CloudToken Wallet Scam or Legitimate?
CloudToken Wallet is the latest trend in Mobile Cryptocurrency Wallets that pays you for HODLING your cryptocurrencies. Cloud Token has an integrated Arbitrage Trading Bot that delivers up to 15% with the average being 10% monthly profit. If you listen to some bloggers and you will read about CloudToken Wallet Scam.
Facebook Member Screams CloudToken Wallet Scam
Randy Kelly wrote this about CloudToken Wallet:
- No solid team or tech innovation.
- An ERC20 token of no use case. They’re not even using it to power the app really.
- No real evidence of AI trading. You can’t really verify that *Jarvis AI trading actually happens with the cryptocurrencies you HODL.
- No access to private keys of CTO wallet
- CTO has had only 5 transactions with 1 address holding majority. You can view them here…
This is the address given on their website FAQ.
Most likely CTO is not being distributed, and real transactions are not taking place since transactions cost gas. Probably software is just showing balances that are not reflected on the blockchain.
- Constant crashes of website. No SSL Cert. An unsecure website is not a good sign.
- Minimum injection of $500 for passive income from the apparent trading and referrals upto 21 levels gives commission. The attraction is understandable for MLMers.
- Whitepaper names mentioned have no real credit in blockchain space.
- Promise of ROI. Anything that promises fixed ROI isn’t good. (Security token then?) Regulators, where are you?
More from Randy
Some of the guys mentioned in the whitepaper dont even have a photo on their Linkedin profile, never mind a decent track record of projects.
Ronald Ai (real name? Seems cool to have Ai as your surename when you work on Ai trading bots) is providing the tech, at this stage you are taking a big risk in my opinion. However, with the amount of money flowing in, if they want to really make a solid tech wallet that is linked to AI trading, and improve on the above, they can. It’s all about the intention. The WBF co-founder is hard to get hold of…couldn’t find him on Linkedin. Ronald Ai seems to say that he is only involved in the tech. Money is obviously being made … so maybe it will run for awhile and then evolve into what they promise to be, or disappear. Who knows…
My Research: CloudToken Wallet Scam
I want to preface this by saying I am a blockchain and cryptocurrency advocate and have built a few DApps myself using blockchain technology. So let us get started point by point.
Cloud Token Technology Team
Ronald Aai is actually one of the icobench experts as a blockchain architect. He also joined CryptFunder early last year as the tech lead/CTO. He is the founder/CTO of Bit Beta System where they developed what they claim to be a 4th generation blockchain. Last year he presented to a pretty impressive audience his opinion of SuperSwitches as it differs from Nodes in terms of transaction speeds. Ronald Aai is the Director of Information Technology at SQ2. He also founded YCF Technologies. He led the development of MerchantChain while serving as the Technology Director under the auspices of his SQ2 company. Ronald’s expertise tends to be in Distributed Ledger Technology (DLT – Blockchain), Internet of Things (IOT) , Mobile Apps/DApps, Payment Systems.
Their debit card can be scanned by the Cloud Token mobile wallet which will soon roll out as a component of the security implementation for login access. You can also use it like a regular debit card which will be integrated into the wallet similar to BitPay.
Again… Ronald Aai is indeed a real person. His name is not AI as in Artificial Intelligence as Kenny stated. That gave me a good laugh. As far as my research has shown, he has been using Ronald Aai as his name at least since 2011.
CloudToken Wallet has no Private Keys
When a company’s product is in pre-launch, one does not expect all features to be available. Nonetheless, 1 day after Randy posted this objection as one of the reasons for concluding that the CloudToken wallet scam was real, Cloud Token implemented BOTH the 2 factor authentication (2FA) and mnemonic phrases.
NOTE: Since CloudToken is a Hierarchical Deterministic (HD) wallet, it has a mnemonic key. Private keys for each address are generated from the mnemonic. So in a sense, they are better than a private key because you control private keys to all addresses that can be derived from that seed.
Cloud Token (CTO) is an ERC-20 token with no use case
Quite frankly, ETH didn’t have a use case when it was developed. Definitely BTC and LTC didn’t have any use cases. Monero’s use case is privacy. BNB (Binance) use case was for its customers to buy BNB for fee payments within its trading exchange ecosytem. It was unnecessary. Customers were paying fees with BTC, ETH, or whatever crypto they were buying/selling. EOS has no use case. XRP has a use case but it is simply an extension of the existing centralized financial institutions.
Would we conclude that ETH, BTC, LTC, EOS, and hundreds of other tokens and coins are scams simply because they don’t have a use case? I beg to differ. Also note that the US Securities and Exchange Commission has ruled that ETH is not a security even though it has no use case.
From my discussion with Ronald Aai, there will indeed be quite a few use cases for CloudToken’s membership base in the P2P exchange area, the cryptocurrency payments space and more.
CloudToken has no ‘verifiable’ Evidence of AI Bot Trading
When I first looked at CloudToken, I was inclined to agree with this. I went to etherscan and saw 1 billion tokens but no other real transactions conducted. I expected to see the evidence on the blockchain.
First I logged into the wallet and went to “Order History”. There were a lot of Arbitrage Trading transactions being displayed in real time, but I still needed my questions answered about what I found using etherscan.
So I sought out Ronald Aai, Chief Technical Architect and also got input from Simon who is the first to bring CloudToken to North America.
I’ll try not to be too technical.
When the CloudToken (CTO) ERC-20 smart contract was created, it was written on the Ethereum blockchain. One can issue ERC20 tokens via smart contracts on the Ethereum blockchain but they don’t have to be transacted on the Ethereum blockchain.
Nonetheless, here is proof of Arbitrage Trading using the Cloud Token AI Bot in Binance. They have multiple accounts trading at the same time.
Bit Beta System (BBS)
CTO transactions are processed through the Bit Beta System as a token on the BBS blockchain.
All CTO token transactions are conducted on the BBS 4.0 blockchain. The existing ERC-20 smart contract version on the Ethereum blockchain is simply a shadow copy of the INITIAL amount of CTO for the sake of contract creation on the ethereum public chain.
CloudToken doesn’t write the CTO transactions onto the Ethereum blockchain because it cost gas. Gas has to be paid with ETH. CloudToken doesn’t want to take this approach for 2 main reasons.
- The gas would get quite expensive
- CloudToken would have to hold a lot of ETH in their ethereum wallets to pay fees (GAS) rather than using the ETH to trade.
As long as they don’t send a message back to the token contract via the BBS network, no updates will be seen on the public chain.
This methodology is similar to Lightning Network and Raiden. Companies such as Electroneum use off-chain processing for Instant Payments.
The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the Ethereum blockchain and works with any ERC20 compatible token.
The basic idea of the Raiden Network is to avoid the blockchain consensus bottleneck. This is done by leveraging a network of payment channels which allow to securely transfer value off-chain, i.e without involving the blockchain for every transfer.
No more “Pay to Win” confirmations like Ethereum or Bitcoin! Blockchain miners will only process your transaction if they think it will pay them the most profits from mining fees. That is why some people have to wait 1 hour and others wait 2 minutes for their Bitcoin or Ether transactions to confirm. The miners dictate that process.
This doesn’t occur with BBS.
BBS is a state of the art 4th generation mobile-based blockchain designed by Ronald Aai of BitBeta System. It is super-fast. It is capable of processing transactions near-instantly thanks to a fair & fast Proof-of-Reputation algorithm that uses response time, influence (number of connections), stake (number of transactions), and randomness among peers to determine transaction witnesses. It does this strictly in the order of transactions.
No SSL on Website
Irrelevant but I’ll address it any way. Why would they need SSL on a site where no commerce is being conducted? It’s just a place to download the wallet. There are no financial transactions taking place on the website . Would you conclude that ESPN.com is a scam since they don’t have an SSL certificate?
EDITED: Ronald Aai posted the following. I found it rather humorous.
CloudToken has Affiliate Model or MLM model
Irrelevant but …
MLM is a provably viable business model and has been for ages. Some companies are great .. others suck. But it is viable and legitimate.
Affiliate programs have vastly expanded the customer base and membership of many MAJOR companies in a multitude of industries. See https://www.referralcandy.com/blog/47-referral-programs/
MLM is simply an affiliate program that pays down more than 1 level. It’s not illegal nor does it automatically implies that a scam is in the making.
I am aware of the anti-MLM brigade but it is not my calling to turn anyone into an MLM believer.
The CloudToken monthly ROI is Fixed
The ROI isn’t fixed. It is variable as it depends upon the profits generated from the CloudToken Jarvis AI Bot. The amount touted in social media by agressive marketers is the ceiling of what you could possibly earn.
The White Paper was Unimpressive and Fake
According to corporate, they never had a white paper. A white paper was created by an agressive promoter (tsk tsk tsk). My guess is he wanted to recruit someone who insisted upon a white paper.
I have already written ad nauseum above about the Technology Expertise of Ronald Aai who leads the tech team. Yes the guy who won “Innovative Blockchain Project of the Year” at the World Blockchain Forum event in Shenzhen
There have been rumours that Zhao Sheng can’t be found online. He is oftentimes found on someone’s stage. Zhao Sheng is the CEO and co-Founder of World Blockchain Forum (WBF). He also invested in PlusToken in 2018 just as he is an investor in CloudToken.
The World Blockchain Forum (WBF) Corporation was registered in New York, the USA, in 2017 and its first WBF event took place March 26th-27th, 2018, in London, United Kingdom.
CloudToken Wallet Scam is a mantra sang on a few blogs and in some social media posts. Still I have yet to find any evidence that CloudToken is a scam.
How To Get Started?
- Go to http://cloudtokenwallet.com or just copy the link and paste it in your browser to start the download. Firefox or Chrome browsers works best.
- Download the App to your mobile phone – use 1007375291 as the referral code
- Install and Launch the App
Download the CloudToken Getting Started Guide
and in a matter of minutes, you will be ready to rock n roll!
Tell your friends and give them your Cloud Token Referral code. When they sign up, download, and tranfer cryptocurrency to the CloudToken Mobile Cryptocurrency Wallet, you will earn even more!
Until next time…