With a promise to pay out 35 percent ROI each month, Gold Reward is a pyramid scheme that uses cryptocurrency.
Like many other pyramid schemes out there today, Gold Reward has its users invest bitcoins, in order to swindle them out of their money. If you do not know what you are looking for, the company actually seems very well put together and reputable. Gold Rewards not only launched their initial coin offering, but also have a professional looking webpage and an Ethereum based cryptocurrency.
Sadly, once you dig a little more, you will see that Gold Reward has the same set up as RegalCoin and BitConnect, two very well-known pyramid scheme scams that have been brought to light in recent months.
Gold Reward launched their initial coin offering in the middle of October and stated that they will release their platform once their initial coin offering ends. If you look closely, you will see that they have no services or products out there for people to purchase and they have yet to show there are even any products or services in the works.
When you consider that both RegalCoin and BitConnect were proven to be scams, yet they did pay out huge amounts of money before they collapsed. The people who earned a true profit were those who purchased tokens or coins through their initial coin offering, but sold them off before the platforms were shattered.
What is interesting, is while Gold Reward does seem similar to be before mentioned schemes, they are also different in their own ways.
Who Is Behind GoldReward?
When you look for information regarding who is behind Gold Reward, you will see that a company called Gold Reward Network, INC created them, but that is it. You cannot find any other information anywhere about the company. When searching the webpage, there are no team members mentioned anywhere in regards to the project and there is no physical location.
The only contact information is a generic email address linked to the site.
As you probably know, you should never send payment to an anonymous person. If they are not willing to tell you who they are or who is on their team odds are, it is a fraud.
What Makes GoldReward Different?
Gold Reward seems to like to make a lot of claims, however, many of their claims cannot be backed up with proof. In February, they claim to have made the smart contract for their token. In March, they state that they have been running their microtrading smart bot without any problems for six months.
When their initial coin offering ends, the company is saying they will launch their Gold Reward token, otherwise known as GRX, trading platform. This should last between November and December. With that said, however, the tokens will apparently be useless until the end of the first quarter of 2018, which is when the company is claiming they will launch their Gold Rewards token gamification API. In 2019, they are planning to release an app for Android phones too.
While they have a list of goals that definitely makes it seem like they are planning to move forward with their project, they have very little documentation backing them on whether or not they really have anything in the works at all. They do not have beta testers or MVP users, which seems a bit suspicious since normally, that would be how you test for bugs and glitches.
What Are The Workings Of GoldReward?
Just like many other pyramid schemes, Gold Reward relies on the use of their Gold Reward Tokens, with those tokens being more or less useless as they are not directly linked to any services or goods. That being said, the value of the Gold Reward tokens is based upon how many people are members in the company.
Something that definitely stands out, is how upon looking at the webpage, you can see that Gold Reward claims that their tokens have the ability to increase infinitely. They also state that Gold Reward Tokens can earn up to 35 percent ROI every month when you trade them.
With their three main functions being a gamification technology, being fuel for intelligent analytics engines and having a high value reward coin, something definitely seems off. The company is basically claiming their currency will one day be able to do almost anything.
Nothing that Gold Reward is claiming to be doing is backed with any sort of proof. Whatever the gamification technology is, if they even have an analytics engine, if their tokens have any value, all of it is up for question. From the looks of it, Gold Reward is just another pyramid scheme looking to swindle you out of your hard-earned cash.
As we stated, they do not go into detail about what their gamification system is. They state that it will reach a huge sum of money next year, but do not show any information as to how they reached that number or where they are getting their information from.
These claims, whether true or not, are not backed with evidence and should definitely make you a bit skeptical as to whether or not this is a legit platform or not.
GoldReward’s Initial Coin Offering
In the middle of October, Gold Reward launched their initial coin offering. Their token is an Ethereum-based ERC20-complaint token. Within one day, nearly 3260 different addresses had purchased tokens.
Gold Reward’s initial coin offering used four rounds. The pre-sale, which offered 5 million Gold Reward tokens, which translated to 4.5 million tokens in addition to 10 percent in bonuses. The initial coin offering round 1, which offered 4.5 million Gold Reward tokens which translated to 4,050,000 tokens in addition to 10 percent in bonuses. The initial coin offering round 2, which included 4 million Gold Reward tokens, translating into 3.7 million tokens in addition to 7.5 percent in bonuses. And finally, the initial coin offering round 3, which included 4 million Gold Reward tokens, translating into 3,760,000 tokens along with 6 percent in bonuses.
There were 20 million Gold Reward Tokens available for the initial coin offering. Of that 20 million, 17.5 million tokens were available to be purchased during their initial coin offering.
To summarize, Gold Reward looks to be just like many of the pyramid schemes before it. They do not go into detail about who they are or where they are located, what their platform is or what experience they have. There are no goods or services available to the public and they do not have a whitepaper. While their webpage definitely looks more professional than some of the scams out there, it does not offer much information and does not go into detail on what their overall goals are.
They lack the proof necessary to back the claims they make so they could easily just be making it all up.
While it may be possible to make a profit through Gold Reward, it seems like they will fail eventually, just like the schemes before them. If the company does a huge turnaround and starts offering more information to the public, however, maybe they can back their claims and prove to be something more than a pyramid scheme destined to fall apart before its prime.
Regardless, if you choose to invest in Gold Reward, just bear in mind that you must be willing to risk everything you invest. Much like every cryptocurrency out there, there is always a huge risk in losing it all. Always do research and make sure you are comfortable with what you are paying for in the end.