A look at the Stoxum website will show that there are a number of signs that show that investors that bought this token would definitely lose their money. The reason this happens is that many investors think that ICO is a path to easy money.
The reality of today’s situation is that most ICOs are paths to losses. This is already clear from the fact that 80 percent of ICOs have been shown to be scams.
The Stoxum ICO is a project that stated in their whitepaper that they are launching a hybrid exchange that marries decentralized exchange (DEX) and centralized exchange (CEX) concepts.
While there is nothing wrong with this concept, there are a number of reasons why no investor should put their money in this project.
Here are five reasons why you should never have bought the Stoxum token.
1) An ICO that didn’t show team members will definitely end up a scam
As we already have seen, most ICOs these days routinely end up as exit scams. What I mean by this is that these were projects that seemingly did the right things. Everything went on well for some time then they stopped communicating with investors after the initial coin offering.
These were people that investors even saw their social media profiles, which may be faked anyway. The reason is that prosecuting online crooks takes time and money and most investors do not even have time for that. Most people lick their wounds and move on after being scammed.
The Stoxum ICO did not even use the pictures of real people and went on to explain the reason by asking the question in a preemptive deceit:
“Why doesn’t the team reveal their names?
The main idea of the project is to create a product managed by society. In this case, the product itself belongs to the community, and not to certain individuals.”
Really, and we have investors giving them money? In other words, the project belongs to the community while the money belongs to the promoter.So how are you sure that a team that didn’t reveal their identities would work on the project for which you sent them money? Click To Tweet
2) 100 Percent Return On Investment for Buyers of Stoxum Token
What every investor in the Stoxum ICO may have failed to realize is the fact that businesses that launched initial coin offering are not operating from another world.A startup promising you a definite return on investment in a business that it is yet to build is just in a hurry to get your money. In fact, it is against SEC rules for any ICO make any promises of expected profit. Click To Tweet
There is no way a new business or even an existing one would pay a 100 percent ROI to all their investors in an ICO. Like in the world of business, there are no guarantees.
3) $6 Million As Minimum Cap for DEX and CEX Hybrid
Starting with their ambitious plan to raise $30 million maximum cap and $6 million minimum cap, I think the target of the team is to create impression among investors that this is a big project.
What exactly would they do with that sort of money in the project? Apparently, they are collecting the funds for another thing, not just to build a DEX/CEX, which practically doesn’t require that much money to build.
4) A Token that Appreciates Every 10 Minutes
Sometimes scams are rather too obvious, however it seems that even the obvious ones still manage to convince people to give them money.
There is no possibility that a token can be made to appreciate every 10 minutes organically, unless the promoters of this project would be the ones pumping the token.
If this is the case, they are indirectly stating that it is a pump and dump scheme, in which case it still makes no sense to be involved with them.
Now, let us assume that the extra $1 million or so collected from the crowdsale is used to artifitially pump the toke, (I doubt this will happen). The team will still pull the plug and leave the investors holding a worthless token after they pull out.
In any case, there is no chance that they will sustainable pump that token. So it is a hazard to buy.
5)Stoxum Couldn’t Reach its Soft Cap, So Why Keep The Funds?
Honest projects will refund tokens after ICO if the soft cap objective is not met. This has not been the case with Stoxum. If they needed a minimum of $6 million for the project but generated just $1.8 million according to data available on the site, this fund should have been returned to investors.
The Stoxum ICO is a definite scam. If it is not yet obvious to you then you’re meant to lose your money. Investors in ICOs are advised to investigate them before buying tokens.
You may donate here to help investigate more scam ICOs:
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