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).
Generation Bonus
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.
Revenue Share
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.
Conclusion
Mobile app based Ponzi schemes seem to be flavor of the month for the MLM crypto niche.
Since late last year we’ve seen the launch of Plus Token, Super CodingFly (SCF Token) and WoToken.
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.
CLOUD TOKEN-PLUS TOKEN-WOTOKEN; Sucks innocent victims into buying worthless shitcoins with real funds and then plays the classic Ponzi scheme until the victims dries up.
It amazes me that people continue to fall for these. Scam big time Ponzi.
As an IT professional, and a crypto participant since 2011-12ish, I took some time to reverse engineer parts of their wallet in the Android Studio SDK and ran it thru an emulator.
Not that I could get the full source code, but by introducing errors for testing purposes and reasonable deductions, I can safely say that the Cloud Token “wallet” has no capability of being a crypto wallet in of itself at all.
Not to mention there is no desktop version… All they did was make a mobile interface using Java, with no actual cryptographic functions at all.
It is simple an interface to create an online account on Cloud Token’s private servers. Meaning, it’s just someone else’s wallet.
Hmmm.. I should load it up again and wireshark my network to get their real server IP perhaps since they are using cloudflare to mask their real IP associated with their domain address.
Basically.. this is shady as fuck.
I also had a conversation with one of the top promoters who admitted he knows it’s a sham.. but…. and I quote… “It’s not a scam because it will last more than one year” –> ROFL!!
The marketers behind this scheme are preying on those who lack IT knowledge be claiming it is a wallet meaning it is secure because your funds are in your own wallet, but with no actual knowledge what a wallet is or what functions it needs to perform.
Logging into a central server with a username and password is not what a wallet does, at all. LMAO.. fuckin idiots.
This is being pimped by so many long time ponzi pimps such as Sindu Thomas, Terry Burns, Tyron Indalsingh and David Miller….I’m sure there are many many more.
Thanks guys for your enlightening comments.
So basically no one learnt a thing, from OneCoin or USITech?
I remember OneCoin launched in a similar way.
Expect to see USItechers, OneCoiners, Bitconnecters, the whole dam MLM underbelly basically.
ThatGuy (Post was just snafu) Even if you tell them things are not right, they would still go ahead anyways, desperate opportunists, grabbing at anything they can.
Head shake đ
Just because it exists, doesn’t mean Cloud Token is 1) successful or 2) has attracted anyone but serial ponzi players
Good review. I hope people not fall into this ponzi trap.
Clueless first of all the launch was held in Singapore , second its a licensed company like plus token which is real & made a lot of people money.
cloudtoken will be huge but unfortunately people like you have no clue and think everything is a scam. Sad for you.
The CloudToken affiliate sharing the material seemed to think it was held in China. Not saying there wasn’t an event in Singapore… but maybe they had two events?
Feel free to provide evidence of Cloud Token having registered with a financial regulator in any jurisdiction.
Don’t waste my time with bullshit general incorporation documents, they’re meaningless.
Cloud Token is offering securities and that requires registration and filed disclosures with financial regulators.
Anything anyone “made” in Plus Token was funds stolen from subsequent investors. Cloud Token is literally a 1:1 Ponzi clone.
Nah, just the scams.
Standard Ponzi deflections: 1/10 – IGN.
A large % of your info is incorrect.
And yet in defense of your Ponzi scheme, you failed to point out one error.
Those who write this is scam, that is a scam have no idea what you guys talking about. I dun see any proof of your articles about all these being a scam.
If it is a scam, how come its still operating? Anyway we dun need your comments.
i was about to invest in cloudetoken before getting this information thanks.
Cloud Token pays withdrawal requests with subsequently invested funds. That makes it a Ponzi scheme.
Because Ponzi schemes pay out until they don’t. That doesn’t make them any less of a scam before they inevitably collapse.
Who’s we? You came here to defend your Ponzi scheme.
These guys are either absolute idiots or degenerate scam colluders. I’ve seen this now so many times for over 5 years starting with OneCoin.
Anyone smart knows to ignore the marketing stories (hype) and look at the business fundamentals.
You can be guaranteed that the stories are always future speak or inaccurate representations. for example; NASGO promoters were telling people that NASGO was running Super Bowl Ads and that NASGO was endorsed by the Cambodian government.
A closer analysis revealed that NASGO purchased a suite and attended the Super Bowl and had NO Super Bowl Ads. (Investor’s money spent attempting to purchase credibility to fool future investors). And a private company in Cambodia was promoting NASGO, not the Cambodian Government.
How about answering these questions…
What is the source of revenue?
What is the problem they are solving?
What is the value proposition?
Who is the target audience?
What is the go-to-market strategy?
Does the customer need, want, and is willing to pay for it?
What is the market distinction?
What is the exit strategy?
Scams like these can never answer these basic business questions. I asked one promoter of Cloud Token these questions and his only response was “I’m not an analyst”. For heavens-sake if you are going to promote something at least understand what it is.
They can’t even get past the first question. The revenue from Ponzi schemes always comes from investors and never comes from delivering value to the marketplace.
Of course, that is assuming they care at all about their reputation or about hurting the majority of people that lose all their money in these get-rich-quick deals.
Kudos to Oz for keeping a spotlight on the scams. The scam promoters rarely provide verifiable evidence of his supposed mis-analysis as they claim.
The perpetrators of these scams are so desperate to get rich quick that they start believing the hyped up crap and lose all sight of common sense.
How many more of these scams must we endure… I guess as long as another sucker is born. It will never stop or be slowed unless the disinfecting sunlight is shed on them by good people like Oz and others.
Basically CloudToken, like the others that predate it, is providing a wallet in which someone can store various crypto coins like BTC,ETH, LTC etc.
While holding coins the member can participate in an AI arbitrage program that has been developed and is highly profitable. This is where the funds are produced that are paid out to the participants in the form of tokens which rise in value as more people get involved.
The tokens are utility in nature and nobody is in any way making an investment. They can be exchanged for the crypto coins that are listed and all transactions are fully transparent.
Also all trading done in the Jarvis AI program is shown and can be verified by checking the blockchain explorer.
The people who have developed this system are brilliant and are committed to the further advancement of blockchain/crypto technology. Nobody is hiding anything and the only requirement to participate in the arbitrage is to keep participating for 30 days or pay a 10% early withdrawal penalty. B
ecause there have been so many crypto MLM scams itâs easy to just look at this one as another one. But rest assured when you see someone like billionaire investor Jim Rogers attending the worldwide launch this month this is not in the same space as the shit programs you compare it with.
Even now a few people are making a lot of money here, not from swindling others but through advancements in artificial Intelligence. I recommend that you examine CloudToken more closely before writing it off.
Sure, but let’s cut the crap. Nobody is investing in Cloud Token for “the wallet”. You’re investing for the passive investment opportunity, which is a Ponzi scheme.
Call it whatever you want, it’s a passive investment opportunity that constitutes a securities offering.
Securities are regulated all over the world and require registration with financial regulators.
Cloud Token has not done this and are thus operating illegally. The only reason an MLM company doesn’t operate legally is because they aren’t doing what they say they are doing (paying affiliates with external revenue).
Sure they are. You dump money into Cloud Token and you get tokens to track your investment.
Cloud Token arbitrarily sets the value of your tokens and you cash out your tokens.
Cloud Token honors your withdrawal request by paying you subsequently invested funds. That’s a Ponzi scheme.
Calling a passive investment opportunity a “utility” doesn’t change the fact it’s still a passive investment opportunity (i.e. a security).
1. Not evidence of external revenue being used to actually pay affiliates who cash out.
2. “blockchain explorer” is not a substitute for legally required regulatory registration and third-party audited accounting.
You can’t legitimize a Ponzi scheme through association.
Thorough examination of Cloud Token, which means going beyond the marketing bullshit you’ve regurgitated here, inevitably leads to the conclusion it’s a Ponzi scheme.
No different to the rest of the token investment Ponzi schemes out there.
Look at: Ronald Aai
You find this person / pictures as well at BBETA.
bbeta.io/#section-187-4
Gives the impression, that the picture of Mr. Ronald Aai is just copied for other purpose.
Why compare any investment opportunity in the crypto market with the normal financial system?
Why does a crypto company need a security trading license?
The ideology in cryptography (Ozedit: has nothing to do with Cloud Token. See below.)
Because regulation of investment opportunities is part of the financial system.
How you set up the investment opportunity doesn’t matter (crypto, fiat, belly fluff), they are all regulated through the same financial laws (securities law when it comes to MLM investment opportunities).
It doesn’t necessarily. But any MLM crypto company offering a passive investment opportunity is dealing in securities, and that requires them to register with financial regulators in any jurisdiction they solicit investment in.
Cloud Token is one such MLM company offering a passive investment opportunity. By not registering it is operating illegally.
If you wish to discuss cryptography ideologies do it somewhere else.
I have zero knowledge – just trying to show a bunch of friends who’ve been duped into thinking they’re going to hit the jackpot.
I’ve seen loads of red flags for this project, some make sense as they’re plain ‘old school’, others are beyond me.
What continues to puzzle me is why Sheng Zhao, who seems a credible real world character, hasn’t yet seriously distanced himself from the project.
How credible is Ronald Aai?? Looks like he’s been around for a while & has a footprint that doesn’t yet portray him as a bad guy, no? More technically, is ‘Blockchain 4’ for real?
I mean was there a 1,2,3, & if 4 is for real does Aai have substantial claims/credibility in this space?? If BBeta is for real, which to a laymen like me it kinda seems it I s, then why is Aai fronting this Cloud Token, in the knowledge he’s committing securities fraud etc etc – or is simply ‘that what he does’??
Any responses that can point a bunch of old world aging guys in the direction of easy to understand reasons why the Wallet/Jarvis are flawed would be great (I appreciate what’s already been said in this blog).
The MLM aspect, which my friends understand to be a bit of icing on the cake, is not really in too much doubt – but it will only be when they get that the whole wallet/arbitrage thing is for the birds, that they’ll then want to desist & try and get their money out of the ponzi.
Thanks
Jay
Through WBF Zhao is also tied to the Plus Token Ponzi scheme.
He seems to be an admin but unwilling to personally front Ponzi schemes. At least not publicly.
Thanks Oz,
Not sure what you mean by ‘admin’, as Zhao seems to be up front & central as the ‘strategic investor’ & person who brought the team of Aai & Simon Shen together – at least according to much of the promotional hype for cloud token.
WIth this association to WBF & Zhao, cloud token (& plus token) gain much credibility.
Do you have anything that torpedoes the kudos given to Aai & his ‘Blockchain 4’ & Jarvis development?.
Where in the life cycle of these scams is plus token – people cashing out big time?, regulatory/SEC on their backs etc? I guess if it’s seen to be failing, it will impact on cloud token, no?
Thanks for your thoughts
Admin as in Zhao is the money guy running the show, but doesn’t seem to want to be publicly credited that way.
Sure, ask for audited proof of trading revenue being used to pay affiliates who cash out CTO tokens.
Note Social media videos is not a substitute for audited accounting.
Otherwise the only verifiable source of revenue entering Cloud Token is new investment.
In the “not collapsed because the majority of investors are building up their Ponzi points balances” stage. No regulatory action AFAIK.
Serial scammer, Simon Stepsys is promoting this heavily. Tells you enough. He hasn’t a single moral fiber in his body.
youtube.com/watch?v=1ZdSeajHe7s
This is gonna make great profit at least 10x.
For who?
When was the last successful “token” anything?
lmao! damn that’s funny
Why Not Posting My lengthy reply. To Many facts and NO BS Opinions like yours slanted to keep your Scam review Sight going!!
Don’t worry I will we disseminating you sleazy scam reviews here.
You’d be the dumbass crapping on about “liberal media” in the first sentence of his comment yesterday?
Yeah, if I see anything that doesn’t have to do with the review/article I just hit spam. Don’t have time to deal with nutjob loonies.
Thanks but I don’t think we need the promotion across the type of circles you’re in.
Especially if that means more illiterate rage against the machine types are going to rock up.
Just FYI Iâve participated in this now for close to 2 months. The program is growing and everyone is earning tokens daily.
Iâm aware how much you love to diginto programs and point out red flags which lead you to show everyone that itâs a ponzi scam.
I suggest to dig a little deeper into this one. Maybe open a wallet, put 500.00 of your own crypto (donât tell me you think crypto currency is a ponzi) and see how it works.
You can always withdraw it if you see something thatâs not kosher. At least this way youâll have an inside look and can make a fair assessment. BTW nobody is, as you noted stealing other peopleâs money.
The income comes from profitable AI trading which you can actually monitor on the blockchain. And the CloudToken tokens we earn are not as you say worthless.
When I started they were worth .30 US and 6 weeks later are worth .45 with the price rising regularly.
Please donât criticize something based on your perception without carefully examining it. Thank you.
I already know how it works. You invest real money into Cloud Token and they give you worthless CTO Ponzi points.
You get more CTO Ponzi points for doing nothing and the company assigns a madeup bullshit internal value to them.
Early investors cash out by stealing subsequently invested funds. Same old MLM crypto Ponzi story.
“The blockchain” is not evidence of external revenue being actually used to pay affiliates.
Please provide registration with financial regulators and filed audited accounting confirming external revenue of any kind being used to pay affiliates.
Oh wait you can’t, because Cloud Token is operating illegally.
Why would a legitimate MLM company operate illegally?
Answer: They wouldn’t. Cloud Token is just another MLM crypto Ponzi scheme.
Sure they are. If everyone in Cloud Token tried to cash out their tokens it’d collapse. Sorry for your loss.
Done and done. Stop making excuses for scammers.
It never ceases to amaze me how stupid some people can be.
I’ve followed a lot of “crypto investment opportunities”, I’ve joined Facebook groups relating to those opportunities.
They are all the same, everyone acts the same, excited and choosing their lambo colour at the beginning and then desperately hoping that someone will be able to withdraw their money at the end to give them a glimmer of hope they may not have lost everything.
Spoiler alert: they lose all their money.
That is what will happen to anyone posting in defence of this latest oppurtunity. You will lose all of your money.
It doesn’t matter if a leader in the crypto space has done their due dilligence. What does that even mean? You are willingly giving away your money with no hope of getting it back.
I do have some alternative opportunities that will give you the same return on your “investment”.
1. Burn your money
2. Set fire to your money
3. Put a flammable liquid on top of your money, light a match, and touch that match to your money.
You cannot go around and think that every single opportunity is a scam (Ozedit: Nobody did. Derails removed.)
Apple as a corporation has nothing to do with Cloud Token.
And the “Money” magazine piece was a paid advert in some bullshit Vietnamese publication. It’s not the “Money” magazine we have in the west.
Oz you have deliberately removed more than 95% of what I wrote which I find your attitude as a communist. (Ozedit: derail whinging removed)
You open a comment with bullshit that never happened, I skimread the rest and you get derail edited.
Still preferable to being a Cloud Token Ponzi shill.
That was a new one. I guess it’s a bit softer option than playing the nazi card, eh?
Oz I think we should have the freedom to have a look at what Tony wrote as this is suppose to be a forum where people should have the freedom to have an opinion.
Unless you have an agenda that only opinions that are aligned to your thinking then this is not a forum but purely people that hate MLM or any online opportunity.
You’re welcome to an opinion on Cloud Token.
You’re not welcome to open a comment with a premise that never happened and use it as a platform to derail rant.
You’re also not welcome to throw a hissy fit when I remove your derail rant.
There are millions of sites you can rant about whatever topic you want on. This isn’t one of them.
Why doesn’t someone just report these crooks to the authorities/regulator and get them investigated and shut down.
All the while they are allowed to operate they will simply carry on and reel in the gullible. It would be so much more productive than arguing the toss whether they are legit or not.
Or is it that the authorities just don’t care or ignore you when you try to have them investigated?
I just don’t get how these serial scammers continually join/start these things, cash out, jump ship then startup/join the next scam.
If I robbed a local 7/11 the law would be on my ass faster than a fly on sh*t yet these criminals seem to go on and on and on and on……
The reason a good chunk of the MLM underbelly has migrated to Asia over the past ~5 years is because regulation there is far behind the west.
Hey Oz I think we should be entitled to read on what people write in here as you are deliberately withholding information that we donât know about and have to believe on what you say and it only brings in haters of MLM to your forum.
You need be balance here and have people have their say in this platform and if this is they way you behave then this blog is nothing more than an anti MLM and a paradise for haters.
I couldn’t care less if you think you’re entitled to post offtopic derails and/or “what about” strawmans.
You’re not. Either post on topic or your comments will be marked as spam.
Spambinning comments that have nothing to do with Cloud Token or create false premises to springpad off onto an offtopic rant is neither “withholding information” or relevant to anyone actually looking for information on Cloud Token.
Last time I’m repeating myself. Any more whinging will be marked as spam.
The SEC is focused on 3 main areas; the sale of unregistered securities, pyramid schemes and Ponzi schemes.
In the SEC’s eyes, most cryptocurrency companies that are selling coins or tokens to non-accredited investors are guilty of selling unregistered securities that don’t qualify for exceptions under Reg D, as defined by the 1946 howey case ruling (i.e. the Howey Law).
MLM companies face additional scrutiny by the SEC as possible pyramid schemes or Ponzi schemes. Pyramid and Ponzi schemes are not the same thing.
Pyramid schemes basically lack real retail customers. The only people paying for products are the same people earning commissions.
The product value, if any, usually does not attract real retail customers outside of the income opportunity. The product is consumed internally by the distributors.
Many MLM companies have been scrutinized by the SEC as possible pyramid schemes. That is why many legitimate MLM companies have policies required 70% retail sales by their distributors.
Ponzi schemes, so named from Charles Ponzi in 1920, lack real retail revenue. They pay ROIs to old investors from new investor’s money.
A few infamous MLM Ponzi schemes of the recent decade include TelexFree and Zeek Rewards.
MLM cryptocurrency companies are a brand new animal, many of which have been shut-down or collapsed under their own weight as Ponzi schemes.
The problem with Ponzi schemes is eventually there is not enough new investor money to pay the interest to the ever-growing demand from old investors. That’s when the founder’s of the Ponzi scheme do a runner and disappear with the money.
Initially they will pay the too-good-to-be-true ROIs to create an image of legitimacy and encourage more and more investing to build the loot to millions or billions of dollars.
The most recent infamous MLM Crypto Ponzi scheme was OneCoin that bilked over 8 billion dollars from millions of innocent people.
Playing on people’s greed is the formula for a successful Ponzi scheme. People seem to lose all common sense with dollar signs in their eyes.
Some MLM Cryptocurrency companies are Hybrid Ponzi Schemes. They actually generate revenue as they claim but under close examination it is no where near what they are paying out.
Most people don’t dig deep to discover the source or quantity of the revenue. It is a clever facade to create the image of legitimacy. Most money being paid out in ROIs is still coming from new investor’s money.
All these companies need to do to prove that they are not a Ponzi scheme is to provide verifiable proof that they are generating sufficient revenue from their claimed sources.
Enough with all the marketing hype – SHOW ME THE MONEY source.
Hi Oz I have been watching how well Cloud Token (CLD) is doing and how Bookie mentioned that has increased in value to .45 USD not sure where getting his evaluation from thats not even close.
I have been following Cloud Token on Coingecko and as of now worth only $0.00175586 with just over $300 traded lost over 95% of its value even with those who are promoting this Crypto.
This alone tells you if people are making money its via from new recruits and not from Cloud Token.
To be honest I joined OneCoin when came to Australia and i did not believe in what you said about it well guess what you were spot on and I was the one that was niaeve.
OneCoin owners have a major lawsuit on their hands and I got out way before that could not afford investing, someone took it over so i moved on out of MLM circle!
You were spot on with OneCoin and now with Cloud Token those who come in last to invest will be burned like with any Pyramid scheme while Karma nipping at the ones at the top who have no compassion of ripping other peoples hard earned money!
All i have to say to those who are lookers is do your own research when comes to CryptoCurrency check out Coingecko its all there in black and white!!
It’s important to note that the internal value of any Ponzi points system is meaningless.
There’s never enough money in the system for everyone to withdraw everything at once.
A Cloud Token promoter challenged me to install the Cloud Token wallet so I could see that it was real.
They obviously didn’t consider my cryptocurrency technology background. I’ve installed, used and programmed many real crypto wallets.
So I took them up on the challenge. I downloaded the app from the Play Store and proceeded to install and use it. I, of course, needed to first create an account.
Interestingly, when I started to create an account it first asked me for a referral code. What? I have never seen a referral code in a real crypto wallet. It’s obviously related to the MLM nature of Cloud Token.
A referral code implies that my decentralized wallet is using the referral code to link me to someone else in the Cloud Token system. I just made one up and it allowed me to create an account.
It asked me to create a pin code, then a payment pin code. Afterward, it displayed a pneumonic set of 12 words. That’s normal for a crypto wallet. But surprisingly, there never was a public address or private key created or display for me.
Oops! every real decentralized wallet has both private keys and public coin addresses.
The wallet also displayed accounts for several real coins like; Ether, Tether, Bitcoin, Litecoin, Bitcoin Cash, TUSD, and DOGE. They claim that this wallet is a decentralized multi-currency wallet.
I could click on any of the real coin accounts in my Cloud Token wallet and select options to deposit or withdraw. When I selected deposit it displayed a QR code to deposit to.
Wait a minute, where is the private key? There is no private key for any of the real crypto coin accounts in the Cloud Token wallet. Every real crypto decentralized wallet has a private key. It’s the only way you can access your coins.
Who knows where the coin address belonged to that they wanted me to deposit to? It didn’t belong to me because I did not have the private key.
And the Cloud Token account in my wallet also had no private key. Real decentralized wallets are completely under the control of the user with no company or entity behind it.
I am the only one that should know about my wallet. But if you don’t have the private key you don’t own the coins. It’s that simple with cryptocurrency.
The wallet created an account number for me: 4282004464797xxx. That is not a public address or a private key. Real decentralized wallets do not have account numbers, they have public coin addresses and private keys.
Only wallets controlled by companies like Coinbase have a user account number to identify you in their system.
This is obviously a fake wallet that is under the control of Cloud Token. There would be no need for a user account number and especially not a referral code if it were a real decentralized crypto wallet.
The Cloud Token wallet displayed a price of $0.4690 for the Cloud Token. Where did this price come from since the token is not trading on any public exchange?
The price is obviously fabricated internally by Cloud Token to give the illusion that it has value. This is very deceptive and exactly what OneCoin did with their fake wallet.
The Cloud Token does not exist on CoinMarketCap.com, which shows the Cloud Token trading symbol of CTO as belonging to someone else.
Cloud Token is on the Etherscan.io blockchain explorer at etherscan.io/token/0xadc4ad38d5a719dd2c88382e0bc69969f643ae08. But it only has a total of 2 coin addresses.
There are no Cloud Token addresses for token holders on the Ethereum blockchain. The user’s Cloud Tokens are internally managed by Cloud Token and are not on the blockchain.
The Cloud Token (CTO) is nowhere to be found on EtherDelta.com or ForkDelta.com.
When you transfer real crypto coins to your wallet you are sending them to a public address owned by Cloud Token.
You are NOT sending them to your own secured private-key account to HODL as they state, because you do not have a private key, the fundamental security of the blockchain.
Funny, they are telling their users that they are in complete control of their coins and are just HODLing their own coins, and that Cloud Token is not using their coins in any way. REALLY!
If they are not touching my BTC/ETH that I am transferring to my Cloud Token wallet, then how are they paying out all the interest and sales commissions? Without touching my crypto coins as they claim.
And how could they even do arbitrage trading with my crypto coins without touching them?
To do trading on a public exchange the crypto coins must be transferred to an internal account at the public exchange.
That is how it always works. There is no magic trading while you hold tightly to your coins.
The user interface is designed well to give the impression that it is a real crypto wallet. The only problem is, it is missing the key technology components of a real crypto wallet, namely your own public coin addresses and private keys for each coin account.
The average Joe and Jane would not know this major flaw in the Cloud Token fake wallet.
Bob Wood, some great information there.
Is there a trail from the BTC or ETH deposited to the wallet that then is forwarded to an exchange? Ive seen on a couple of forums that BTC is just sitting there doing nothing.
There are some screenshots (probably fake) of Ronald showing his back office with $150 million being traded.
Surely the BTC movements should be able to be seen. Any knowledge of this?
Just a note on Ronald Aai’s social media marketing; even if some trading is taking place, it’s still not evidence of external revenue being actually used to pay affiliates.
Nor is it is a substitute for legally-required regulatory registration.
Take anything an MLM company shows you on social media with a grain of salt.
Yes OZ, i’m not believing it one bit. Im involved with an ongoing debate with some people pushing it hard. They are all hung up on it.
There is no showing actual completed trades. There is no proof of funds going to exchanges… So, just wondering if anyone knows any different on here…
Very informative blog. You are doing good job. Carry on.
All you can really see on the blockchain is coins transferred into and out of an Exchange. But you can’t tell where the coins came from that are transferred out of an exchange. They are held internally in an exchange account with everyone else’s coins.
You don’t know if they were earned from arbitrage trading or if they were just transferred from another account.
It’s very easy for scammers to transfer coins between several of their own accounts to give the illusion of trading volume. That is the technique they use when they pump a coin. They trade between themselves at an ever-increasing price.
They never really lose any coins but just keep them in different accounts. They just pay the transaction fees of the exchange.
This attracts real investors to buy at higher prices then the pumper does a dump to unsuspecting investors.
Wash, Rinse, & Repeat…
I haven’t taken the time to trace any coin addresses in and out of the exchanges. It would be very labor-intensive and in the end, wouldn’t prove anything.
You still have to go back to the common-sense questions of:
If they really could generate the claimed profits from arbitrage trading…
1. Why wouldn’t they just use it themselves and pocket all the profits?
2. Why wouldn’t they sell it to real investors for billions of dollars?
3. Why would they pay all the huge interest and commissions every month to a bunch of MLMers that do nothing?
Hmmm… Just wondering đ
It’s pretty messed up that these assholes can make millions of dollars scamming people and I am having major problems trying to raise funds for a legitimate business.
Sorry, I can’t pay 100% a month ROI, lol!
Bob to answer your question…why would they just trade and make profit for themselves..haha because they need to burrow your money to trade and make a success, claim their commission and pay the balance out to you.. so simple to understand similar to a bank taking your deposit and trade it to make higher gains while paying you below a pittance of interest for their effort.. haha got u here.
Can you also explain why would Jim Roger be involved in CloudToken launch in Bangkok when he clearly knows that this too is a Ponzi scheme!!
Surely Jim is too smart for his good name to be associated with a Ponzi crypto is it is not truly a 4th Gen blockchain final matermatics that Ronald has final beat the likes of Plus and Wo or even Onecoin!!
Banks make money on loan interest.
If Cloud Token actually had a magical bot generating returns sufficient to support token withdrawals with never-ending value increases, they’d just run it for themselves.
Honestly, how deep into denial do you have to be to not realize the bulk of returns/commissions Cloud Token are paying are just recycled funds?
Sure, right after you explain how Jim Rogers appearing at marketing events has anything to do with Cloud Token has anything to do with it being a Ponzi scheme.
Legitimacy by association doesn’t work.
Ronald Ai, no more than anyone else, can’t beat the laws of mathematics. When new investment runs dry in Cloud Token, kaboom and sorry for your loss.
These scams always try to cover up the lack of business fundamentals with marketing hype.
The bottom line is ALWAYS “Where is the revenue coming from?” It’s that simple. Forget all the marketing hype and answer that simple question.
Apply a little common sense here… If they really had the technology to generate the claimed profits from arbitrage trading, it would be worth billions of dollars, not just in cryptocurrency but in all public trading exchanges.
Think about it… If it were true, they would be shouting it from the roof-tops to prove they are legitimate and to attract an endless supply of money to trade.
And they surely wouldn’t need to pay out the crazy commissions and interest every month to a bunch of MLM people for doing nothing.
But for some strange reason, they are not providing any proof that they are generating sufficient revenue from trading to pay the claimed profits.
Why do you think that is?
If you can’t answer that obvious question honestly, then you are really chugging the koolaide.
Daily Cloud Token funnies from Ronald Aai on Facebook:
bUt ClOuD tOkEn IsN’t A sEcUrItIeS oFfErRiNg!
Not one country has securities regulation that exempts USDT. An investment contract is an investment contract, irrespective of the medium.
I heard the same story about changing their pricing basis from USD to USDT and I laughed out loud. They said this move would “avoid legality issues in Vietnam, Malaysia and India”.
Huh? That makes no sense whatsoever… Regulators don’t care which currency you compare yours to calculate your price.
That is completely irrelevant. Regulators care that you are selling an unregistered security and that you are promising returns on investment with no revenue source except new investors money.
They also said the Cloud Token price would be more accurate being linked to USDT rather than USD. Huh? Are they serious? Anyone with half a crypto brain knows that USDT is pegged to USD. They are the same. There is no difference.
These fools are getting hood-winked big time by the nonsense that is intended to distract them from the real truth – NO REAL REVENUE SOURCE.
That’s right… Just ignore the man behind the curtain. He’s not really pulling all the strings to create a false image of grandeur…
Malaysia,
Read more at thestar.com.my/news/nation/2019/07/16/currency-bill-2019-provides-for-hefty-fines/#slkUA2rXQaT5S0Wt.99
..haha I have been following Ronald Aai for 2 weeks..he seems to be real with all his works and his team of computer full stack blockchain Geek master!
Go check out his FB and follow him with the most online transparent work development.
It seem many of the professional MLM masters has began to jump ship from the many negative reports of Plus, One and many others similar get rich system today using Ai and MLM system to attract ordinary investor and players to follow him because they all knows Ronald is a good family man and he is not going to scam people and ran away but instead making ordinary people become financially more independent with this breakthrough 4th crypto bitcoin networking wallet using his homegrown Ai trading bot with Varoom and more computer algorithm system coing online to grow the pool..
but unfortunately the people at the top will grow much faster than the people at the bottom.. let see how far can my $500 earns me but the system is actually using the MLM formula of recruiting your downline and doubling your MLM scheme to work for you…
time will tell..but please don’t risk more than you can afford to lose. the wallet now has private key features for ETH..
Social media marketing is not a substitute for regulatory registration and audited accounting reports.
If you think Cloud Token isn’t a Ponzi scheme because Ronald Aai is a “family man”, you are everything that’s wrong with the MLM cryptocurrency niche.
..why Ronald don’t need main street fund manager (Ozedit: snip, nobody said anything about “main street fund manager”. Derails removed.)
Please keep your conspiracy theories to yourself. We only deal in facts here. Namely the fact that Cloud Token is a Ponzi scheme omitting securities fraud.
If you have any evidence to the contrary you’re of course welcome to share it.
But we both know there is none. Which is why you’re on here regurgitating scam excuses.
Greetings!
I was recently introduced to the Cloud Token Wallet and it sounded too good to be true which 99,9% of the cases means that it is not true.
I have now investigated this topic for days and can see and understand all the red flags. I am convinced that it will go bust and the creators will just walk away with the users money but there are to separate questions that still linger in my head.
1. If it’s a Ponzy scheme then why is it able to actually convert your Tokens in the CTO Wallet to crypto and withdraw it to a real wallet. (I saw it done so it’s not a speculation)
Do they expect majority of the users to Hold theyr Tokens wayting for theyr walue to rise to keep their “credibility”?
2. How long will it take till it goes bust? Taking the fact that I can take my funds out of it, can’t I con the conners and make some profit in a very short time?
Because nobody would invest in a Ponzi scheme if they blocked withdrawals from day 1.
Not indefinitely. The Ponzi points long con is getting in early, building your point balance up such that you can withdraw and replenish the point you’re withdrawing.
The early scammers show this to a bunch of gullible morons and they all pile in.
Critical mass is reached when enough gullible morons start withdrawing. Cue withdrawal excuses, “we got hacked”, someone died, DDOS etc. etc.
Same as any other Ponzi scheme: when withdrawals exceed new investment.
100%. Always. If you or any of your friends and relatives are searching online for the 0.1%, stop wasting your lives. It’s always a scam.
0ELG45656 – Google this for CTO credit raport. idk if its real but the director is named David Michael Dobson and so far I havent found that right David on the internet.
If he created this, why stay in the shadows and hide? -Well, ponzi đ
CLOUD TECHNOLOGY & INVESTMENTS P/L could be anyone. And it’s an Australian incorporation so its meaningless (fake data, ASIC doesn’t care).
I just checked out the cloudtoken wallet. I can deposit eth and withdraw from it and i can even export my private key. I’m assuming cloudtoken would have know my private key too.
I login to myetherwallet using the private key i exported and indeed it was my eth address at the cloud token wallet.
My concern is always my funds i don’t care about the interests yet.
1) Can cloudtoken move my funds that i deposited into without me knowing?
I know i can check on the blockchain explorer to know if anyone moved the funds.Or is there other ways that i do not know ?
2) If cloudtoken app block withdrawal of eth. Couldn’t I simply just go into myetherwallet using my own private key to move my funds out?
Does anyone know if cloudtoken can just block withdrawal from other platform with just knowing the private key? Or is there other ways that i do not know?
Hoping for some enlightenment here thanks
If paying you requires key input then Cloud Token has access to everything.
You can’t cut them out of the equation until the money you steal is in an external wallet/account that is not tied to Cloud Token in any way shape or form.
You absolutely can. You just have to live with the knowledge that the money you’ve made isn’t from market gain. It’s simply money stolen from other people.
If you are morally ok with doing this, then you will be morally ok with robbing an old lady.
Ok i understand how it works now. Depositing into CTO app wallet is one thing. From the CTO wallet you can access with your private key on any other platform.
But once you put the money from your wallet into their Jarivs trading, you are no longer in control of your funds.
And it all comes down to trust. If you trust the founder to take care of your funds and not get hacked or exit scam.
This looks and smells like OneLife. Ruja, you can come out now!
NO BLOCKCHAIN – NO BLOCKCHAIN – NO BLOCKCHAIN
I’ve identified the flaws in the Cloud Token business model many times, that they have no proof of generating revenue from arbitrage trading as they claim… and their claims of having the technology to generate great profits from arbitrage trading don’t pass the common sense test.
But now it gets a lot worse. This is looking more and more like OneCoin. Basically, they have NO BLOCKCHAIN. It is nowhere to be found.
I’ve looked on CoinMarketCap.com, CoinGecko.com, Etherscan.io, and on their own website at ctotoken.com. I’ve searched the Internet with Google and it does not exist.
Google has everything indexed down to aunt Martha’s favorite chicken soup. But the great Cloud Token Blockchain somehow doesn’t exist.
How foolish of them and OneCoin. They could have at least faked it with an ERC20 Ethereum token. But of course, then everyone could see the transactions or lack of transactions.
In their company video, they state that the Cloud Token is built on 4th Generation Blockchain Technology and that it can do 1M transactions per second with a block time of 1 second. REALLY?
On their own company website at ctotoken.com/what-is-blockchain-4-0/, they state “One important thing you need to know is that blockchain 4.0 is not here yet although there have been a lot of insights as to what it highlights concerning its purpose.”
WHAT? IT DOESN’T EXIST YET? How are they doing 1M transactions per second then? with 1 second block times? Hmmmm!
Also on the same company website, they define Blockchain 4.0 as “We all know the many things the blockchain offers. Now, imagine an advanced form of that. Thatâs what Blockchain 4.0 is.”
That is beyond laughable. This is their technical definition of Blockchain 4.0. What a joke!!!
These guys are not even good technologists, but boy can they crank out the marketing hype… just like OneCoin.
I wonder how long it will before Ronald Aai goes into hiding like Dr. Ruja? What a lovely couple they would make…
If anyone tries to recruit you into Cloud Token, ask them one simple question… Can you show me the Cloud Token Blockchain Explorer? And not in the fake Cloud Token Wallet.
There is NO BLOCKCHAIN, NO BLOCKCHAIN EXPLORER, and NO GITHUB REPOSITORY of the Cloud Token source code. Every legitimate cryptocurrency coin or token has all three of these.
OneCoin didn’t have any of these things either, just a bunch of hype.
This would be so laughable if it wasn’t already so sad that so many people are getting ripped off by conman taking advantage of ignorant people about a new emerging technology that will change human culture – when done right.
Bob Wood, can you provide the link to the video that claims to have one million transactions per second?
I have not come across that before. I assume 1M = 1 million.
Cloud Token Claims 1,000,000 transactions per second
youtube.com/watch?v=ylILps0MQIs&t=89s
at 0:53 seconds.
And it claims a 1 second block time at the 1:00 time marker.
All of this on the AURAE technology backing the BBS.
Interestingly, BBS, AURAE, and Cloud Token all list Ronald Aai as their CTO.
I took the time to read the AURAE whitepaper and I reviewed their Github repository. All they had in GitHub was some basic Solidity code for an Ethereum ERC20 token.
In the AURAE whitepaper at docs.wixstatic.com/ugd/3a80f9_5d8347fa35dd4e71a6d32e0256970f28.pdf it states that the technology is in the proof-of-concept stage and has not been developed yet. And that they are conducting an ICO to raise funds for the software development.
The ICO Token Sale apparently never happened because the token on Etherscan.io at etherscan.io/token/0x9147777b132557414ced47b3e9528983c3ec5d25 has 2B tokens and zero token holders.
And the Cloud Token company website at ctotoken.com/what-is-blockchain-4-0/, in the section “What does Blockchain 4.0 have to offer?”, states âOne important thing you need to know is that blockchain 4.0 is not here yet although there have been a lot of insights as to what it highlights concerning its purpose.â
The question would be then, where is this blockchain 4.0 that does 1,000,000 tp/s? If the company says it doesn’t exist yet? and the technology whitepaper says they are only in proof-of-concept? and the token sale to fund the development didn’t happen?
Just a few more red flags for any objective observer…
Now honestly, I suspect that Ronald is a pawn in the whole Cloud Token scam. He is listed as the CTO and he has a technical background going back several years before Cloud Token.
He has no business, sales or network marketing experience. Somebody must be managing the business? Why is this being hidden from the public. It’s not Ronald, he has no experience. Ronald is being used as a frontman for legitimacy. He probably needed money to forward his projects and some MLM scammer made him a sweetheart deal.
I saw the same thing in Dallas with a scam MLM company called BitQyck that got shut down by the Texas Securities Commission.
They paid a crypto technologist for his name and association for legitimacy. His name is Mark “Rizzn” Hopkins but goes by the name “Dr. Bitcoin”.
I know him personally. He regrets being associated with them but he probably needed the money at the time.
That Zeng guy or however you spell it from World Blockchain Forum. He seems to be at the center of all these WBF token app Ponzi schemes.
Whether he’s kingpin or there’s someone higher though, who knows. Asian crypto Ponzi schemes have many layers.
Sheng Zhao (or Zhao, Sheng in Chinese) is the public face behind the WBF.
You are probably right though, Oz, the kingpin behind these multi-billion dollar scams would probably not put his name and face out publicly.
The Chinese culture is notorious for vigilante justice, leaving the perpetrator lying dead in a back-alley somewhere.
In the same way that Ronald Aai is probably not the brains behind the Cloud Token scam. He’s is probably just some desperate techie with questionable morals that was offered a sweetheart deal.
Cloud Token is picking up steam around the world accelerating its eventual collapse when not enough new money is coming in to satisfy the ever-growing mountain of old investors.
Lim, of course, they have your private keys. A public coin address is technically derived from a private key. The private key is required to create a public coin address.
There is no such thing as arbitrarily creating the private key later. It was always there from the beginning. They were just keeping it hidden from people, apparently until they got enough pressure to have to reveal them.
The fact that they are releasing them now means they have access to them also. If they have your private key they have complete access to all your coins/tokens at that address.
Cloud Token can take all your coins/tokens from any account they create for you, for which they have the private key.
Cloud Token Trust is an Oxymoron.
Private key is in the upper right hand corner of the wallet that you click. They are reading you guys objections and making these fixes to each and every last one of them. The CTO is paid out in ETH, a real Coin.
There is a real products behind Cloud Token, go to Roku TV and look up Cloud Token TV with Amazon Fire and Apple TV coming next week. Merchant service for MastrCard in Southeast Asia and other services lines up.
All of the Transactions can be traced to and from JARVIS and you see the profits in the blockchain being made. CTO is a reward for storing some of your cryptos in the wallet, don’t ned new money to come in because the Robot that you can see on Youtube demonstration is making profis daily.
In a recent webinar Ronald himself have said that they have applied for all of the required licenses needed to run fully legiimate and going through the audit procedures now.
Same way it took them time to get on ROKU , same way with other Procedures. Watch closely before being very critical of everything.
Everything is not a scam guys, watching and participating to know for sure. This could be the one wallet that does work.
I don’t think the guys aim is to rip people off. Ronald Aai himself is a very public man and has patents in his name on Cell phone technology.
Except for the most important one: Cloud Token is illegally offering securities to its investors.
None of this means anything because Cloud Token is operating illegally.
Social media marketing bullshit is not a substitute for legally required registration with financial regulators.
Either you’re operating legally or you’re not. Either Cloud Token has registered with the Bank of Malaysia, SEC in the US and all the other financial regulators in countries they are soliciting investment in, or they haven’t.
There is no in between. Again, you’re being fed social media marketing bullshit.
Registering with financial regulators requires Cloud Token to disclose financially relevant due-diligence information to its investors and the public.
There’s a reason they haven’t and won’t do it, because revealing new money is being used to pay existing investors confirms Cloud Token is a Ponzi scheme.
I’m looking into finding info about their registration with a regulatory body. In post #70 you mention that the ASIC registration is invalid.
Why would that registration be meaningless? Does CT say it is their registration with a regulator?
Please elaborate đ
Thanks
ASIC registration isn’t invalid per say, it’s a thing – but for the purpose of due-diligence it’s a joke.
ASIC literally don’t care what you register with them and as far as the MLM industry goes, they have no track record of holding scammers accountable.
Scammers register with ASIC so they can hold it up and go “see, we’re registered!”. There’s no verification of details registered with ASIC.
Then there’s the issue of Cloud Token (and all the other (we registered in AU/NZ/Vanuatu scams) having no business operations in these countries.
At best the ACCC can deregister them. And then Cloud Token will go find some other scam-friendly jurisdiction to register in.
Finally if you want to get purely technical, ASIC registration also only covers investment in AU. It doesn’t make soliciting investment in other jurisdictions legal.
Despite ASIC shell registration (who is CLOUD TECHNOLOGY & INVESTMENTS P/L?), Cloud Token still operates illegally everywhere else in the world.
CryptoForLife – Oh My… Where do I start.
It doesn’t matter that you can now access your private key. The point is that your wallet is not decentralized, but is centralized and under the control of the Cloud Token company.
They have your private key and they can withdraw your coins and tokens anytime they want.
Roku TV is not a product. Roku offers its own, totally-free channel-building system available at developer.roku.com. You simply sign-up and follow the instructions to develop and launch your own channel.
This is not a revenue-producing product for Cloud Token. It is smoke & mirrors hype in an attempt to create credibility. Cloud Token paid a programmer to build a Roku channel. Big Deal! any programmer can do that.
Cloud Token TV on Amazon and Apple coming soon… always future speak, but it never happens.
What valuable TV content does Cloud TV have that might be interesting to a TV audience? How to get-rich-quick in an MLM Crypto-Scam?
All this talk about merchants accepting Cloud Token is just ludicrous. The Cloud Token is not listed on CoinMarketCap.com, CoinGecko.com, Etherscan.io. It is not publicly traded anywhere. It has no public blockchain and explorer.
Google “Cloud Token” and you will find that it does not exist anywhere on the Internet except on the company website. And you think merchants are going to just accept Cloud Token with no way to get their money except trust some private shady company? Give me a break.
Merchants would be far more likely to accept bitcoin but the market is not ready yet for cryptocurrency payments. The only merchants that might signup are MLM affiliates that also happen to own a small business and are drinking the Cloud Token Koolaid.
This is the exact same story that was spread by OneCoin and BitQyck about a merchant network. It’s all hype.
You can NOT trace the transactions to and from Jarvis and see the profits in the blockchain being made. All the blockchain can do is record transfers from one address to another.
That’s it. That’s all a blockchain does. It does not report profits. It does not know the net variance between all Jarvis buy and sell orders. It does not know who Jarvis is. It does not know the exchange rates between cryptocurrencies. It does not know the transaction fees charged by the different public exchanges.
Moving coins around from address to address does not constitute a profit. And there is no way for you to see on the blockchain if Cloud Token is earning the sufficient profits that they are claiming to pay out the promised 20% – 50% in monthly interest and sales commissions.
And Cloud Token has never disclosed the data to prove they are making these profits from arbitrage trading. The only verifiable source of revenue is from new investors.
Use your head for a minute… If they really had the technology to generate these kinds of profits why in the world would they pay a bunch of MLMers all this money every month?
If it really worked, real investors would pay billions to get their hand on it. Heck, Faith Sloan said in her video that Ronald Aai was rich and didn’t need anybody’s money because he sold his last company for $42M.
Then, why didn’t Ronald just use his riches to fund the arbitrage trading bots? He would be a gazillionaire… Wipe the crusted greed from your eyes and think about it…
As Oz said, Cloud Token is not registered anywhere to sell securities. Registration in Australia is a joke, there is no enforcement and the scammers know it, so they always register there.
That registration is just a business filing like you would file a DBA in the USA. It is not an approved registration to sell securities.
That requires sufficient financial disclosure that Cloud Token would never pass. Again, Ronald always talks about what they are going to do in the future.
Don’t hold your breath, these scammers usually disappear with all the money just before they collapse.
Here is another new tidbit for you to chew on that hasn’t been discussed yet. What was Ronald Aai doing before Cloud Token?
It just so happens that Ronald lists himself on his LinkedIn profile at linkedin.com/in/ronaldaai as the Technical Director and CTO of Plaza Systems from Jan 2018 to Present.
According to icobench.com/ico/plaza-systems, they did an ICO from 4th Oct 2018 to 28th Feb 2019 and they raised $7.6M. That was just earlier this year right before Cloud Token started.
If you go to the Plaza website at plaza.systems you will see Ronald Aai prominently listed 3rd on the team as the Technology Director.
Scroll to the very bottom and you will see all their social media communities. Clicking on every social media community reveals that they are all dead with no posts for over 9 months.
The only post found was from an investor saying “Where are you, it’s been 6 months”.
After they raised $7.6M in an ICO earlier this year, they just disappeared. And YES, Ronald Aai was one of the officers of Plaza Systems.
Just a note on ASIC Bob, registration with ASIC does give you permission to sell securities in AU.
The problem is ASIC don’t give a shit unless you target Australians.
So these scams register with ASIC using bullshit information. Then so long as they don’t take off in Australia, nothing happens.
If a scam registered with ASIC stops paying its registration fees, after a few years it might get a sternly-worded letter threatening de-registration.
That’s as far as ASIC goes with respect to securities regulation though. They are the UK Companies House of securities regulators.
It’s also interesting that the supposedly squeaky clean reputations of Ronald Aai and Dr. Ruja eventually unravel. But most people never know the truth until investigators start digging deep.
Besides the uncovered shady reputations of the people, The whole deal just fails all business, legal, and technology tests of common sense.
Why would anyone with half a brain fall for this stuff?
Oh yeah… GREED!!!
***** RONALD AAI BACKGROUND CHECK *****
This got buried in a previous post and deserves repeating.
What was Ronald Aai doing before Cloud Token?
It just so happens that Ronald lists himself on his LinkedIn profile at linkedin.com/in/ronaldaai as the Technical Director and CTO of Plaza Systems from Jan 2018 to Present.
According to icobench.com/ico/plaza-systems, they did an ICO from 4th Oct 2018 to 28th Feb 2019 and they raised $7.6M. That was just earlier this year right before Cloud Token started.
If you go to the Plaza website at plaza.systems you will see Ronald Aai prominently listed 3rd on the team as the Technology Director.
Scroll to the very bottom and you will see all their social media communities. Clicking on every social media community reveals that they are all dead with no posts for over 9 months.
The only post found was from an investor saying âWhere are you, itâs been 6 monthsâ.
After they raised $7.6M in an ICO earlier this year, they just disappeared. And YES, Ronald Aai was one of the officers of Plaza Systems.
You keep screaming SEC but thays a joke the SEC is just a barrier to keep regular people put great investments for the most part. And they actually are one of the only tokens not violating SEC laws.
Since the token is earned and not purchased through an exchange or ICO its not a security. This is rare in the cyptocurrency space. Its vert very transparent system and trading.
I just started and won’t participate in the referral side if it but just to gain intrest and use as a wallet is a great ideal.
I’ve been in the cyptocurrency space for a while and can tell you this is a great wallet and ecosystem. No hidden fees or lock up periods.
If you have to make up conspiracy theories to justify stealing money from people, you’ve already lost.
There is no country on the planet that states that as an exception with respect to securities fraud.
As for transparency, there’s only one reason an MLM company would opt to operate illegally: it isn’t doing what it says it’s doing.
If Cloud Token was indeed using external revenue to honor CTO withdrawals, they’d have no issue registering with the Bank of Malaysia, the Monetary Authority of Singapore and the SEC for a start.
The reason they don’t is because doing so requires financial filings, which would expose the Ponzi scheme.
Also the mobile app is an exchange. It’s a closed-loop system through which Cloud Token sells its investment opportunity and pays returns.
In any event, the vehicle a company uses to operate a passive investment opportunity is irrelevant.
It can be fiat, cryptocurrency or a Ponzi points token like CTO; It’s still a security and requires registration not just in the US with the SEC, but in every jurisdiction securities are regulated.
Let’s clear up this securities question once and for all.
Cloud Token Security Investment
1. People invest $500
2. In the Cloud Token Company
3. Expecting 6% – 18% monthly profits from the efforts of Cloud Token’s “trading bots”
The fact that Cloud Token isn’t really producing sufficient profits from trading bots is a moot point.
Even though they are really just a Ponzi Scheme paying old investors with new investor money, they are also violating securities law by selling an unregistered security.
When you want to make money online there’s always risk.
When I first started working online over 4 years ago I went on sites like this to see what people said about 4 businesses I got involved in. There was a lot of negativity about them.
The word ponzi was very loosely used from people who who clearly knew nothing about those businesses. All 3 businesses are still running and still paying out to this day. I’m so glad I didn’t pay attention to those ‘opinions’
Do your own research and be strong enough to make properly informed decisions.
When people get burnt with things like OneCoin it clouds their judgement when looking at other things. Each opportunity should be judged independently and intelligently.
Not everything out there is a ponzi scam.
If you are looking at Cloud Token give it the the time it deserves to prove itself. Time will tell. It’s too early to make judgements. So far it’s delivered everything expected of it.
Often some opportunities online are not necessarily Ponzi schemes, but they were poorly managed and as consequence had to close it’s doors. There were a lot of bitcoin mining companies that went down the pan.
Most were genuine but Bitcoin price goes down and its no longer possible to generate profits. Unexpected circumstances can bring a business down. I heard a lot of people then calling mining a scam then.
Make well informed decisions. Don’t always listen to people who have been previously burnt. Their judgement is usually very clouded.
Then there are people who never get involved in anything yet love sitting on the sideline waiting to say I told you so.
If people have been burnt a lot they should be learning from their mistakes. Making mistakes should make you better at judging new opportunities.
I’ve made some dreadful mistakes in the past, but that’s made me very astute at understanding how to judge a new opportunity.
Learning from mistakes is key to any kind of success.
Give Cloud Token a chance before you completely dismiss it.
Don’t give up on trying to make money online. There are things out there that are very, very genuine run by people that care about the people in their business.
A Ponzi scheme is a very specific definition. Just because you’re OK with scamming people through Ponzi schemes doesn’t make them any less of a scam.
As for risk, it is mathematically guaranteed that the majority of investors in a Ponzi scheme will lose money. Risk isn’t a factor.
That’s precisely what this review is. There’s no opinion about it, based on its business model it’s a fact that Cloud Token is a Ponzi/pyramid hybrid.
Cloud Token isn’t a mining company. Furthermore to date I have no seen one legitimate MLM cloud mining opportunity. Every single one of them has operated illegally by offering unregistered securities.
This is advice from scammers, because once you hand over your money it’s gone and they don’t give a crap.
I’m not a scammer, I’m just a participant. I don’t go out recruiting people into things. I do it myself at my own risk. I’m just giving you my opinion.
(Ozedit: derails removed)
It’s fine to admit you don’t know how ponzis work, you know.
Every cent you make over your initial deposit is somebody elses’ money, so, you ARE a scammer, no matter how you chose to rationalize or justify your participation in Cloud Token
I see no mention that this has been talked about before, but it seems that the Cloud Token AI Jarvis Arbitrage Trading Bot is rip-off from open source project “Zenbot”.
Here is scammer Ronald Aai showcasing the Cloud Token trading bot: youtube.com/watch?v=vO5_2Jiq3NI
Here are some pictures of Zenbot running:
github.com/DeviaVir/zenbot/issues/1514#issue-306278836
github.com/DeviaVir/zenbot/issues/868#issuecomment-353675634
jaynagpaul.com/algorithmic-crypto-trading
Doesn’t it look familiar?
Yeah, it looks like “Jarvis” is just Zenbot. Watching both in operation – they’re identical. Good catch.
Zenbot is free and open-source linux software, so they can add to it if they want. That’s probably where the different bot versions come from.
All of this should of course be disclosed in regulatory financial filings. And it should be obvious that none of this is enough to fund an MLM opportunity over invested funds.
Whatever Cloud Token does or doesn’t make through Zenbot is dwarfed by the recycling of invested funds to pay ROI requests for their top investors.
Otherwise Ronald Aai and his team would just be quietly running Zenbot for themselves.
Yeah. And there is no proof that Cloud Token scammers are actually making money with the Zenbot.
Or even doing proper arbitrage trading. What also caught my attention is that, Ronald Aai says in the video I linked (around 0:28 timemark) that they don’t even have access to the Binance “premium API keys”.
It’s my understanding that it’s practically impossible to do arbitrage trading without putting lots of money and effort to get premium access to the exchange data. (See, for example: bloomberg.com/news/articles/2019-04-15/-flash-boys-trading-bots-are-running-wild-on-crypto-exchanges)
Arbitrage trading is an arms race to get the signals from the exchange before anyone else, and if someone is doing arbitrage trading on Binance, it’s those who have “premium everything”, not Cloud Token clowns.
I wonder what the Zenbot lead developer Chase Sillevis thinks about the fact Zenbot is used to facilitate a ponzi scam?
The Zenbot MIT License copyright holders Carlos Rodriguez and Terra Eclipse, Inc. might also find this abuse of Zenbot interesting…
From the research I did this morning it seems official ZenBot development has been abandoned.
Looks like Cloud token has actually several âtechnicalâ problems.
Since a couple of days withdraw or conversion are pending.
Some people (Leaders?) said it is now working again but most of the others users are just complaining.
First the culprit was Ethereum (transfer overload) , them the Cloud Token risk management system.
Ronald Aai said that his team is now working on the problem (Ronald Aai Facebook account):
InterestingâŚ.. let see how many time it will take to solve this problemâŚ.
Additionally to “Awaiting”, “Failed”,”High Traffic, try later again” some user are also getting this error message “insufficient Crypto balance” (not enough money? uhh?..)
yOU ARE the unknowable reviewer on planet earth. People in Cloud Token has already paid for homes and vehicles.
If you don’t know its ok to ask, rather than spread false rumors. I hope your company succeed on truth rather than lies.
Boasting about using stolen money to buy houses and vehicles doesn’t change the fact Cloud Token is a Ponzi scheme.
Get some class, geez.
The more I research Cloud Token the harder I want to laugh xd.
Personally I’ve collected to myself 18 different reasons indicating It will collapse. And the people around me are getting just more and more in to it.
How come people fail to realize that scams improve over time just as does everything else.
Scammers learn from their previous scams and see what could have been done better to make their next one even more believable and profitable.
And the bigger scam the more effort they put in to it. This is how their career ladder works.
Still problems by converting. Binance is now the bad boy. CT wants to restrict converting to two times a week.
Sure you can earn some money – as in every Ponzi scheme when you join early and build your network. Of course if you don’t care that you put your friends in it, and they will loose.
The funny question here, before joining (even if you don’t care about morality) is how much time does it take before you go to zero.
Let’s assume you invested 100 units of money (not important if its a BTC, $, âŹ, etc.). They say you can have like 6-10% ROI (let it be monhly), so you’ll need from 16 to 10 months to get your 100 units back.
You’ll get the payout in CTO – need to convert them to Ethereum (0,5% transaction fees – makes it 5,5% – 9,5%).
Depending of what you do it might be even 1,5 year to earn what you put into (if it will last that long).
Unless you create large network and earn more of it, there is very little change to even finish profitable before it collapses.
So the only way to really earn something here is to join really early and build a huge network, then leave ASAP.
(Ozedit: derails removed)
Here’s the fundamental problem from a technology perspective.
Blockchain technology is trustless. You don’t have to trust any central authority, no central banks, no governments, no companies, and no people.
The open source blockchain technology verifies every transaction so you don’t have to trust anyone.
And anyone can review the technology source code and the resulting blockchain data to verify every transaction.
So, where is the Cloud Token blockchain software and blockchain data? It does not exist. There is no reference or link to any github repository containing the Cloud Token source code.
And there is no Cloud Token blockchain. They don’t even have blockchain explorer. Every one of the 4000+ traded cryptocurrency coins and tokens has a blockchain explorer. That is the only way the average person can view the transactions.
I asked Ronald Aai directly where is the Cloud Token Blockchain Explorer? He said it was coming soon…
WHAT? They’ve distributed millions of Cloud Tokens but there is no blockchain explorer to see the transactions. You’ve gotta be kidding me…
Ronald implies “JUST TRUST ME”, it’s all coming soon, or you can see it on our website or our wallet.
That’s exactly what OneCoin said. They had fake wallets and fake exchanges, but no blockchain or explorer for independent 3rd-party verification.
That’s not how blockchains work. Real blockchains are trustless.
Cloud Token fails the Technology test as well as the Legal and Business Tests.
And the funny thing is when you look at the Cloud Token CTO token on etherscan…
etherscan.io/token/0x64c7da318530f02f36225107786ab6963bf6add8
… You’ll find that there has been only five CTO transactions ever made. The newest of them was 170 days ago.
Next time ask him also about the open-source Zenbot he is using to dispel the myth that it’s something he coded himself.
Hi Oz,
I was hoping you might be able to help me. I live in Australia. With Cloud Token being registered with ASIC, does that mean it is legal here?
My parents have been âsucked inâ to this scheme and I hoping to give them enough information to show them it is a scam.
Thanks for you help.
No. It’s a shell registration with no followup documents.
You can check filings with ASIC and confirm Cloud Token has not made legally required disclosures regarding their trading activity.
They won’t do anything about it though till 2030. If you’re lucky.
I know it’s hard but this should be happening in reverse. They should be able to show you legally required financial disclosures regarding Cloud Token’s claim it uses trading revenue to pay withdrawal requests.
Then there’s the issue of there being no retail offering. 100% of commissions paid out in Cloud Token are tied to affiliate investor recruitment, making it a pyramid scheme.
Practically speaking neither the ACCC or ASIC are going to go after Singaporean Ponzi schemes operating in Australia. But that doesn’t make Cloud Token any less illegal.
Oz, thank you for your prompt reply and information. Much appreciated.
No worries. Good luck.
share-your-photo.com/1a4bd2d0f3
For example, the German Carsten Stolle from Berlin advertises the Cloud Token fraud on his website
stfr.de/cloud-token-app-invite/?id=0256456105
The contact details of Carsten Stolle:
share-your-photo.com/04d4d065a3
A photo by Carsten Stolle:
share-your-photo.com/6059b335b7
i actually emailed Jim Rogers to ask him about his attendance at the cloud token event, he replied saying heâs paid to speak at the event but doesnât use nor endorse cloud token and will sue anyone who claims he does.
i think itâs poor judgement on his part to speak at such event without vetting through it and now his image is being misused as implicit support.
I always say if these guys can make 10-12 % per month wWhy do they need your Money!
Why do they need your money if they own the âGold Mineâ?
Bitcoin Rodney Burton is pushing the new Cloud Token SIM card demo where you can call anyone for free on WhatsApp, Facebook, Telegram etc.
This technology is out of this world. We have been blessed guys. Pass this to every human being that breaths…
>> facebook.com/100000502973278/posts/3149210608439007?sfns=mo
Do you still think that Cloud 2.0 is a scam ?
If you’re paying for data (50 CTO for 4 GB) then it’s not free is it.
Yes for Cloud Token affiliates it’s imaginary tokens but on the backend whose money do you think Ronald Aai is paying their merchant supplier with?
Oh and this is why all this smoke and mirrors garbage is being trotted out (Facebook 1 hr ago):
Cloud Sim and all the rest of it is OneCoin’s Dealshaker… Nobody cares if the returns aren’t being paid out.
I installed the software and tested with a small amount of ETh (0,06….).
Here’s my data (removed on request). Transfered my ETH to Cloud Wallet (removed on request). Cheking analytics and balance of the the account is somewhat alarming.
Also the strange thing is that their website is created with Wix. Which accountable dev. company is doing that? (I’m working in IT as a company owner and it’s really funny to me).
Sorry, still wanted to publsh Cloud Wallet’s ETH account as this is public information: etherscan.io/address/0x3b921f0f543cfdb3fe9797911267e14382d8db7b
I m just new to cryto, and i am participating the cloud wallet project. I have some questions want to ask. (Hope the questions not too stupid)
1. The mobile apps “cloud 2.0” can be published at google play store & apple apps markets, does it means the apps is safe and trustable?
if it is a scam, will the apps store simply publish it? I not sure how hard was the investigation taken by the apps store.
2. I saw a photo on a cloud community group. The photo stated that the CLOUD TECHNOLOGY & INVESTMENT paid the goods & service tax. Does it means that the company is actually making revenue?
share-your-photo.com/fb0643d031
3. About licensing (Ronald Aai interview with Tony and Lulu)
I totally didn’t know what is the license that mentioned above. Is the license is “stronger” and enough to prove it was not a scam?
I appreciate that if someone can answer my questions. Thank you.
Hello, I want to put some information on your desk as a cloud token shit user.
my investment of 1200usd in eth has been pending for over a month. I’m waiting for a payout, and that’s not happening.
support? does not respond. my sponsor? is rude to tell him about my problem. a friend has the same problem. can not get paid its usdt.
the reason is to be an overloaded eth network. I’m getting angry and I’m planning to contact the finance control office here in Switzerland to file with some other injured users.
if you have the same problem. write me.
@jack
The app itself isn’t a Ponzi scheme, it’s just connects to Cloud Token’s backoffice and returns an imaginary points CTO balance.
You’d have to ask the app stores why they’re comfortable hosting an app used to commit financial fraud.
Shell companies in Australia used to launder funds have nothing to with Cloud Token, which is a Malaysian company.
GST is also mandatory in Australia. Even shell companies have to register for it.
Securities in Malaysia are regulated by the Bank of Malaysia. Either you’re registered with the BOM or you’re not.
Cloud Token is not and therefore is and continues to commit securities fraud. Cloud Token is also not registered to offer securities in any market it solicits investment in (shell companies with different names used to fool regulators don’t count).
And in any event, hasn’t it struck you as strange Cloud Token is only now talking about regulators?
Financial regulatory compliance isn’t something you get around to after illegally collecting who knows how many millions in investment. You’re supposed to be registered prior to soliciting investment.
And no, registering after the fact doesn’t negate prior acts of securities fraud.
@Pepenc
I was going to wait roughly a month before putting an article out.
From what I’ve seen Cloud Token affiliates haven’t been able to withdraw since Oct 20th or so. What was the date you put in your withdrawal requests? (screenshot please if you don’t mind)
@oz
I’d like to show a screen shot, but I don’t know how to put it here.
date is with my friend 11.10.and with me 25.9. . We have to wait to see if we can get our money. According to an official report, the Cloud Token is due to be ethically loaded and individual transactions will be paid manually to that system.
so we wait and let me know. is yours here more than me? damaged?
You can take a screenshot with printscreen, save it with an image editor and then either upload it somewhere and link or send it as an attachment via the contact form.
Hello,
Does anyone know how to get your money out of CT? I have a friend that has $1,500 in there. Just seeing if anyone knows the best solution. Or is it gone FOREVER? lol
Thanks!
Nope. You invested in a Ponzi scheme and Ronald Aai and friends stole your money.
Sorry for your loss.
I was thinkinking the same, Oz.
i can not believe it. cloud token has their own channel on roku now. if you have a roku you can install the cloud token app and watch them on tv.
these ponzi’s are really going high tech now.
Watch what?
Just more smoke and mirrors so investors don’t think about no withdrawals since October.
There’s nothing high tech about it, if you have the videos it’s no more complicated to put them on a Roku channel than to put them on YouTube, or on a website.
There’s a company that I won’t give free advertising to, but it’s an established name in the field, which offers turnkey Roku channel packages, with all the setup and other technical stuff taken care of, starting at $24 a month.
Their most expensive option, with lots more storage and bandwidth, is only $249 a month. All you need to do is upload your files to an FTP server.
All of which is hardly surprising, a Roku box is really nothing more than a computer running specialized browser software, and what they grandly call a ‘channel’ is the equivalent of a website.
Is any one no how to get money out of cloud koken.
Cloud Token is a Ponzi scheme. It collapsed last October.
Nobody has been able to get anything out because Ronald Aai and friends stole it all.
Cloud Token is a scam, donât bother arguing with anyone who says otherwise. I am a victim.
This app was first introduced to me by a popular YouTube Binary Options promoter called Cristian, he owns the YouTube channel called BLW Online Trading; I later discovered that this guy is fond of promoting fraudulent apps and MLM systems.
After putting my hard-earned money in the CT Jarvis system since September 8 2019, they promised 10â12% monthly ROI, I requested for a withdrawal on 30th November 2019 and this is February 2020, yet the request is still processing.
I contacted them severally via email and in-app help, they replied and said they have bunch of withdrawal requests.
My advice is kindly consider before putting in your hard-earned money.
Thank you.
@oz
Is there any chance to gather people and sue the company and the owners? Where we could do that?
That’s a lawyer question. I am not a lawyer.
About 1 1/2 years ago Cloud Token offered to repay if you went through some hoops to fill out their forms, which I did.
There is still a skype group with people griping their new “wallet” for CT 2.0 isn’t doing what they said it would.
I haven’t gotten a penny back from my request. Does anyone have any information on how to locate them.
I’ve filled a complaint at econsumer.gov which is an International Agency to help recover funds.
Any information on them would be helpful as I would like a group of us to get together to find ronald Aii and his cohorts and prosecute.
Cloud token basically ran and designed by a group of series Ponzi syndicate. If you look at the people hiding behind, most of them are in Singapore.
Police report of few victims maybe useless, we need many victims file police report and clearly indicated transactions hash etc c those are useful informations to provide.
I also am a victim of the Cloud token Scam. I see they have the same people doing this over and over again. Going on for many years! I was a victim from 2015.
I will forward my information to the Ponzi scheme Police. Believing that thousands of us will do the same.
Unfortunately this isn’t a thing.