This lending platform has more red flags than a chinese military parade.
- Impressive daily interest rate
- No exchange
- Price manipulation
- No proof of trading bot
- Possible pyramid scheme
What Is CryptoLux?
I’ve seen CryptoLux ranked very high on several other lending review sites with top score in pretty much every box, so I just had to see what all the fuzz was about. After just 3 minutes looking through the site I was taken back to when I first invested in a High Yield Investment Program (HYIP) called BitPetite. BitPetite was all the rage back in mid 2017 posing as a Bitcoin tumbler and many youtubers were talking highly about this program, so I got on the FOMO train and to make a long story short, BitPetite turned out to be a scam. CryptoLux is pretty much a HYIP site posing as a lending platform and yes you can earn money with these sites, but you have to get in early. HYIP sites have a very short shelf life and usually end when the scammers have met their desired goal or when the money starts to dry up.
From what I can tell CryptoLux ended their ICO in mid April and their telegram channel has about 30.000 subscribers, so they have been doing a good job of getting people on to the platform.
That was a pretty bleak intro to a platform, and I will expand on the details during the review. CryptoLux has a full page in their whitepaper trying to explain what they are about, but they are pretty much just describing any blockchain coin and no mention about their lending program. But there is also a video describing their platform, so let’s watch:
The first half is about nothing and the second half in which they should tell about their product is just fluff and an empty promise of you making a it big if you strike now. Nice try CryptoLux, nice try.
How Does CryptoLux Make Money?
CryptoLyx claims to have a trading bot which generates all the profits and the funny thing about this is that there is more information about the bot on their facebook page, than in their whitepaper. I’ve done a blatant copy/paste from facebook:
CryptoLux – Today’s Most Advanced Crypto Trading System
- Easy profits with CryptoLux AI trading platform
- Gain up to 45% per month by following the few easy steps of our trading system and with a minimum requirement investment.
CryptoLux offers one of the most advanced AI based crypto-trading systems, rounding up your investments with up to 45% per month. Our artificial intelligence trading bot makes all the hard decision work for you, being closely supervised by our highly-trained team of experts, to be sure that the best decisions to your interest are taken.
The buzzword being AI, which is all the rave these days. I’ve actually already done a review on a platform which also claimed to have an AI trading bot, but they went in to great details about it in their whitepaper. And if you have an AI trading bot, then you should go in to details about it instead of just writing you have it. CryptoLux is taking the lazy road and just claiming to have a bot, they don’t even explain what, where or how they are trading.
The CryptoLux Crypto Trading Package
CryptoLux takes a different approach to the lending model by not having the tier system that we are used to. The tier system is still there, but it’s based on ranks. You start out as bronze and then you can move up the rank by investing more. The next level up from bronze to silver will cost $50 by investing and you will reach diamond status when you have invested $20.000 in the platform. What happens is that you will get a percentage of your invested capital back each day and the higher the rank the quicker you will get you money back.
The thing to keep in mind here is that you will not get your initial capital back like you are used to with other lending programs. No, every package will actually just be a 150% payback and when you go beyond the ROI day, that’s when you are starting to earn a profit. Just to hammer this in, you make a loan of $100 and each day to will get $1.16 back in your wallet. After 86 days you will have made your initial $100 back and after 129 days you will have $150 and the “package is done.
The funny thing about this crypto trading package is that you can’t actually use the CryptoLux coin, nope you have to pay for the packages with Bitcoin, Ethereum, Litecoin or USD. To me this seems very odd, since every lending platform is based around it’s own coin.
|Rank||Interest||ROI (days)||Running Out (days)|
The CryptoLux Cold Storage Package
The main use for the CryptoLux coin seems to be their cold storage packages, which actually seems to work just like any other lending program, but you will get paid in CryptoLux coins and not $USD. This is pretty much what I would call staking with benefits. CryptoLux will lock your coins away for 1 year and depending on your rank you will get a hefty percentage paid out every day. It is possible to cancel the cold storage package after 90 days though. But it is also possible to buy the cold storage package without having any CLX coins, they will accept your Bitcoin, Ethereum or Litecoin as well. This doesn’t make any sense to me, how does the cold storage of other cryptocurrencies improve on the CryptoLux platform, isn’t the point of all this to reduce the amount of liquid CLX coins to ramp up the price?
On top of that you will also get extra percentage boost depending on how much you put in the cold storage.
|Total CLX storage||Bonus Interest|
The CryptoLux Staking Program
It is also possible to stake the CLX coins, but it’s not clear how this is done. There doesn’t seem to be any wallet you can download and there isn’t a staking option on the website. I don’t even know why this is an option to be honest, the cold storage packages pays so much more daily compared to staking, so maybe they just added this option to get another page in their white paper.
I haven’t touched this subject on any of the other platforms I’ve done so far since they all were pretty basic. This is certainly not the case with CryptoLux, they offer great percentages of referrals up to 10 tiers. This just screams Multi-level marketing (MLM) also called pyramid selling and this is a major red flag for me. BitConnect had a similar affiliate program, but even they had to dial it down when it got to popular.
The Team Behind CryptoLux?
The whitepaper doesn’t mention anything about any team, no background information, nothing at all.
But lets look at their domain and hosting situation. The domain was bought 2017-08-24 and will expire in 2 years, so there is pretty much 1 year left until expiration date. I doubt the platform will stay alive for that long though, well maybe if we get another bull run soon and the hype comes back. The site is not hosted on a dedicated server, which was to be expected.
Their domain contact is protected by WhoIsGuard, which really isn’t a surprise at all since all website are these days, even mine.
The Bottom Line
I’m really not impressed with CryptoLux and I’m quite surprised that it’s rated so high on other lending platform review or toplist sites. There is still a couple of things I haven’t mentioned during this review and one thing is the internal exchange. From what information I could gather, it seems like there was an internal exchange at one point, but I don’t know when or why it was removed. The CLX coin is currently not found on CoinMarketCap, which is an indicator of it not being on any external exchange either. So how can investors sell or buy the CLX coin? Right now the price is set for $4 on the CryptoLux website, but how did that value come to be?
But the CLX coin doesn’t even seem to have any real purpose to the platform, since you can do all the lending packages with Bitcoin and some popular altcoins. If you for some reason would chose the cold storage package, then your daily interest would be the CLX coin, even if you invested with another cryptocurrency. It just seems like they are converting your hard-earned crypto in to a shit coin with no purpose.
Another red flag for me is that they are actually giving away a free crypto trading package on sign up, it’s just for $5, but this is a practice I’ve seen with other HYIP sites before and think about it; who gives away free money? This again seems like a MLM scheme to pull people in and get them to invest more. The ranking system alone seems like a gimmick to get people to invest more and level up.
I’ve mentioned this several times before with other platform and CryptoLux falls in to the same pitfall with an unknown team with a poor hosting solution and a domain name with a near end of life date. It’s just a really bad look and specially with a platform like this, it seems like a lazy attempt of a money grab. If we go back to their promo video, then it’s very clear that these guys are selling the dream and not the product, another typical MLM scheme.
If you already are invested in CryptoLux or for some reason are thinking about doing now, then my advise to you is pull money put every day if possible. This will limit your losses when the platform eventually goes belly up. This site will either just vanish from one day to another without any warning or they will stir up some mad promo with wicked gains to get more people to throw money at them before they close shop.
I have a link below for the brave souls who wish to venture into this platform, but there are a few better options on this site you should look at instead.