The number of ICO’s that have sprung up in the past couple of months have been simply ridiculous. Due to the growth that the crypto industry is currently experiencing, it comes as no surprise that there are may scammers out there who are trying to make a quick buck.
Most of the obvious scams come in the form of “investment deals” that offer users with highly unrealistic returns, within a short span of time. HPToken seems to be following a similar trend and claims to help users make loads of money over a span of ‘5-10 years’.
HPToken is an all new “crypto service” which like many other scams, sells fake dreams of maximizing investor profits almost overnight. Straight of the bat we should mention that there are no details of any company executives that have been mentioned on the website.
This is a sureshot sign that the project is doing something that is not completely legal. However, the problems just don't end there, down below we have presented a list of issues that pretty much expose HPToken for what it really is:
(i) Sketchy Background Information:
As mentioned earlier, there are no details of any employees or team members that have been provided on the website.
The excuse given for this according to the whitepaper is “We know we are going to take a hit here for this, but we believe it is still viable for us and our investors to do so. We will not be making public our team, solely for the reason of both legal and Tax purposes.” If this does not reek of foul play, I don't know what does.
(ii) Poorly Designed Whitepaper:
One would assume that when launching an ICO, a company does its homework and tries to present an ‘Official Whitepaper’ which is not only concise, but also free of any errors. The HPToken whitepaper is full of grammatical errors and spelling mistakes.
The creator of this document has used slangs instead of proper vocabulary in many of the pages. Lastly, the line spacing is so poor that it starts to stand out quite prominently once we are 4-5 pages in.
(iii) Unsettling Points of Emphasis:
In order to relate to its customer base that this project is completely legitimate, the HPToken whitepaper keeps mentioning the fact that this project is not a scam or a quick moneygrab operation.
For example, there have been multiple mentions on page 5,8 and 9 about the ICO being completely legal and free of any issues. If someone has to keep telling you that they are not a scam, then something is definitely not right there.
(iv) Fake Identity Usage:
One of the biggest signs that make it completely obvious that this product is a scam, is their use of hired help to promote their official “introductory video”. The video starts of by introducing a person called David Guetta (can you believe that!!) as being the company’s CEO. This is quite weird because in their whitepaper they had clearly mentioned that they will not be revealing any details of any company members (then why the sudden change of heart?).
Anyway, the dodginess does not end here, as this person who claims to be the CEO of HPToken is in fact a professional freelancer called Ron Desi, whose services can be availed of through Fiverr.
He charges $5 for a 50 word introductory video, which is exactly what the folks over at HPToken have used. This blatant use of fake identity can actually be used to take the both Ron and the people behind this ICO to court.
Other Details to Keep in Mind
(i) Copied Website Structure:
Anyone who is even a bit aware about crypto services, will know that HPToken has pretty much used the same website structure as that of RegalCoin. They have used the same colour scheme, fonts, pictures, but have simply replaced the Regal Coin emblem with theirs.
(ii) Who.is Search:
Upon doing a quick background search of the domain name, we found that no “owner name” came up. In Fact, the website was created only a month back, indicating that this is a potential grab scam. Lastly, all specific data such as company name, address, details are hidden using a third party software (now how about that?).
(iii) Unrealistic Returns:
Even if you still think this project might still be worth it, it is useful to have a read through of the ROI’s being offered by the company. The figures a pretty laughable, and don't have the potential to be sustained for a long duration of time. For example, they claim to deliver a 0.2%+45% (monthly) interest returns on amounts as low as 100 dollars.
HPToken is a surefire scam that should be avoided at all costs. It is clearly using tactics such as “unrealistic returns promise”, “identity theft”, things that can actually put people behind bars.
On a closing note, we would suggest that users save their money, and look for an ICO that is trusted, and has been verified by members of different bitcoin forums and communities. There are even ICO verifying websites that can be found online that give us a realistic assessments as to which projects are safe to invest in, and which are not.