A crypro-currency firm called Won Project has sent its investors panicking after announcing that will shut its multi-level marketing (MLM) scheme for good starting Monday, May 11.
Won Project made the decision in an internal memo after the Securities and Exchange Commission (SEC) advised the public to stop purchasing the company’s Woncoin or investing on any of its schemes, effectively tagging its operations as unauthorized.
The MLM platform has already ceased taking in new entry or pay-ins, with Won Project advising coin holders to withdraw all their funds this week before closing.
This has distressed its local investors on the purchases they made at P20 per Woncoin. Now they are faced with a few days’ notice to sell their coin that can only be valued for less than a peso. Without any immediate adjustments tomorrow, investors will be starting the week with a lot less for a promise of way more.
An investor who requested not to be identified told Newsbytes.PH said some members of the MLM network are confused and worried that they will not get their investments back.
“The only way to withdraw from Won Project is via Woncoins, which they need to trade in an exchange like stex.com or mercatox.com,” he said. “On those exchanges, one Woncoin is around 6 centavos. Members are worried that they will be losing a substantial amount of their investments if the offer price for Woncoin in the exchanges will not be adjusted.”
The entity, which claims to be based in Singapore, focuses on tokenizing OFW remittances, cellphone load, air ticket, as well as travel and tours using blockchain technology.
It received flak recently for its 50% bonus promotion for purchases made during the quarantine period. The promo, which took place for the entire first half of April, sounded too good to be true. It turned out that it was running a 50% bonus on purchases with a daily cap to limit its investors’ potential gain.
According to the SEC, this was a scheme used to secure the funds onboarded by new investors which will then be used to pay off its initial investors’ Return on Investments (ROI). The entity promises a 1.5% passive income for each package they offer after 100 weekdays. As an example, a $100 initial investment will be valued at $150 after 100 days.