Is the platform Web3GPT a legitimate AI trading application, or is it just another elaborate scam?

Let’s dive into the details and find out.

What is Web3GPT?

For those unfamiliar with Web3GPT, according to its website, it is an artificial intelligence (AI) application that utilizes a neural network model to execute arbitrage trading strategies.

Arbitrage involves buying cryptocurrency at a low price on one platform and selling it at a higher price on another platform. For example, buying on Binance and selling on OKX.

The question is: Is this claim true?

How Does We It Claim You Can Earn Money?

Web3GPT offers two ways to earn:

1. Investing:
   • The platform claims to handle trading activities on your behalf.
   • You don’t need to have a trading platform yourself.
2. Inviting Others:
   • You earn income by referring people who also invest in the platform.

But how much can you actually earn?

Analyzing: Is It Genuine or Fake?

Let’s discuss the pros and cons of Web3GPT, as well as the red flags that I’ve identified.

The Good:

The only positive aspect I’ve observed is that you can earn money for now. Beyond this, there are no other redeeming qualities.

The Bad and the Red Flags:

1. Fake AI Trading:
   • Upon analyzing their website’s script and code, there is no clear evidence of actual trading activities.
   • There is no indication that the platform connects to cryptocurrency exchanges like Binance, KuCoin, Huobi, Bybit, or OKX via API calls.
   • The arbitrage trading they claim to execute lacks any real connection to exchanges.
   • The trading activities appear to be simulated—the platform generates fake data to create the illusion of trading. This means that the profits you see are fabricated.
2. Lack of Security Features:
   • The platform does not use encryption or validation for its files—a critical component for any system handling transactions and personal information.
   • Web3GPT’s system does not use API keys or access tokens for secure trading, further proving the absence of real trading activity.
3. No Real AI or Trading Bot:
   • There is no genuine AI trading or automated bot involved in executing trades.
   • The platform’s system resembles task scams, where user actions create the illusion of profitability, but no actual trading takes place.
4. Ponzi Scheme Structure:
   • The absence of real trading activities indicates that profits come solely from investments made by new members.
   • Signs of a Ponzi scheme:
     • Fixed Income: Claims of a 2.2% to 2.3% daily profit on every trade are unrealistic. No legitimate trading platform guarantees 100% winning trades without losses.
     • Recruitment-Based Earnings: Your daily income increases as you recruit more people, creating a pyramid-like structure. Profits depend on the continuous influx of new investors.
     • Rebates for Referrals: You earn rebates (e.g., 3% from Level 1 and 2% from Level 2 referrals), further reinforcing the pyramid structure.
   • Ponzi schemes collapse when the number of withdrawals exceeds the incoming investments, leaving late investors as the primary victims.

How Web3GPT’s System Works (or Doesn’t)

Here’s a closer look at how Web3GPT generates profits and why it’s problematic:

• Simulated Activity: The system creates fake trading data to make it seem like you’re earning from real trades.
• No Real Market Connection: Without API calls or connections to legitimate exchanges, the trading claims are entirely fabricated.
• Task-Based Actions: Users perform tasks that mimic trading actions but don’t involve actual cryptocurrency transactions.

Why Web3GPT Fits the Ponzi Scheme Model

The following features align Web3GPT with a typical Ponzi scheme:

1. Dependence on New Members: Profits are not generated by trading but by the investments of new recruits.
2. Unrealistic Returns: Guaranteed daily profits of 2.2% to 2.3% are not achievable in real-world trading.
3. Recruitment-Based Incentives: The more people you recruit, the more you supposedly earn, reinforcing a pyramid structure.

These characteristics make Web3GPT unsustainable, as the system collapses when recruitment slows down.

Signs of a Scam

1. No Transparency:
   • Lack of evidence for real trading activity.
   • No clear documentation of the trading mechanism.
2. Unrealistic Promises:
   • Daily fixed returns are impossible without risk.
3. Pyramid-Like Structure:
   • Earnings depend on recruiting new investors, not on legitimate activities.
4. Eventual Collapse:
   • The system’s reliance on continuous recruitment makes it destined to fail, leaving late investors empty-handed.

My Verdict on Web3GPT

Based on my analysis, Web3GPT is:

• A fake trading platform with no genuine AI or trading activities.
• A Ponzi scheme that relies on new investors to sustain payouts for earlier participants.

The claims of trading profits are false, as the platform does not use API keys or conduct real trades.

Instead, it uses task-based fraud to simulate activity, while profits come directly from new investors.

This type of system is unsustainable and will eventually collapse, leading to significant losses for those who join later.

Questions for You

What do you think about Web3GPT?

Have you earned significant money from it and consider it legit?

Or do you believe it’s a scam, as I do?

Share your opinions and experiences in the comments below to help others decide whether to engage with this platform or avoid it altogether.

Final Thoughts

Platforms like Web3GPT should be approached with caution.

The lack of transparency, fake trading activities, and pyramid-like structure are clear indicators of a scam.

Always research thoroughly before investing in any platform and be wary of unrealistic promises of high returns.