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WCX Exchange Scam Alert

WCX Global Digital Currency Exchange Is A Straight-Up Scam

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WCX Exchange is an ICO scam. Don’t buy tokens. Don’t participate in their fraudulent ICO.

At Crypto Briefing, we don’t offer financial advice. But this isn’t financial advice. This is blatant and serious fraud, and we take our obligation to advocate for safety in cryptocurrency very seriously.


Back in October 2017 we identified this as a possible fraud, but the people behind it appear to have been gathering email addresses, and now they say their ICO is imminent.

The communication in their channels is often well-written, professional… and full of lies.

If you are one of the thousands of followers they have been grooming, all we can say is get out of the burning building, drag your friends out if you can. Thousands of people will not see this post… please do your best to minimize that number by sharing this with anyone who you think might have an inclination to send money to these ICO scam artists.

The WCX ICO team describe their product as a “Global Digital Currency Exchange” and claim to have a working product and 1.6 million signups.

The ‘WCX Coin’ website is utter gibberish, a half-finished product on which all the links don’t go anywhere. If you must, it’s at wcxcoin.com – we’re not doing them the courtesy of a link.

Let’s examine some more 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?

And you just have to love this.

 

 

 

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 and – what is that, a GIF?

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 Dramatically Strong Demand

 

A Little Elementary Math

Signing up gets you 50 tokens. There are 200,000,000 WCXT tokens, yet if all signups got 50 tokens – well, according to their claim above, that’s 80,000,000 tokens.

In other words, 40% of the tokens are claimed in signup process – which appears to have been overlooked in their ‘token metrics’, where they claim that only 5% of tokens are reserved for pre-ICO marketing and bounties.

 

Traffic Makes No Sense

As an ICO approaches, excitement builds. Unless you’re a scam.

 

 

A Tony Tran, who was a occasional writer for Steemit and according to his LinkedIn profile, also edited a Singapore Computing magazine, wrote an article about WCX last year. This seems to be his final post -we couldn’t find any other articles he wrote after this date, and it seems to be the first time WCX Exchange was mentioned. He has not responded to a request to comment.

WCX initially told users on the 17/7/17, it would launch on the 10/10/17: this was subsequently delayed to 17/2/18 and then again to the present 13/5/18. Why?

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.

The Trello board in question hasn’t been updated in months, and the items placed there to look authentic are nonsensical. “Apps for iOS and Android” was added October 6th 2017. Nothing since. No further direction necessary, apparently.

Their Facebook page is virtually bare, but appears to make reference to some kind of bounty payment for posts on Bitcoin Talk. They list themselves as a non-profit.

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.

A LinkedIn page offers no further insight: two team members are listed, both with cartoon faces. One claims to be ‘Anthony Burns’ and lists software engineering at Apple as a previous position. The second, Tomás Vega, claims a similar background and indicates that he was the engineering lead for Siri. Interestingly, someone with the same name who actually DID work on Siri is also on LinkedIn. This Tomás Vega, however, who co-owns a Siri patent, is at the MIT Media Lab.

The company claims to be based in Hong Kong on their site; the LinkedIn page says London.

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.

Much of the more obvious bullshit has been removed from their whitepaper / website since October, but a good deal remains – and we have these gems to remember them by:

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 was never returned.

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.”

Back in October, this was false, and we made that clear.

Now, however, there is actually a token:

There are a grand total of 12 token holders. The majority token holder created 200,000,000 of them 171 days ago (November 21st 2017) and 20,000,000 were immediately transferred out. The transfers were then sent to new addresses: 10,000,000 on the same day, and then 10 x 500 tokens each on November 24th.

There is no smart contract available at the WCXT token address.

Our Verdict – 100% 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.
The justification for this anonymity, posted in a Medium post on November 6th, is laughable:

“Our team combines Silicon Valley and Wall Street veterans. Security is our top priority for WCX and director identities will be revealed in time. Our directors are custodians of customer funds and it’s important to disclose their identities to the public responsibly without putting client funds or their personal safety at risk.” 

 

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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