TenX (PAY) Founder Linked to Austrian Pyramid Scheme
The TenX ICO project, which ran into trouble with its cryptocurrency payment card, keeps getting buffeted by bad news.
Julian Hosp, the president of TenX (PAY), is allegedly connected to Lyoness, a pyramid discount shopping scheme in Austria. A video has surfaced showing Hosp participating in Lyoness training and recruitment of new members, engaging in aggressive marketing tactics. Older examples of the Hosp style of aggressive marketing were pointed out in an investigation by Fintelegram.
The investigation showed that before reinventing himself as an initial coin offering (ICO) expert and proponent of TenX, Hosp was careful to erase the record of his involvement with Lyoness.
Launched during the peak time for crowdsales in June 2017, TenX was one of the most successful ICOs. It had 4,000 backers and raised 245,834 ETH, which was worth $80 million at the time but only $23.3 million at current ETH prices at about $95.
The market capitalization of PAY is above $28 million. The asset saw an immediate pump-and-dump event upon its first exchange listing, with the team possibly selling their holdings as there was no lockdown period for the token. In August 2017, PAY reached $4.95 before crashing back to $1.50. It hit a record at $5.11 on January 4, 2018, only to see its value stripped away by the bear market.
The TenX project has faced growing skepticism, especially since the card and reward system are nowhere near reaching customers.
The loss of a card processing company, Wavecrest, hit several crypto providers hard, including TenX. Since then, the price of PAY has slid along with the rest of the market. Just in the past month, the token is down about 50%, from the $0.50 range to $0.26. PAY is highly dependent on speculative trading on Korean exchanges and has several pairs with Tether (USDT). However, it has lost some of its credibility, becoming one of the high-profile ICOs with no working product and no VISA card provider since Wavecrest discontinued its services.
While the Monaco (MCO) card is already functional, the TenX ecosystem is far from offering payments. Experts have noted yet another risk - since the PAY token allows owners to receive rewards and commissions, it could be considered an unregistered security.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.