CoinAppetite

Plus Token: The “Super” Mobile Online Wallet that is the Latest Scam

From a cursory glance, Plus Token easily passes off as a safe mobile wallet that allows both iOS and Android users to stash their cryptocurrency loot safely. In fact, the homepage touts it as a “new global revolution” that is set to help change how mankind uses cryptocurrencies.

However, this assertion is not true, and the glowing review and the hype about will only last a short time.

Before delving into the dark and ugly of what is clearly a Ponzi scheme, here is a look at what Plus Token Wallet is.

Plus Token and Its Architecture

The official site of Plus Token site is available in Korean only. However, there are many landing pages advertising Plus Token. One of them describes the platform as a peer of wallets such as blockchain.info or coinpayments.net with the only difference being that Plus Token wallet gives users a chance to earn interests that range between 6 and 18% monthly based on an artificial intelligence arbitrage system.

According to the site, the profits accumulate from mining income, earnings from the exchange and benefits from referral that the site shares with its users. The site further describes itself as a multi-currency platform that allows users to store among other coins, Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, XRP and Dash.

The platform even touts its 10-layer crypto security feature, which remains unverified. Aside from the security feature, Plus Token site mentions among other things, a trading fee of 0.2%, payment processing fee of a similar figure, blockchain games that you can buy using Plus Coin, the on-platform token, and a mining machine as some of its admirable qualities.

In addition, it offers its users an STO exchange that pays out 50% of its earnings to affiliates, a tiered affiliate program, and income from lending cryptocurrencies. According to the Plus Token site, these are the reason why the platform’s token Plus Coin keeps appreciating.

The Architecture Dissected

The real reason for the coin’s appreciation, however, is that the premise of the platform is founded on a Ponzi scheme. As it keeps attracting users by the lure of the high yet unsustainable profits, the coin’s value will keep appreciating until there are no more users to invite.

Any program whose value appreciates only by the virtue of the increasing number of users that existing platform users attract is not sustainable. This is so because existing users can only attract so much. Once the number of new registrants stagnate, a huge chunk of users will remain short-changed since they cannot recoup their investment. This glaring inadequacy of Plus Token, is also its biggest undoing. It is only a matter of time until the price of the coin starts slumping.

Plus Token Claims

The platform brags about its prioritization of security and convenience for its global user base. In this regard, it promises:

  • Exclusive private key for every user
  • Cutting-edge and secure decoding techniques for multi-signature safety passwords
  • Wholly responsible security team

In these promises, however, lies the site’s biggest folly. If customers have exclusive private keys yet the site claims to make a portion of its ROI conducting arbitrage trading with the users’ funds, then how does it access the said funds?   

What Characteristics Make Plus Token a Scam?

The platform looks great and even the promises it touts to its users and prospects sound exemplary. However, this is only on paper. A scrutiny of its features reveals as follows:

  • The purported return on investment (ROI) that the platform promises its users emanates purely from recruitment. In this regard, it has all the hallmarks of a Ponzi scheme.
  • The site claims that the platform generates a chunk of its profits from arbitrage trading but so far there is no proof of this. Users, as such, cannot rely on this aspect or factor it into the expected ROI.
  • The claim that customers have exclusive private keys meaning only these users can access their funds does not make sense. This is especially so because Plus Token asserts that it conducts arbitrage trading using its users’ funds to generate an ROI. How is that possible when the users have exclusive access to their funds?
  • Their model of operation where users have to buy the coin is a keenly crafted strategy made to help inflate the value of Plus Coin. (At the time of doing this review, it was exchanging at $391. This value, however, is artificial.
  • Though the platform is paying, this is just a strategy aimed at making the platform and the coin attractive so that users can recruit even more users. What will happen after the market is saturated is easy to guess; an imminent collapse.
  • It adopts a multi-level marketing (MLM) strategy, yet it has its own coin! This is not only unusual; there exists no convergence between the two features.
  • A decent platform is proud of its developers; who in most instances are industry luminaries or practitioners with several years of collective experience. It even lists them. The Plus Token scenario, however, is very different. The core developers are not mentioned on the website, and the information on the CEO is scanty at best.

Our Verdict

Plus Tokens is the closest any racket gets to a Ponzi scheme. It looks rosy now because the recruitment numbers are high and FOMO is especially popular in the crypto industry. However, it will not be long before it all comes down crumbling. Besides, who is even behind the Plus Token idea? If you can’t seem to get answers to these questions, run, fast!


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Daniel Ayuko