Today, we will answer a question from one of our viewers on YouTube. Here’s their comment:
“Sir, good day. Please review the (Cryptex decentralized finance staking program). It claims to operate on blockchain and generates 1% to 3% profit. Thank you, I’ll look forward to it.”
In this blog, we will discuss whether Cryptex is a legit staking platform or just a big scam.
Cryptex is a crypto investment company offering a Hybrid Decentralized Finance (DeFi) program utilizing modern financial instruments. According to their offers, Cryptex provides a staking program where you can earn 1% to 3% daily. Additionally, there’s a potential to earn $35,000 in 3 years and $471,000 in 5 years.
Cryptex doesn’t just offer staking. They also have a referral program where you can earn up to 20 generations deep. You can get 8% from direct referrals and 1% to 5% from indirect referrals.
The question is: “Is Cryptex’s earning system legitimate, or is it just another big scam?”
To answer this, let’s first understand what staking is and its purpose. This will help us determine if Cryptex’s platform is legitimate and if its staking program is real.
Staking is the process where cryptocurrency holders lock their funds as collateral to help validate transactions in a blockchain network. Staking serves the same purpose as mining but is more energy-efficient.
In staking, the deposit acts as collateral to maintain the security and integrity of the network. Validators are required to deposit funds to guarantee proper behavior. If a validator cheats or commits errors, their collateral may be slashed as a penalty. The deposit is not used to generate profits; it is a mechanism for blockchain security.
A smart contract is a self-executing contract that defines the conditions of staking operations. On a blockchain, the smart contract governs the reward system, blockchain conditions, and other rules without needing third-party services.
In Cryptex, smart contracts are reportedly used to manage the staking program. But the question is: “Is Cryptex’s staking system legitimate?”
Based on Cryptex’s system, we can see that their staking mechanism does not align with the principles of real staking. Here’s why:
Cryptex requires a $100 handling fee or activation fee to participate in staking. Legitimate staking platforms like Binance do not require upfront fees. You only need to deposit your staking capital to earn rewards.
Cryptex promises 1% to 3% daily profits, which compound over time. In real staking, rewards depend on network conditions, such as transaction volume. Consistent and high returns like these are unrealistic.
Earning $35,000 in 3 years and $471,000 in 5 years is extremely high compared to real staking rewards. For example, Ethereum’s typical annual percentage yield (APY) is 3% to 7%. Cryptex’s APY, ranging from 29.21% to 75.34%, is far above legitimate staking platforms.
In real staking, earnings come from transaction fees, not referral commissions. Having a 20-level referral program is not typical in legitimate staking platforms. Such a system is more aligned with Ponzi schemes or pyramid schemes.
Based on their staking mechanism and business model, it is evident that:
Given the red flags we’ve identified, we can conclude that Cryptex is a fake staking platform masquerading as a Ponzi scheme or pyramid scheme. Earnings are more dependent on recruiting new members rather than actual staking rewards.
If you’re considering investing, it’s crucial to conduct thorough research and avoid platforms with unrealistic and misleading offers like Cryptex.
What do you think about Cryptex? Do you believe it’s a legit staking platform, and why? Share your thoughts in the comments section. If you have experience with this platform, let us know to help others make informed decisions.
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