Once upon a time there was a scamcoin called Bitconnect. It was the first of a series of cryptocurrencies that claim huge returns, backed by nothing other than pretend-trading profits with zero proof or track record to audit. It was at a time when all crypto was booming and most of the new users did not bother to research much. They didn’t even know about the obvious red flags of Bitconnect. The coin was thriving in the network marketing space, with every Tom, Dick and Harry promoting it as the best passive income in crypto. Less than a year later, the scam was complete with the coin dropping to near-zero value and its founders or so-called “traders” had vanished without a trace.
That was back in 2017 and since then the scam projects have learned a trick or two and became more sophisticated. I’m mainly talking about the fact that if you want to fool people into giving you their hard-earned crypto, you have to show some level of transparency. Bitconnect was the last crypto project with fully anonymous team and no verifiable proof of generating the profits they promised.
These days everyone knows that cryptocurrencies are all about transparency and publicly verifiable records, so if you want to successfully run a scam project, you have to be prepared to have some online presence and show some form of activity related to what you claim to be doing. Which is what the new ponzis are doing these days.
Throughout 2018 we saw the rise and fall of Plus Token – a very obvious (in my view) scam project where members were buying fictional tokens that were supposedly bringing high returns generated from… trading (yes, not a very creative approach, but one that has been proven to work quite well with the inexperienced investor and the rogue mlm leaders) and even before that scam had unfolded, most of the victims and their respective “leaders” had already switched to another – very similar scam, called “Cloud Token” (the obvious name link shoould have been a giveaway, but I was shocked at how many people didn’t think it a red flag…)
I don’t really follow these scams too closely, but I see a lot of people falling for them, so I decided to add my five cents to the conversation and put it out there in the public domain to hopefully stop any more people falling victims.
By now it is clear to everyone that Cloud Token is a scam and I just wish that people would have listened when I was posting about it a year ago. All I got were messages from members who were insisting it’s the real deal.
I won’t go too deep into the details about Cloud Token since this is not a review of this ponzi, but to give you the main frame of the business – a phone app that operates its own token, which members are buying with the promise of receiving 6-12% monthly interest and that was also generated through trading activity. As far as transparency goes, Cloud Token had a very public and active developer called Ronald Aai – a guy who had zero presence in the crypto space prior to this project but suddenly became an expert in the field – an overnight success of sorts, and an equally unknown project manager – Daniel Csokas, from Singapore. Other directors and founders of the scheme were kept out of the public eye but it seems the always-present Ronald was enough for the marketers to start sending their faithful members to this scam project while filling up their pockets with the commissions they earned in the process.
I remember living in Bangkok at the time when Cloud Token was launched and seeing videos and pictures from the event thinking – this all seems like a complete and utter scam. It brought memories from an event I attended a year earlier at the same venue (a huge arena in the outskirts of Bangkok), of another failed mlm project called Ormeus – the same type of lavish opening ceremony, overly-generous dinner parties, shows and the inevitable hype that is built up to impress and entice every attendee and their fanbase.
If I didn’t know better, I would have felt like I missed out on a huge opportunity – a new big project… except, this time I was already armed with bitter experience from previous scams just like this one and I was able to spot the red flags from a mile. I should have made a review about it straight away and I was going to… I arranged to get an interview with their main guy – Ronald Aai, but that fell apart just days before I departed from Thailand as the Cloud Token team were busy recruiting faithful followers rather than deal with a non-believer like myself, so that didn’t happen and I never made a review of the company. I resorted to posting a few warnings about it on my social media, so those who follow me on Facebook and Twitter probably remember my posts where I called it the next big ponzi.
It only took Cloud Token a couple of months to run into legislative trouble with the Singaporean authorities, so the project relocated and then a few months later, it had even more trouble when Chinese authorities made about 70 arrests and drew a possible link with the scammers from Plus Token (which had already dissolved by that point).
In an article from late 2019, Bitcoin.com reported about this and warned people about Cloud Token being an obvious ponzi, but it was already a bit late. The members were reporting that their tokens aren’t paying, their money is locked and withdrawals aren’t happening… in other words, the scam had been unfolding already and there was no going back.
Earlier this year (2020) the second phase of the scam, called Cloud 2.0 was supposed to bring a ton of new developments to the Cloud Token ecosystem but it failed to deliver.
Typically, when there are such ambitious upgrades and changes or rebranding taking place, we could expect that the ponzi scheme is at its last feet and in this regard, I am not surprised at all to see that Cloud 2.0 did just that.
Since then Cloud Token has been underwater: no updates or communication for quite some time, their front-man Ronald Aai, who was brave enough to put his face out there recently came out of hiding and stated in a seemingly sombre video that there have been many hacking attacks on the system (cough cough) and other ongoing perils that the Cloud token team is dealing with. All the same old crap I’ve seen and heard from every shitty ponzi scam I’ve known in this online space in the past 6 years.. A bunch of BS and “it’s not our fault” kinda thing… nothing new.
Furthermore, the same people seem to be involved in a few other scam projects – EXXA and Torque Trading being two obvious examples.
You don’t have to look too far to notice the obvious connections and similarities between these schemes: same model (a non-tradable token that is available only within the network and pays a monthly interest that varies between 8-14%) and pretty much the same people: same team leaders are promoting all of these schemes, even the people sitting on top of these schemes are rotating – Torque Trading claims to be the leading project behind both EXXA and Cloud Token and since the other two have already suffered badly, the direction was to make Torque Trading seem like the official company that those two hired to provide services, but somehow these services are done better if you’re a member of Torque directly, because… who knows, somehow these other companies fucked up something and all that kinda nonsense.
In fact, Ronald Aai openly stated in an interview that they are using the services of Torque and that “…If you trust Torque, you should trust us” (direct quote). Well, I don’t know about you, but if my company was partnered with Plus Token, Cloud Token and Exxa, all of whom are exposed as ponzis, I would be very nervous about my business’ reputation. It’s common sense, really.
I won’t indulge you into the commissions plan of Torque Trading, there’s already plenty of other blogs and videos dedicated to that so I feel no need to go into such detail just to prove my point. By now I have enough knowledge of this industry to spot a scam from a mile and I will be the first person to admit I was wrong if it turns out that Torque is anything but a scam.
In my humble opinion, it will probably take another 6 months or so until we see the demise of Torque, but once we do, it will be fast. The first signs will be changes in the system or a new product being introduced. Possibly a major upgrade, which will be hyped as a huge deal. This is a very standard approach to begin the exit scam process. Also, don’t forget to monitor the team leaders. As soon as you see them joining new schemes, you know the end of the scheme is near. One of the people in my Facebook network is in fact a prominent leader in this scam and he’s usually (unknowingly) my most obvious indicator. The guy is such a commission junkie that he simply cannot stop joining these ponzis, even though he’s already fully aware that these are all illegal businesses. He simply loves money more than ethics. As soon as he starts promoting something new, I know his previous “business” is about to go under.
I hate to be the guy to say: “I told you so”, but mark my words (and this post) and let’s count the weeks (or months) until the end of Torque and see how this fiasco will unravel.
In the meantime, focus on learning trading for yourself and start making money without depending on any such schemes. That’s what I do and it’s the best thing for me.
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