Cloud Token which collapsed back in October 2019 has drafted new contracts that might see its investors lose more money as opposed to being reimbursed. The project turned out to be another ‘Ponzi’ within the crypto industry following payout defaults last year as stipulated in their agreement with investors.
According to the new contract, investors can exit the project and cash out at will; the catch however is they will only get back their initial investment. This contract further outlines that CTO returns based on re-invested funds will not be part of the settlement to investors. It is also notable that CTO conversions made through the Backoffice face a similar fate as per the new contract.
The woes of this MLM token-oriented project began back in Q4 last year when Cloud Token ran out of investment options to sustain its ‘Ponzi’ model. As it stands, the firm cannot reconcile existing CTO’s and payout the dollar interest as most only exist in thin air. News reports within crypto have it that Cloud Token exhausted the real funding proceeds way back during the purchase of premier CTO bundles.
Furthermore, Cloud Token’s Admin, Ronald Ai, went into hiding as early as December, 2019. He has also vanished from social media platforms leaving stakeholders to speculate that Cloud Token is indeed another crypto MLM scam.
The investors who opt to sign this new contract with Cloud Tokens will have their funds locked for another half year before the obligations are honored. However, given the history of scamming and disappearance acts in crypto, this might only be temporary music to the ears of investors.