Powh.io Review – Is Powh 3D Coin an Eth Pyramid Scam?
PoWH coin is an Ethereum smart contact with a feature that’s supposed to award 10% flat fee as dividends to all token holders as long as people buy, sell or trade Ethereum for Powh coins and vice versa.
The reason I am writing this PoWH 3D review is because I have seen a general interest for this token, and I want to give my input so that people who are getting into this may avoid surprises later on.
However, if you are a newbie and you want to learn how I usually identify good tokens and Cryptocurrencies to invest in, start with this course here.
Or you can also start mining Cryptocurrencies here to build your Ethereum portfolio.
The domain Powh.io first appeared online on February 2018 and was updated on April 2018, which suggests that the domain changed hands from the previous owner to the current anonymous owner.
As always, you should be very cautious with domains whose owners are discrete. Most of the time, there is always a good reason as to why they are anonymous.
What Powh 3D coin is offering seems quite plausible until you begin to look at it from another perspective.
On one hand, it has the element of a ponzi scheme. On the other, it wears the mask of a ”serious” smart contact based investment opportunity involving the use of Ethereum.
I do not like the fact that the owner is anonymous because it reminds me of what a scam like Bitconnect did to investors a while ago.
There are several instances where this website has mentioned Bitconnect in an attempt to persuade users that they are not an Eth pyramid scheme.
PoWH 3D Review: Should you invest?
To decide whether or not you should invest in this, look at the present factors and think long and hard.
They claim that PowH 3D smart contact is completely decentralized and unless you want to destroy the entire Ethereum network, you can’t destroy it.
My perception is that PowH.io can be stopped when regulators step in. But rest assured that the Ethereum network is here to stay.
PowH 3D CoinMarketCap value is actually zero USD. This is a sign that the coin is worthless outside the Powh exchange platform.
They claim that when someone buys, sells or trades the coin, a 10% flat fee will be applied and this revenue will be ”melted” down to all token holders.
That’s the first way to allegedly generate revenue if you hold the tokens.
Given that this site has been around for a couple of weeks now and they are also claiming that their platform is processing up to 3000 volume of transactions every 24 hours, I was expecting the coin to have accumulated some value on the CoinMarketCap platform.
If the value of this coin is truly determined by the forces of demand and supply (as the website states it), we should be able to see an assigned value on the Coinmarketcap website.
Therefore, a market value of zero means that something different is happening. Is this an Eth pyramid in disguise?
This actually proves to me that these tokens have no value outside the Powh coin 3D ecosystem.
My assertion is proved by this page – named Powh 3D chart, where actual value of the coin is tracked. As you can see, the coin suddenly has value.
The point is, this is an Eth pyramid scheme whose tokens are worthless outside the Powh 3D ecosystem. That is why its coinmarketcap value is actually zero and you can’t sell it anywhere.
Why they call it Powh 3D?
According to Powh.io, the value of this coin allegedly increases or decreases based on these 3 things:
- Trading (exchange of Powh coin to Eth and vice versa or what they refer to as Proof of Weak Hands Ethereum mining algorithm
- Staking where investors own a ”masternode” so that when someone purchases a contract through their link, they make 33% of fees that they would have otherwise paid into the contract.
- A robot that holds all Ethereum you ever spent to acquire tokens
Powh 3d Review: The truth
Scammers are now hiding behind the idea of smart contracts because outright thievery involving lies that they mine Crypto currencies or trade them on behalf of their investors is slowly being faced out.
You can only mine Cryptocurrencies using these legitimate cloud mining companies.
When they say smart contracts, investors will think this is far from an Eth pyramid scheme. But the idea still remains unaltered.
Powh 3d coin is just another Eth Pyramid scheme whose ROIs are based on how people are transacting their coin with Ethereum.
I would never go into it because, even though the anonymous owner is claiming to pay in Ethereum rather than Powh coins, their business model suggests that they are depending on new buyers to generate volume that will be used to pay out ROIs.
That is the actual definition of an Eth Pyramid scam. Initially, members may get paid in Ethereum. But as time goes, people will realize that trading real money for a worthless Powh coin is a stupid idea.
Eventually, people will stop buying and Powh Exchange will run dry with more people holding the coins and no buyers showing up.
It actually works like a pump and dump group where initial investors make money but those who join later on lose money.
Ultimately, the owner of Powh.io will do a runner with people’s money. If they say 10% flat fee is distributed to token holders, then it means they are pocketing 90%. If they run away 6 months from now, you will be left with worthless coins in your wallet.