Gnox crypto on presale — is it a scam or legit?

Read CoinChapter.com on Google News

YEREVAN (CoinChapter.com) – Gnox crypto invited much attention since its GNOX token presale transitioned into the final third stage (July 12 – Aug 12).

The new DeFi “treasury” platform aims to offer its customers high returns and claims its ICO might top Ethereum. First, investors should rotate their “scam alert” dishes; here’s why.

Is Gnox crypto a scam?

The bold claims might not have enough weight, as the available information on Gnox and GNOX crypto prices comes from the team or paid promotions.

“With a strong business model that resulted in Gnox’s price growth, crypto analysts believe that the token will top Ethereum’s initial coin offering in 2014,” claim the promotional articles. However, there are no such assessments from independent analysts in sight.

The Gnox Protocol is proud to be the world’s first reflection project which uses our treasury to invest in DeFi yield earning protocols for its users! We are establishing a new standard in tokenomics and marketing techniques within the DeFi space.

advertises the project’s whitepaper.

Also read: Degrain DGRN crypto on presale. Should other DeFi platforms worry?

Meanwhile, the token’s other promotional articles claim that “63% Price Increase in Presale Could Lead to a 20x Launch Price, Outperforming Fantom (FTM) and DogeCoin (DOGE).” However, as the GNOX token is in presale, no official coin tracking website can provide information on its price.

GNOX token red flags

The project’s whitepaper does not leave an impression of an outright scam. Moreover, the project passed an audit test from Soken Securities. “The intent of the Gnox team is not aimed at actions regarding scam or any other financial wrongdoings,” says the report.

The whitepaper also states, “2% of all transactions are dedicated to marketing efforts to create a consistent flow of new users and token price appreciation.”

1% of every transaction is redistributed to holders in $GNOX, which is automatically paid every 60 Minutes. 1% of every transaction is transferred into a Liquidity Pool for Pancakeswap to create a stable price floor. 6% of every transaction is transferred into the DeFi Treasury, *see treasury section.

further clarifies the team.

Also read: United Investors Group International (UIGI) – scam or legit?

However, there are some red flags that potential investors should be aware of. First of all, the project’s team is anonymous. The team provides first names in the whitepaper, with no last names, LinkedIn links, or any other way to check their identity.

Although common in the crypto sphere, team anonymity could raise further trust issues regarding investors.

Furthermore, despite the presale ending a few weeks away, the whitepaper does not provide any token distribution plan or even the percentage of coins participating in the ICO.

Also read: Squid Game Season 2 has been out — but in crypto verse.

It might be early to call GNOX crypto an outright scam, but investors should be aware of the risks and rewards of the ever-growing number of liquidity providers in the DeFi community. In addition, Gnox has several red flags against it.

Meanwhile, the only information about the project comes from the official website or promotional articles. Thus, traders should exercise caution while considering an investment.

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Email Address *

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.