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Possible ICO Scam Alert – WCX Exchange

Global Digital Currency Exchange Seems Shady

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The WCX ICO team describe their product as a “Global Digital Currency Exchange” and claim to have a working product and 794,743 signups. As far as the team at Crypto Briefing can tell, it has a lot in common with ICO scam offerings that are polluting the marketplace.

Let’s examine the evidence:

WCX Exchange Working Product?

 

Possible WXC ICO Scam - Tweet from October 10 2017

 

A tweet from their official account on October 10th 2017 states that the product is now live. However, the product we see is merely an API call from TradingView which documents no trades, no book, and no fills. Moreover, when we attempted to sign up for the service, we were told that all spots had currently been filled. This could mean it’s a Beta, but why announce a live product on Twitter in that case?

 

Possible WCX ICO Scam spots all filled

 

Their working product, in other words, appears to be nothing but a live view that anyone with any experience pulling an API could put together.

Their whitepaper (just a webpage, in fact) offers a statistic that seems bizarre in the extreme (and for which we have no evidence).

 

WCX Exchange Signups

Extremely Suspicious Traffic

The traffic to the site originates primarily from Russia, Ukraine, and Vietnam, according to SimilarWeb.

 

Possible WXC ICO Scam Traffic stats

 

This is important – other ICO sites have very different traffic sources, which are similar to each other but not to the possible WCX ICO scam: the following four images are for traffic to CHAINLINK, KYBER, WANCHAIN, AND REQUEST.NETWORK. (Desktop order: top-left, bottom-left, top-right, bottom-right. Mobile in order listed.)

ICO Scam - WCX Exchange compared to Chainlink
ICO Scam - WCX Exchange compared to Kyber
ICO Scam - WCX Exchange compared to Wanchain
ICO Scam - WCX Exchange compared to Request Network

Social Media

While their roadmap looks clean and simple on a shared Trello board, the software engineer ‘John Reyes’ can’t be traced. There are three we can find, none of whom appears to be working for WCX or any exchange platform. Our experiences of such roadmaps tend to be that they are NEVER as clean and well-defined as this, which, although not damning by itself, certainly raises more red flags.

Their Facebook page is virtually bare, but appears to make reference to some kind of bounty payment for posts on Bitcoin Talk. The only reference we can find on GitHub is completely empty. On Bitcoin Talk, they solicited translations and the results are here. This seems legit, but they also offered bounties. Indeed, on Reddit the only substantial thing we can find are bounty offerings. The Twitter account is extremely thin, and offers no insight into the company behind the offering.

Meanwhile, a Scam Advisor website contains numerous comments containing bounty links.

Whitepaper – Or Not

The whitepaper is non-existent, at least in terms of any real content. The link takes you to a page with a few fancy graphics, and promises of shared revenue, on one million transactions per second (which they note to be twenty times faster than other digital currency exchanges). There is NO technical data to support this assertion.

Funds raised will be used for “customer acquisition, research and development, and hiring the best and brightest in software development, security, marketing, compliance, and customer support.” That’s not a plan, that’s a High School lemonade stand proposal.

And wait for it, the big one – 20% of all WCX revenue will be automatically paid out to token holders, which means that “Holding WCXT is hence equivalent to holding a passive income portfolio of diverse digital currencies.”

The team behind this is completely anonymous – but we are assured that they are from “Silicon Valley and Wall St”. That’s our only insight beyond the name ‘John Reyes’ on the Trello board.

We did find a post on Bitcoin Talk that suggested that Fran Strajnar of Bravenewcoin.com is the lead escrow managed of the company; his LinkedIn profile does not mention it. A tweet to Mr. Strajnar requesting confirmation of his involvement had not been returned at the time of going to press.

Read into this what you will, regarding their marketing: “On an international scale, we’ll drive our message through a grassroots campaign spearheaded by local community managers.” That, once again, is all she wrote.

As for the complexity of their offering, this should offer some insight:

 

Possible WCX ICO Scam lifecycle from whitepaper

 

“WCXT is an ERC20 token issued on the Ethereum blockchain.”

This claim is in their whitepaper, and it is false. There is no such token or contract at Etherscan.io and therefore there is nothing for the public, or anyone else, to audit, nor could we locate one for WCX.

Our Verdict – Possible ICO Scam

The principals of this business appear to have gone to extraordinary lengths to preserve anonymity, and to circumvent the usual protocols for creating a legitimate ICO. Unless we put this down to extreme oversight (and hence, incompetence) or caution (for what reason?) then we have to conclude that it is deliberate. Our experience of deliberate anonymity in these situations has been that it is designed to shield the business from consequences. 

 

As always, do your own research and remember – this is our opinion based on extensive research. We will be happy to update this post if WCX is able to show us that they are a legitimate company.

It should be noted that we searched the Hong Kong and Luxembourg companies database for ‘WCX’ and found one defunct company that was dissolved in 2013; nothing appeared for ‘WCXT’. (The company name is conspicuously absent from their website, or anything else we can find, but they announced they were in business in these two principalities on a Bitcoin Talk post.)

In the meantime, and in the absence of such proof, we recommend proceeding with extreme caution until and unless WCX is able to demonstrate that they have a product, a team, and a real business. NEVER send your money to anyone you don’t trust, especially a possible ICO scam.

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