.32%.

AI-Dog moving bricks necessary conditions:

  1. More than two exchanges must have an account and have a reserve of funds in the account.
  2. Digital assets such as BTC, ETH, and BCH have spreads between exchanges.
  3. The software speed is processed quickly enough, and some of the brick-moving software speeds can reach 0.01 seconds/time.
  4. The spread size should cover the handling fee.
  5. The more currencies covered by moving bricks, the more currency reserves and USDT reserves are needed; if no currency reserves are available, then leveraged trading will be involved.
  6. The trading volume of the exchange can meet the requirements of moving bricks.

AI-Dog revenue feasibility analysis (for example, $500):

  1. In order to ensure that the spread between exchanges is high enough, at least cover five mainstream trading platforms. On average, each trading platform has a reserve of $100. However, PlusToken did not announce the corresponding trading platform for access.
  2. With incomplete statistics, the probability of a spread of more than 0.5% per hour in the BTC of Huobi, OKEx, Binance, Bithumb, BitMax, etc. is 0.95%. The average procedure for exchange trading is between 0.3% and 0.4%, and there are fewer than one profitable transactions per week.
  3. PlusToken moves across the mainstream currency, so that the reserve and USDT reserve requirements for the corresponding currency are higher. In the case of the principal, the split will be further split. On average, each trading platform has a reserve of $100. When it comes to more than five currency reserves, the average capital reserve per currency is less than $20. While PlusToken does not display the corresponding currency reserve, leveraged trading may be used to complete the trading of different currencies during the brick-and-growing process. At present, the exchange's average leveraged lending rate is 0.1% to 0.2% per day. The transaction cost of moving bricks will further increase.
  4. What is important in the process of moving bricks is whether the real-time volume of the trading platform can meet the demand of moving bricks, and the software processing speed is fast enough. Because in this process, there will be a large share of the brick-and-mortar software, with incomplete statistics on the market, and 40% to 60% of the total amount of funds can be realized. When the amount of funds is larger, the realized turnover will decrease proportionally. In particular, PlusToken involves more than RMB 20 billion in capital, and the market turnover on July 24 is less than RMB 400 billion. How much share PlusToken can capture in the entire process of moving bricks.

In summary, PlusToken's AI-Dog bricking system ideally has a monthly average yield of less than 1%, which is far below the 10% to 20% of the average monthly earnings promised by PlusToekn. Moving bricks always emphasizes risk-free arbitrage between trading platforms. There is no risk-free situation in the transaction itself, but the risk of moving the bricks is lower, and he also compresses the profit space accordingly. With the increasing linkage between trading platforms and compliance, the arbitrage space for moving bricks between trading platforms will become narrower and narrower.

Source: Standard Consensus