Cloud Token Review: Another mobile app crypto Ponzi scheme
Cloud Token’s website provides no information about who owns or runs the company.
The Cloud Token website domain (“cloudtokenwallet.com”) was privately registered on January 27th, 2019.
Marketing videos on the Cloud Token website are presented in Chinese. The videos themselves feature a man speaking Chinese.
In one marketing video, Sheng Zhao and Simon Tran are presented as “big names behind Cloud Token”.
Just a note on the photo itself, it was taken at a World BlockChain Forum event.
Sheng Zhao (aka Zhao Sheng) is one of the World Blockchain Forum’s co-founders.
In another marketing video, the following image is presented as Cloud Token’s “prelaunch in China”.
The event was purportedly held in China a few weeks ago.
The two people credited in English in the photo are Ronald Aai and Daniel Csokas. Sheng Zhao stands to the right of Csokas (center)
Ronald Aai (right) is based out of Singapore and is one of those random people you see listed in crypto whitepapers.
Officially Aai credits himself as a cryptocurrency consultant, specializing in platform design.
As far as I can tell, none of the crypto projects Aai has associated himself with have gone anywhere.
Daniel Csokas (right) is also based out of Singapore and appears to be an MLM crypto freshman.
On his personal Twitter profile, Csokas cites himself as an “organic chemist based in Singapore”.
Sheng Zhao appears to be attached to the Plus Token Ponzi scheme through World Blockchain Forum.
Plus Token was promoted to attendees of a World Blockchain Forum event held last September.
In the marketing video the first screenshot above was taken from, Tran (right) is credited with “bringing Cloud Token to North America”.
Tran himself is based out of Toronto, Canada. Prior to Cloud Token Tran was promoting Plus Token.
Before he got into cryptocurrency scamming (mid to late 2018), Tran was promoting Enagic’s Kagen water filters.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Cloud Token Products
Cloud Token has no retailable products or services, with affiliates only able to market Cloud Token affiliate membership itself.
The Cloud Token Compensation Plan
Cloud Token affiliates invest $500 or more in CTO tokens, on the promise of an “average 10-15% per month” ROI.
Commissions are paid when Cloud Token affiliates recruit others who do the same.
Cloud Token pays referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
How many unilevel team levels a Cloud Token affiliate earns referral commissions on is determined by how many affiliate investors they’ve recruited.
- recruit one affiliate investor to unlock level 1
- recruit two affiliate investors to unlock level 2
- recruit three affiliate investors to unlock level 3
- recruit four affiliate investors to unlock level 4
- recruit five affiliate investors to unlock level 5
- recruit six affiliate investors to unlock level 6
- recruit seven affiliate investors to unlock level 7
- recruit eight affiliate investors to unlock level 8
- recruit nine affiliate investors to unlock level 9
- recruit ten affiliate investors to unlock level 10
- recruit sixteen affiliate investors to unlock levels 11 to 21
Referral commissions are paid out as a percentage match of daily returns paid to unilevel team affiliates:
- level 1 (personally recruited affiliates) – 100% CTO ROI match
- level 2 – 50% CTO ROI match
- levels 3 to 21 – 5% CTO ROI match
Note that referral commissions are paid in CTO.
Rank Commission Bonus
Cloud Token boost their referral commission by an additional 5% when they generate $200,000 in unilevel team investment volume.
This also qualifies them as a C1, which is used to calculate generational bonuses (see below).
Cloud Token defines a generation within the unilevel team when an affiliate at the same or higher rank is found in a unilevel team leg.
This affiliate caps off the first generation for that leg.
The Generation Bonus is paid on ROIs received in that first generation (up until the C1 or higher ranked affiliate).
Using this generational structure, Cloud Token pays a 5% Generation Bonus.
- C1 affiliates receive the Generation Bonus up until a C1 or higher ranked affiliate is found in a unilevel team leg
- C2 affiliates must generate three C1 affiliates each in separate unilevel team legs, and receive the Generation Bonus up until a C2 or higher ranked affiliate is found in a unilevel team leg
- C3 affiliates must generate three C2 affiliates each in separate unilevel team legs, and receive the Generation Bonus up until a C3 or higher ranked affiliate is found in a unilevel team leg
- C4 affiliates must generate three C3 affiliates each in separate unilevel team legs, and receive the Generation Bonus up until a C4 or higher ranked affiliate is found in a unilevel team leg
There is an additional C5 rank (see below), but they receive no additional Generation Bonus beyond C4.
To qualify as a C5, a Cloud Token affiliate must generate three C4 affiliates each in separate unilevel team legs.
As a C5, a Cloud Token affiliate receives an additional 5% revenue share on company-wide investment volume.
Joining Cloud Token
Cloud Token affiliate membership is free.
Participation in the attached income opportunity however requires a minimum $500 investment.
Mobile app based Ponzi schemes seem to be flavor of the month for the MLM crypto niche.
Cloud Token is more of the same.
Each of these app token scams is attached to a worthless altcoin. In this instance it’s Cloud Token (CTO).
CTO is generated at little to no cost. As at the time of publication, it is being unloaded onto Cloud Token affiliate investors for 30 cents a pop.
Through their app, Cloud Token raises the internal value of CTO, which in turn allows affiliates to cash out.
By cashing out, Cloud Token affiliates are paid from subsequently invested funds.
In a nutshell, you sign up as Cloud Token affiliate and invest.
Your investment is stolen by existing Cloud Token affiliates. You then steal money invested by those who join after you.
Those who get in early and promote scams like Cloud Token are acutely aware of how they work.
A lot of people made a FORTUNE with PlusToken… now it’s YOUR time and MY TIME to do it with another Decentralized Crypto Wallet… That pays us for HODL our Crypto.
Cloud Token claims to generate external ROI revenue through their Jarvis AI bot.
The bot supposedly engages in arbitrate (cue eye rolling), but there is no evidence of external revenue being used to pay affiliates.
The only verifiable source of revenue entering Cloud Token is new investment.
For the extremely gullible out there who to take Cloud Tokens’ Jarvis AI bot claims at face value (a terrible idea), the company at the very least is committing securities fraud.
By virtue of soliciting investment on the promise of a passive return, Cloud Token’s business model is a securities offering.
Cloud Token is not registered to offer securities in any jurisdiction it operates in, meaning the company is operating illegally irrespective of whether Jarvis AI is bullshit or not (it is).
Early Cloud Token investors build their CTO balance by direct investment and convincing others to invest.
The are able to withdraw the majority of invested funds, due to their CTO balances being replenished by their unilevel team.
Remember, Cloud Token returns aren’t paid in real money – they’re paid in worthless CTO.
Affiliates can only cash out CTO for as long as admins allow. Once an investment reserve threshold is reached, they do a runner (and evidently launch a new crypto token scam).
Cloud Token and the rest of the mobile app Ponzis represent the continued decline of the MLM crypto niche.
Summed up, they’re nothing more than a new delivery platform for the same old Ponzi scam.
Update 9th October 2019 – Since publication of this review Cloud Token has added an unlicensed lottery they’re calling Rogue.