- Consumers have been having difficulties withdrawing from the platform for the last month.
- Withdrawals will allegedly be performed through a third-party processor after Cloud 2.0 is active.
For every legitimate opportunity in the cryptocurrency industry, there are almost the same number of scams, and one of the most common tricks is the exit scam. An exit scam is a plan that allows a “company” to gain as much funding from unsuspecting investors. Then, almost as soon as they are developed, they leave with all of the funding they’ve gained. It seems that Cloud Token is working on exactly this type of plan, according to reports from Behind MLM.
The details on this scam haven’t quite been released, but it appears that this scam is less about using trading revenue and more about the Cloud SIM service available to Cloud Token recruiters. This service, as Behind MLM describes it, isn’t even worth getting involved in, considering that the goal seems to be the need to get people interested as part of the downline.
Ronald Aai hosts a webinar that is directed at the top Cloud Token recruiters, which states that there will soon be a Cloud 2.0 upgrade. With the upgrade, the withdrawals will no longer be available on the website. He stated, “When we actually move on to this… you can’t do conversions within the wallet itself.”
Instead, Aai states that a third party named Ribbons will be processing the withdrawals. However, Ribbons doesn’t actually exist at this point, though it looks to be a shell company that has been set up by Cloud Token. Upon researching further, the writers at Behind MLM couldn't find any mention of the company that isn’t directly correlated with Cloud Token marketing.
Explaining the difference, Aai stated,
“When you actually click on ‘convert,’ it sends you out to the OTC (Ribbons), whereby you will be putting up an order for sale. And the other members when they click on the pop-up button for their Cloud SIMs, they will go to OTC to check where they can buy from.”
Instead of using the funds that were already invested in the brand as a way to pay for returns like Cloud Token did, Cloud 2.0 will only fund withdrawal requests with new investor funding. Furthermore, the value of the affiliates will no longer have anything to do with the internal CTO value and will instead depend on what has been traded on Ribbons. That being said, it is pretty clear that the program is an exit scam.
Ultimately, the investors of Cloud Token were convinced by the idea that they could invest in CTO, which Cloud Token indicated would increase the value of. While the withdrawals may be available for now, it is clear that the last month of withdrawal problems could prevent consumers from doing that. Even though any other platform would have investors speaking up, the cryptic statements from Aai are clearly enough to keep questions to a minimum.