Scams in cryptospace are nothing unusual nowadays. Wether they are fake giveaways on youtube, trading accounts on instagram or classical ponzi and pyramid schemes, they always manage to rip of investors.
In this post we are going to discuss EXW, most likely a scam which is gaining a lot of attention in the past few weeks and months.
NOTE: For legal reasons I'm not allowed to declare EXW as a scam since their product works (for know), therefore I'm only giving my opinion why I think that EXW is most likely a ponzi scheme in order to protect readers from this scam.
What is EXW
Just like other scams like Bitconnect, OneCoin, PlusToken etc. EXW is an exchange where you can "invest" in cryptocurrencies and you get a daily bonus of 0.32%. Just reading the word "daily bonus" sounds already fishy. But compared to other ponzi schemes, they offer loaning out cars and investing in real estate, which seems impressing people who are going to be most likely scammed.
Why is EXW an Scam?
What are the red flags which make EXW seems so shady?
Every investor should know that NO ONE CAN PROMISE YOU PROFITS. As I mentioned in the paragraph above, EXW PROMISES a daily profit of 0.32% percent on your initial investment. Basically, this means you would make 221% each year without any risk According to the website, they make profits by exchange fees when buying/selling on their exchange and they do arbitrage trading WITH THE CUSTOMERS MONEY!!! Not only doesn't arbitrage trading work in most cases, exchanges should protect the customers money and not gamble with it. In order to pay out each investor 0.32% every day, the trading must be profitable at the end of day and what's the likelihood that a trader is always profitable?
Pirmin Troger and Manual Batista are the founders of the socalled "Socratescoin". Never heard of the coin? It's because it does not exist. After the ICO phase (where both of them raised about 47 million dollars) they removed the website of the project and both of them dissapeared for one year.
Furthermore, cryptoticker.io, a website which publishes crypto news criticized EXW in one of their articles. After the article was published, EXW made an illegal DDoS Attack on the website. The cryptoticker website was offline for 1 month because of the ongoing DDoS attack.
Not allowing criticism
The DDoS attack showed that the founders don't allow any criticism in order to protect their image. Furthermore, an example would be "Markus Miller", an journalist who warned people about EXW in a YouTube video. Guess what happened after Mr. Millers statement? The YouTube video was taken down, he was sued by EXW and they called him an "dubious journalist". This shows the lack of professionalism of the founders. I also forgot to mention that they block users on social media who talk bad about them or they disable the comment section on YouTube.
EXW Coin and the EXW Whitepaper
Compared to other tokens, which get at least listed on low liquidity exchanges, the official EXW coin can only be purchased on their website. My conclusion is that the EXW token does not exist and therefore no exchange can list them. If we look at the whitepaper of EXW: exw whitepaper there are no information about the technical side of EXW token. How is the consensus created, how does their security model work, which DLT do they use?
FMA Austria and transparency
The austrian authority "Finanzmarktaufsicht Österreich" which amongst other things is responsible of protecting investors from dubious companies made a statement that investors should be careful when wanting investing in EXW. According to the FMA the reporting obligation for the emissions calendar has not been met by EXW for the year 2019. They also don't be transparent about their arbitrage trading. There are no evidence that the arbitrage trading actually takes place.
How come that EXW is still active if it is a scam?
Just like all other ponzi schemes, they depend on new users. Therefore EXW and others offer also a rank system. Summarized, the rank system means that the more users you get on board the higher your bonuses are. After the company runs out of new money (return on investment is lower that the daily bonuses they need to pay out) they will probably make an exit scam just like example PlusToken did.
How to protect myself of scams
Don't listen to others! Always do your own research before investing blindly. Most people get scammed become they listen and trust others. If you want to be a profitable investor you have to do your own research.
How should I make my own research? Here are some good starting points when you research:
- Is the Project being transparent about their product?
- Are they allowing criticism and respond to criticism?
- Check the background of the founders of the company.
- Check their whitepaper. Does the content of the whitepaper even make sense?
- Daily bonuses, Rank Systems and other "get rich easy" schemes are also good indicators that it's a scam.
Be careful if you plan investing in EXW. As long as they make shady decisions, I would not even invest one single penny in this project. Why just don't invest in solid transparent projects instead of letting others gamble with your money?
If you find this helpful, feel free to tip me. :) More important is to share this to others who plan investing in fishy projects!