LuxuryCoin is a cryptocurrency used as part of a Ponzi-style lending scheme. Find out if it’s a complete scam or a legitimate opportunity today in our review.
What is LuxuryCoin?
LuxuryCoin, or LXC, is a decentralized cryptocurrency built on the Ethereum blockchain as an ERC20 token. There’s a total supply of 26 million LXC coins, with just 4 million coins available during the ICO that starts on December 24.
The token makes many of the same claims as other digital currencies: it can be transferred globally with ease, for example, and is actively developed by a decentralized international team.
What sets LuxuryCoin apart from other currencies, however, is its lending scheme. The coin is wrapped up in a “lending program” that pays guaranteed returns as high as 42% every 3 months, plus 0.33% interest per day.
Obviously, when someone promises to pay you guaranteed returns of 1% per day or higher on an “investment opportunity”, it’s an almost certain sign you’re being scammed. Cryptocurrency-based lending schemes have become an epidemic across the community.
Is LuxuryCoin yet another lending scheme designed to steal the money of investors? Or is this a legitimate investment opportunity you can use to make 500% returns per year and higher? Let’s take a closer look at how LuxuryCoin works.
How Does LuxuryCoin Work?
LuxuryCoin’s website is almost identical to other crypto-based lending scams we’ve seen online. In fact, large portions of the website and its logos appear to have been directly copied from other scammy websites.
As far as we can tell, LuxuryCoin has no products or services. The company just has its lending scheme, which doesn’t seem to actually lend money to people: it just seems to function like a Ponzi scheme, where the returns of older investors are paid by the deposits of new members until the scheme collapses.
To start “making money” with LuxuryCoin, you need to give the company a bunch of money in the form of ETH. In return, they’ll give you LXC coins, which appear to have no value and are not available outside the LuxuryCoin platform. Through this system, LuxuryCoin promises to pay you ridiculously high daily and monthly returns on your investment – although it’s not clear where these returns come from, or who would pay an APR of 1000% or more per year to borrow money.
In any case, here’s the step by step process listed on the official website:
Register an accout by visiting LuxuryCoin online at LuxuryCoin.network, then click signup and give the anonymous development team your personal information
Deposit Ethereum (ETH) into your account
You’ll receive LXC coins in return for your ETH; to start lending, convert the LXC to USD and start lending on the internal exchange
Start earning profits of 1% per day and higher
Make more money by referring other people to the platform; you get paid per referral; the platform has a 7 level referral scheme (a multi-level marketing scheme)
LuxuryCoin Investment Packages
LuxuryCoin’s “investment packages” start at a price of $100. Here’s how the four packages break down:
Package 1: $100 to $1,000
- 25 to 38% ROI guaranteed
- 0% returns per day
- Capital unlocked after 234 days
Package 2: $1,010 to $5,000
- 25 to 38% ROI guaranteed
- 0.11% returns per day
- Capital unlocked after 168 days
Package 3: $5,010 to $10,000
- 38 to 42% ROI guaranteed
- 0.22% returns per day
- Capital unlocked after 120 days
Package 4: $10,010 to $100,000
- 38 to 42% ROI
- 0.33% returns per day
- Capital unlocked after 90 days
Who’s Behind LuxuryCoin?
One of the easiest ways to spot a cryptocurrency scam online is when the company refuses to disclose any information about itself, its team, its location, or personal information. That’s the case with LuxuryCoin, which doesn’t list any member of its team or any information you could use to personally identify the people running the company. The website lists locations in Thailand, Singapore, South Korea, Brazil, Indonesia, and the Philippines.
The whitepaper, meanwhile, lists “Singapore November 28, 2018” on its front page, although it’s not totally clear what’s happening on that date.
In terms of a roadmap, the company claims to have conceived the idea for LuxuryCoin in August 2017. By March, the company will release a mobile wallet for iOS and Android. Throughout the rest of the year, the company will implement wallets for Mac and Linux, ATM installations, and credit cards, among other products.
The LuxuryCoin ICO
The LuxuryCoin ICO begins on December 24, 2017 at 10PM GMT+8 (Singapore time).
As mentioned above, only a small number of LXC tokens will be available during the ICO: 3,380,000 LXC tokens out of 26 million (13% of the total supply) will be available during the crowdsale.
The pre-sale is scheduled for December 23 to December 26, followed by a main ICO from December 30 to January 8, and a second ICO from January 11 to January 20. Tokens are priced at $0.75 per token during the pre-sale, rising to $1 and $1.1 per token during the first and second rounds of the ICO.
It’s unclear where the remaining 87% of tokens are being used – they could be used as part of the lending scheme (to deliver the absurdly high returns) or they could be retained by the development team for personal profit). Like many of LuxuryCoin’s features, there’s absolutely no transparency here.
LuxuryCoin is yet another cryptocurrency-based lending scam that promises to pay investors absurdly high returns with no work or risk whatsoever. The company will pay you returns of several hundred percent per year – guaranteed. All you need to do is send the anonymous, mysterious company a bunch of ETH to get started.
Based on the limited information the company has posted online so far, there’s no reason to believe this is a legitimate investment opportunity. You can decide if it’s a scam for yourself today by visiting LuxuryCoin.network.