My experience with TRON Part 1: Be careful what you sign up for

My experience with TRON Part 1: Be careful what you sign up for

By darren242 | Cryptaysia | 11 Nov 2020


My story with TRON has its ups and downs. 

It all starts where I read an article from Publish0x about a platform in TRON where you can earn daily interests of 5%. Nope, 5% is not APY, it's DPY (Daily percentage yield). Of the many crypto projects I researched, never have I heard of the rates that high before (except if you know about bit*cough*net). Now of course, it is quite obvious that this is a ponzi scheme, but out of my curiosity that I want to experience what it feels like to be scammed in a cryptocurrency world, I put in $50 worth of TRX to try out many different platforms, thinking that maybe I can earn some small little allowances back. Turns out, I did earn something but in the end I lost a portion of my initial investments. I'll explain how.

1) TRONex

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If you're in the TRON ecosystem for a long time, you'll definitely heard of TRONex. If you don't, this is how it works. When you made a deposit, you'll earn a 1% daily base rate, then every single day that you hold your deposit without withdrawing, the percentage increased by 0.1% daily at the "Hold-bonus" section. On top of that, you'll get an additional percentage depending on the number of TRX tokens staked to this platform, under the "Contract bonus" section, where an additional 0.1% is added for every 1 million TRX staked on the platform. The deposit that you made is locked with their platform and you can never get it back.

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From the above picture, you can see that I've deposited 500 TRX into the platform and made my first withdrawal of 22.57 TRX. The "Hold-bonus" resets itself back to 0% after you withdraw. SPOILER ALERT: The withdrawal worked and my TRX rewards appeared in my TRONwallet, and I get an average of 4.5% return in a spam of just two days! 

So I dig deeper into the team behind the TRONex and how are they able to pay so much in such a short time.fe1c0c41fab66839cda0a7442344f283005ee4404f7ed6b3cb62eeb41a66cf71.png

This was uploaded in their website, where they claimed that Companies House has certified them as a private company. Companies House is under the gov.uk website, where you can find government services and information in the UK. If you click this, you can see TRONex listed in the Companies House website. However, if you search TRONex in the gov.uk's Companies House website, you won't find it there. Watch closely on the two links below:

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Notice the difference in the web links? Also at the top left corner, observe that the logos are also different, which indicated that this was a red flag, the first of many. #Scam alert no 1

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Let's continue. If you click into their info page, you can see the registered office address, the company type, when the company is incorporated and the nature of business. If you check the address on google map.....

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This is 10 Creek Road, London. CDT Group = TRONex LTD? Really? This link right here is CDT Group, which stands for City Digital Technology Group and it's a document solutions company. Where's the big, green sign of TRONex I wonder? #Scam Alert no 2.

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Now onto the "director" of TRONex. If you're an investor of stocks or cryptos, the first thing that we should do when we do our own research is to know the man/woman behind the company, check out his interviews and determine if you think he/she is the right person to run the company. Not surprisingly, you can't find this person anywhere including LinkedIn. The "next Satoshi Nakamoto" I see..... #Scam Alert no 3.

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What's surprising is the active users in the Telegram TRONex support. There's a lot of people spamming and asking questions every single day about how to earn interests, and the support actually replies them. 

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"Legit and honest" investment platform? Let's add #Scam Alert no 4 since it doesn't fully explained how are they legit based on the findings above. Also, most of the people in the Telegram are repeatedly praising how great the platform was, and how their investments are going to the moon and such. Suspecting that they might be bots.

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Here comes the most annoying part: Encouraging people to make YouTube reviews about their platform. They claim that you can earn up to 10,000 TRX for the grand prize (if I remembered correctly), for the lucky winners that published a review about their platform. The people who reviewed this platform will try to lure you into the platform will benefit from earning commissions using their referral codes in an MLM type of referral system. Here's the YouTube link, feel free to report them if you want.

TRONex is a platform that keeps on giving, without mentioning what are the staked TRX tokens are used for, and how are they sustainable. Day by day, I consistently withdrew my earnings successfully, waiting for the day when the website will be down and they'll take all our profits and run. Then the unexpected came.

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Due to the popularity of the platform, the contract bonus skyrocketed to a whooping 31.2% before I withdrew a nice number of 1000 TRX, and yes I got back 200% as advertised by TRONex. What they didn't tell you is that the maximum rewards you can earn is 200% of what you deposit, so if you deposited 500 TRX like me, the maximum rewards you can earn is 1000 TRX and no more than that. That's how they control themselves not to step over the line of being a Santa Claus.

I forgot to take the screenshots after that, but the summary story is that after 3 days of this, the daily profit skyrocketed to an all time high of 80% daily interest rate! Which means doubling your rewards in just a day or more! And then here comes the crash....

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Noticed the total invested showed 600 TRX. Yes, I did put in an additional 100 TRX, because why not? It's only an extra $2.50. I expected to get back $5 in less than 2 days, but sadly from the screenshot above, you can see the daily profit percentage drops back to the lowly 1% in a week, where the TRX staked slowly sapped out from the staking pool and then the withdraw button disappeared after a few days.

So what have we learnt? Yup definitely a scam, but at least you get what is advertised for, and I got back my investment with a 200% return too. I would say this platform has done a pretty good job in hiding their authenticity and the amateurs will fall for their tricks very easily. Now the platform is back with a version 2.0 of "TRONex World". Looks like the same tricks, but with different rules. If you wanna put some of your TRX to test it out like me, feel free to do so, but I've already warned you, deposit at your own risk.

*For a TL:DR version, TrustPilot reviews speak for itself. You can check the Part 2 of my article here.


darren242
darren242

I'm Darren, from Malaysia. A nerd who is into cars and everything including Cryptocurrency and DeFi.


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Cryptocurrency experiences from a Malaysian perspective

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