After gaining 1000% on its first day of trading, investors have started perceiving Clucoin as a scam. If you are thinking about investing in this new cryptocurrency then here are all details you need to know.
Officially released on May 20th this year, Clucoin has become the talk of town. On the very day of its launch, it hit the market cap of almost $136million. Considering the sudden push investors are being warned about its legitimacy. Some investors have an opinion that it was “pushed up by speculation”.
The concept of this newly launched crypto token resembles that of the SafeMoon’s reward system. It is based on smart staking system and the project describes itself as a “hyper deflationary token”. It is based on Binance Smart Chain with a POS system base. The purpose of this project is to generate revenue, later some part of it will be donated to charity.
Let’s discover whether Clucoin is a scam or not.
What Is Clucoin
Clucoin is a new Crypto token that is being launched recently. It differs from all other cryptocurrencies because of its built-in charity system. According to the project, the transaction fee will be shared between the stakeholders and charities.
Though there isn’t any definite percentage announced by the project for the charity, it has made it clear that the shareholders will get 5% interest for holding and staking their coin. Being new, this crypto token isn’t available on any of the major data tracking websites.
While talking to Sun about the sudden value rise, Susannah Streeter a senior Investment and markets analyst said, “It appears the price is being pushed up simply on a wave of speculation. She further added, “It promises to donate some fees earned from its model to charities around the world, but there are no details of which good causes could be supported.”The lack of regulation governing the crypto world is a real worry as there is little oversight of where the money ends up.”
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Is Clucoin A Scam
Investing in cryptocurrencies is always a risky business as making money from it is never guaranteed. So, you should know all the risks before you buy Cryptocurrencies as an investment. Being extremely volatile your investment can fall to the ground or go up to the sky in a blink of an eye. Therefore, always invest in what you understand. If you don’t have much knowledge of the market, then investing in any of the cryptocurrencies will be risky.
However, CluCoin has recently gone through an audit by a reputable firm CertiK. By doing so it has given a strong message to its current and future investors. Considering the audit decision, we can witness the commitment of the developers. Investors have also appreciated it for providing them peace of mind.
It is also essential to know that CluCoin is built in a way to provide extra security for the investors. After the recent audit, CluCoin has received a 100% rating from CertiK. This audit report is now open to all the investors so, they can make well-educated decisions on the project’s code.
Currently, it has made a substantial recovery since 24th May, with its process drifting near $0.00000024. The project team has also selected a winner for $500,000 in CLU. 1/12th of the amount will be given to the winner every month.
Final Verdict
Among most of the cryptocurrencies that have no real life purpose, CluCoin has come up as an interesting token. Its real life usage on charities makes it different from all other digital currencies but it still remains unclear whether or not it will be able to sustain the growth level.