VCXCoin, or VCX, describes itself as “a potential ecosystem for visionary investors.” Find out what that means today in our review.
What is VCXCoin?
VCXCoin is a cryptocurrency project designed with real-world use in mind. Instead of just connecting to one cryptocurrency and blockchain, VCXCoin lets you connect to a wide range of blockchain assets at a maximum degree of convenience, all while adhering to “the highest security standards in the ecosystem.”
To accomplish this goal, VCXCoin uses the COMIT network, including the COMIT routing Protocol and the Cross-chain Payment Channels. These work together in a completely trustless, instantaneous, and low-cost way.
If VCXCoin seems vague and confusing to you so far, then you’re not alone. The company’s whitepaper is a mess of information. Half the whitepaper explains the terms and conditions of the project, while the other half vaguely describes how VCXCoin plans to accomplish those goals. The website also seems to be a carbon copy of other ICOs we’ve seen online in recent weeks.
Other signs that VCXCoin is a scam include the total lack of team information, the promises of big ROIs for investors, and the lack of any concrete information about how any of it works.
Is VCXCoin a total scam? Or is this a legitimate investment opportunity? Let’s take a closer look at how VCXCoin works.
How Does VCXCoin Work?
The VCXCoin whitepaper doesn’t do a great job of explaining how the ecosystem works. The whitepaper vaguely mentions cross-blockchain compatibility through the COMIT network. Instead of explaining how it works, however, they just link you to the COMIT whitepaper.
The VCXCoin whitepaper does a slightly better job of explaining the VCX Wallet. The team describes the wallet as “the major game changer” because it “enables users to spend their blockchain assets through their smartphone.” That’s not exactly a game changer – that’s literally the basic function of any mobile wallet.
You download the VCXCoin wallet, then enter the phone number and email address to setup your account.
Right now, the VCX Wallet has no connection to the COMIT network. Instead, all private keys are stored using “an industry-standard hot & cold storage solution.” VCXCoin plans to link their wallet to the COMIT network by Q3 2018, at which point users will be able to store their own private keys.
VCXCoin’s whitepaper also mentions some type of multilevel marketing structure. They claim that they’ll use a network and affiliate marketing system to expand worldwide.
Who’s Behind VCXCoin?
VCXCoin describes its team as “a talented team of developers, designers, lawyers, marketing experts, cryptography and security experts, as well as bankers and accountants.”
That team is currently working to establish “global credit card partnerships.” They also claim that they “have tried to have consultation with experienced investors such as Vitalik Buterin” – although those efforts appear to have been unsuccessful. I’ve never seen a company advertise the fact that they’ve “tried to have” consultations with someone.
Like many online scams, the company refuses to disclose any team information. There’s not a single name associated with the project listed on the whitepaper, and we have no information about who’s behind the project. The company’s social media profiles list the United States as a location. However, based on the English used in the whitepaper, it seems unlikely that the core team consists of native English speakers.
The VCXCoin ICO
VCXCoin will hold an ICO for its VCX tokens. There’s a total of 5,500,000 VCX tokens available during the token sale. The ICO is scheduled for December 5, 2017 to January 5, 2018.
Accepted currencies include ETH and BTC, with a minimum purchase amount of 50 VCX tokens per purchase.
The token rate varies throughout the ICO. Here’s how the price works:
- First 1.1 Million VCX: 1 VCX = $0.85
- Next 1.1 Million: $0.90
- Next 1.1 Million: $0.95
- Next 1.1 Million: $1.00
- Next 1.1 Million: $1.05
No new VCX tokens will be created after the ICO. There’s a total supply of 8.5 million VCX tokens, with 5.5 million available during the token sale and 3 million reserved “for long-term alignment of interests” – whatever that means.
At best, VCXCoin is a well-meaning project with bad marketing. At worst, it’s a complete ICO scam designed to steal the money of investors with vague promises and hazy goals.
The company – which appears to be linked to a previous project called Visacoin – claims to be creating a cross-chain compatible wallet using the COMIT protocol. However, the wallet has not yet been released, and the COMIT protocol won’t be integrated into the wallet until late 2018. It’s unclear what other products or services are being offered by the company, or why they’re seeking to raise so much money during their ICO.
The fact that VCXCoin vaguely mentions a network marketing system, a lending system, and big returns for investors also suggests that this is less of a legitimate company and more of a scam (the company mentions that you can make returns of 80 times or higher, for example, by investing in their platform).
There’s also a total lack of team information on the page – which all but confirms that VCXCoin is a scam. Unless you feel like throwing money at every ICO you see online, you should wait for more information about VCXCoin to emerge before you get started.