WEWE Global Cloud Minting Program

Where scam multilevel marketing meets crypto

The introductory material about the unlimited potential of cryptocurrencies and the dubious rationale for why a DAO is a fit legal entity to run such an enterprise was just an overture.

It is in the second half of most WEWE Global marketing material that we are introduced to the Cloud Minting Program.

Prior to November, the concept was that your investment would be used to rent hardware used to mint LYO tokens, with 0.33% interest earned each day. After November, the token which is “earned” is LFI another token generated out of thin air which again can be linked back to the technical team running LyoPay

Let’s walkthrough that process.

Imagine we had invest €1000 on the 22nd August. After payment is made in Bitcoin in the WEWE Platform (WEWE Global don’t accept fiat payments), let’s see the kind of return we get for our €1000.

Each day, we receive 0.33% in LYO tokens, so (after the activation and service fees which WEWE Global apply), approximately 2.07 LYO each day, which is compounded each day across the term.

Now after 900 days, we would expect to have €3000 ready for us to cash out, after all that is the “triple your money claim”. However the problem is that we can’t cash out to Euros directly. Instead, we need need first convert our LYO tokens to Bitcoin, and then find an exchange to convert that Bitcoin over to Euros and each of those trading pairs are likely to be different since our initial investment.

This is referred to as Foreign Exchange Risk which curiously is not present in any promotional or due diligence material produced by WEWE Global.

So, we’d have 1863 LYO tokens ( 900 × 2.07 ) at the end of our 900 days, which at the current rate of €0.8923 gives us a return of €1863 for our €1000. The lowest the price of LYO could fall in order to recover our full investment would be €0.53.

All being equal, the investment still returns 86.3% - however that trend looks pretty grim. If over the course of the last 6 months we have seen the value of this token fall so much, imagine what it will be worth after the full 900 days!

Perhaps this is the reason for the switch to the new LFI token occurred?

This is when the some red flags should start to be firing for anyone who has managed a balance sheet before. Some questions I asked myself when reviewing the material were:

Do these tokens actually exist?

We can see the holdings on the Binance Smart Chain - however the distribution of these tokens is skewed very much to a few large holders, and so perhaps this gives us the clue to how the minting program actually works.

The administrators of WEWE Global have likely cornered the market in these tokens, so are able to distribute them at a rate of 0.03% per day to those willing who have purchased a Cloud Minting Program lease.

Do the miners actually exist?

The WEWE Global promotional material emphasises that we know the machines are real because of the serial numbers and IP addresses are provided to end users. I have no reason to believe that these machines don’t exist.

Without any technical details as to how this mining actually works, (eg as a technically minded person I may want to standup my own miner without paying WEWE Global to manage it for me) I can only assume that if the actual machines exist, the leasing fee represents an astronomical markup to the price of the machine itself.

How can WEWE Global afford the Bitcoin cash outs?

I have no reason to believe that the cash out process is fake. Indeed, our WEWE Global Reseller Simple Passive Income has a YouTube video which demonstrates this process

and I have validated the 0.00381504 BTC transaction occurred on the Bitcoin blockchain

So, how then does WEWE Global fund these Bitcoin payments?

The answer, like every other Ponzi Scam out there is that payments will be able to continue for as long as new investors can be found.

We will continue our investigation into WEWE Global in our next article by analysing how new investors are brought into the ecosystem not through the utility of the tokens being mined, but through referral marketing bonuses and networking incentives.

These compensation plans are inherently flawed, unfair and deceptive like all multi level marketing schemes.

DO NOT INVEST YOUR MONEY IN WEWE GLOBAL

IT IS A MULTILEVEL MARKETING SCHEME

DON’T RISK YOUR SAVINGS ON FALSE PROMISES

NO MATTER HOW CONVINCING THE SALES PITCH