Plus Token Review- Scam Broker Complaint
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plus token Review – An Introduction
Plus token was a Chinese based cryptocurrency exchange that was actually a ponzi scheme. The company was quite famous in Korea and China. At one point of time Plus token was the third largest cryptocurrency platform in the far East. This was partly because it attracted the interest of a lot of novice traders and investors. The platform was closed in June of 2019 after the fraudsters absconded and left a message “sorry we have run”.
About plus token
As mentioned earlier Plus token attracted the attention of a lot of first time traders. This was achieved by advertising Plus token as a very high yield investment program that would payout massive rewards on different investments. Their advertising suggested between 9% to 18% returns, with even higher returns based on larger investments. These offerings might remind seasoned traders of other high yield investment programs that had come up and failed before plus token like Bitconnect.
Plus token turned out to be a classic ponzi scheme. Plus token was a ponzi scheme which managed to dwindle people out of almost 3 billion USD in cryptocurrencies. But how did it do this? Being a ponzi scheme what it was basically doing was maintaining an illusion of prosperity and a sustainable business by misleading investors into thinking that their funds were being used to develop new cryptocurrency based products and projects. Returns were paid out initially with the payouts coming out from new investments and new initial deposits that were coming in. And this is precisely what made it a ponzi scheme, people investing more after seeing a few initial payouts. The Company faked that it was building something while it was just redistributing funds that were coming in.
Another trait of this business that makes it fall in the ponzi scheme category was the high importance of referral programs. Investors were highly motivated to bring more investors. As there were huge bonuses and rewards based on your initial investment and the number of people that you got on board to Plus token. This led to people referring friends and family to invest huge amounts in cryptocurrency with Plus token. The company also managed to market a lot via WeChat. Plus token advertising messages were being forwarded to everybody in China and Korea by unsuspecting victims. Apart from this the company also had offline meetups that seemed to educate first time investors about Bitcoin and cryptocurrency based platforms.
Problems started coming up in early June 2019 when users started reporting delayed withdrawals. The company initially brushed off these reports attributing the problem to high miner fees and a possible hacking attempt. Payments had stopped since 30th June 2019 and soon a message on the website appeared saying “sorry we have run”.
In 2020 more than 100 accused members of the Plus token ponzi scheme have been apprehended and charged. The accused are still undergoing trial in court. But the lost funds have not yet been recovered. Matter of fact it is reported that some of Plus token’s operators are still at large and moving funds and dumping Bitcoin and Ethereum in lesser known exchanges and affecting the price of these crypto adversely. Given that the company was never regulated and didn’t share appropriate information about its project and how it was making money, investors should have been more careful. Hence we can safely conclude that Plus token was a scam and a ponzi scheme.