The War On Shitcoins Episode 9: TenX (PAY). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
TenX (PAY) promised to bring cryptocurrency debit cards to the world, which would have been a major step for global cryptocurrency adoption. TenX held its ICO for TenX (PAY) in June 2017 and raised $80 million. In the year since the crypto market peak in January 2018, the price of TenX (PAY) has been decaying like radioactive waste, and now its market cap is less than $20 million and dropping steadily. It has been 19 months since the ICO and TenX website said the card status is a “work in progress”.
Until recently, the TenX mobile app accepted deposits of TenX (PAY) to reserve premium debit cards, but now the app says debit cards are unavailable in the United States, and users are prompted to sign up for a waitlist.
It is unknown if users in the United States were refunded for their deposits, or if they must wait until the debit cards become available. Further, the TenX app collected extensive personal information to sign up for debit cards, including social security numbers, birthdates, names, and a front and back driver license picture. It is nonsensical that the TenX app would require so much personal information for debit cards that never existed and raises concerns regarding identity fraud.
The President of TenX, Julian Hosp, was outed as a former scammer in the Lyoness pyramid scheme. Soon afterwards Hosp announced he was leaving TenX, and he dumped all of his TenX (PAY), amounting to nearly $1 million. This appears to have caused significant damage to TenX’s (PAY) market price.
In an attempt to make TenX (PAY) investors interested in continuing to hold their coins, a new token called TenX Token will be distributed to people who held TenX (PAY) on Dec. 30, 2018. For every one TenX (PAY) people held during that time, they will receive one TenX token. But users will have to hand over all of their personal information to receive their TenX tokens, and citizens of 20 countries — including the United States — will not receive any TenX tokens, and people who had TenX (PAY) on an exchange will not receive the TenX token.
Essentially, this airdrop excludes almost all TenX (PAY) holders and will mostly serve to enrich TenX itself. This is especially because TenX holds 91 million TenX (PAY), which is 44 percent of the total supply. That makes the new TenX token appear to be a gimmick to raise more money for TenX.
In short, TenX promised a crypto debit card and never delivered, and now TenX (PAY) is steadily losing all of its value. Any investor who believed in TenX’s potential and held long term has taken heavy losses. TenX collected a tremendous amount of personal information from users for no good reason since it never really had a crypto debit card available. It would have only been appropriate to collect such personal information if the crypto debit card was ready for issuance. To add insult to injury, the president of TenX is an alleged scammer, and he exited TenX (PAY), dumping $1 million of coins.
TenX (PAY) is a prime example of why the ICO market collapsed and why the Securities and Exchange Commission (SEC) had no choice but to effectively ban ICOs.