Scams in the digital currency ecosystem are not a new event and investors understand that the more advanced the industry gets, the more ubiquitous scam tokens will be. One of the most publicized cryptocurrency projects that have proven itself to be a scam is Caprice Finance, and despite the promises it made to users, it has ended up carting away with unsuspecting investors’ funds.
Caprice Finance made its debut as a project with multi-chain support and claims it can integrate well with Ethereum (ETH), Polygon (MATIC), and BNB Chains respectively. The project’s website was designed with an attractive UX, one that is comparable to other legitimate protocols in the space, further shielding its real motive as a protocol that is out there to scam people.
Claimed to be powered by the CFT token, the project maintained the position that holders of its native coin can benefit from its robust yield farming product which incentivizes liquidity providers (LPs) to stake or lock up their crypto assets in a smart contract-based liquidity pool.
Caprice Finance also branded itself as a high-yield engine with a robust burning mechanism that is targeted at fueling the incremental growth of the token over time. The burning mechanism is projected to stir a deflation in the total supply of the coin pegged at about 99,000,000,000 at genesis.
The efforts put into convincing investors that Caprice Finance was a worthy investment were short-lived, and today, many analysts are warning against the token.
Proving Caprice Finance (CFT) as a Scam Token
There are many indicators that confirm the status of Caprice Finance as a scam token. These are outlined as such;
Suspicious social media activity
Caprice Finance has taken down its official Twitter profile as showcased in the image below. The project relied on sponsored posts on media publications at the early stages of its emergence, one that helped it gain massive publicity within a short period of time.
Caprice Finance, unlike the bulk of projects out there, has little to no presence on other social media platforms including Facebook, Discord, Instagram, and its community on Telegram is often engulfed with FUD born out of the project’s apparent failure.
Anonymous Founders and VC List
While it detailed in its roadmap that it has completed the process of building its core team, Caprice Finance indeed has no face attached to the project. Infact, the protocol does not have a single Venture Capital firm backing it, a rare occurrence for a project that claims it has the requisite model to transform the world of finance.
Poor Rating from Crypto Influencers
All over social media, Caprice Finance is being tagged exactly for what it is – a scam token. Unlike other more prestigious digital currency projects, there are more influencers rating CFT as a scam than those who are not, and the voice of these individuals cannot be ignored.
Scams are real in the digital currency ecosystem and they are not going away anytime soon, at least until regulations become more encompassing across the board. With Caprice Finance coming off as the latest token to be flagged, it is recommended for investors to watch out for an unbiased review of futures tokens to back, especially as the Pre-sale stage moving forward.