[Investors Beware] Fake Cloud Token Promotional Article Floating Around Full of Falsity and Fraud
- Cloud with Me launched ICO for Cloud Token to fund new cloud computing platform.
- Multiple sources suggest that these efforts are a scam, and the website is defunct.
The use of cloud technology is hardly a new concept. There are millions of businesses around the world that use the technology as a way of accessing information through any connected device, and there are even companies that setup ledgers with the use of the cloud to simultaneously share details with employees who work from home or at multiple locations. However, as useful as the tech is, there is a substantial risk in allowing a cloud service to hold all of this potentially sensitive information in a third party, especially considering the substantial hackers around.
Still, it appears that Cloudwith.me is aggressively looking for a way to decentralize the cloud technology, using their Cloud Token. The company launched this crypto asset on September 21st, 2017, hoping that their efforts to decentralize will be enough to entice users to push up the prices.
The whitepaper for this token says that the cloud computing technology is dominated by a few players, keeping new players from entering the space. The creators are undeterred, planning an initial coin offering (ICO) on August 25th. The annoucement of the Cloud Token on FXEmpire features a graphic that appears to show Vitalik Buterin, the creator of Ethereum, retweeting a post from August 10th. However, this is not necessarily an endorsement as much as it was simply announcing another project on their own blockchain.
The article continues, breaking down that the interest that will generate their liquidity comes down to four reasons –
- Decentralized cloud services
- Earning potential
- Immediate liquidity
- Purchasing tokens with credit cards
Let’s break down a few of those reasons. The biggest seller is that the company offers decentralized cloud services, trying to avoid the oligarchy that they described in their whitepaper. However, entering their website today, signing up immediately links users with one of the big names in cloud computing services, including Google’s Cloud and Microsoft’s Azure.
Earning potential in any of these crypto-related matters is always a little touchy, because absolutely no platform can authentically guarantee any type of returns. The article with FXEmpire explains that the users’ devices – laptops, phones, etc. – will contributed “spare processing power to a communal decentralized cloud” via GridNode. The services will be monetized, using Cloud Tokens. Donations earn the contributors “continuous income.”
Purchasing the token is next to impossible, with or without a credit card. Signing up, there is no way to enter information to make a purchase. There are no rates on the website, and no further details are really given to users. In fact, there is no way to get any further on this website without accessing the page.
It is also worth mentioning that this service is not widespread at all. On the sign-up page, consumers can only sign up in the following areas:
- Iowa (United States)
- Oregon (United States)
- Northern Virginia (United States)
- South Carolina (United States)
Even though the jurisdiction is still evolving in the United States, the fact that only three states and a specific region of another permit it is worrisome. There are also multiple social media posts that discuss this “opportunity” as a scam.
When the article was written, the initial price of a single Cloud token was $10. While CoinMarketCap has nearly every crypto asset in existence, there is no listing of the token.