Were you introduced Block Aura by your friend and want to know if it is a good investment? With the introduction of any new project in the market that receives even a little hype, users might go in with a herd mentality and in the fear of missing out can end up making hasty decisions. So to prevent you from losing out on your hard-earned money, we are here dissecting the new Block Aura (TBAC) coin and telling you whether it is a good buy or not.
What is Block Aura?
BlockAura is a MLM crypto project sold under the impression of decentralised blokchain.
BlockAura was founded by Firoz Multaini, who is also the director of the NIOC exchange. They claim, their blockchain would potentially support 450–500k transactions every second. They say they will use the Advance PoS mechanism to enhance transaction speed. However, we highly doubt their claim. When you go to their Github account, you can find nothing.
You can view BlockAura’s Github here.
Let’s deep dive to see how this MLM works? BlockAura claims that it is the first dollar-based smart contract. The basic project plan they offer to the users is estimated at around $20. These twenty dollars are further sectioned into CLUBX3, CLUB X4, AND CULB ROI. 25% of the invested amount goes to CLUB X3, and another 25% to CLUB X4. The remaining 50% directly go the CLUB ROI.
So for example to invest $20 in the project, $% goes to CLUB X3, $5 to CLUB X4 and $10 to CLUB ROI.
What Are these Clubs?
Let’s look at CLUB X3 first. CLUB X3 is the part of the amount that when invested, is directly given to you only. Taking the previous example, if you invest $20, the $5 of CLUB X3 will become your first income.
But the catch is that this amount will not be seen in your wallet, because it is directly reinvested. In CLUB X4, the 25% of your invested amount becomes the non-working income.
Looking at CLUB ROI, it gives you a return of 1% every day for up to 200 days in the form of a passive income.
We had earlier seen many such projects that promised high returns and then ended up duping gullible investors.
In long run, it is not sustainable to pay 1% everyday. Deep inside you know it. So before investing in this project, ask yourself, are you willing to lose all your investment? If yes, stop your research right away, and invest.
Else, read more about Bitconnect and other similar projects.
What is the token supply?
According to the available whitepaper, “There are initially 2,000,000 (two million) tokens of Block Aura (TBAC) deployed using a utility Token smart contract on Binance Smart Chain”.
Hence, the Total Issuance token is 2 million TBAC.
The project has a self-reported market cap value of $6,884,506.
The Token Allocation available on the website indicates 10% to locked liquidity, 85% to Airdrops and the remaining 5% is distributed to Ecosystem Partners and Collaborators.
What is the value of the token?
The token is available at $3.95 as of 18th November 2022. The trade value of the token has shown a 2583.16% rise in the last twenty-four hours and is at $6,720 currently. The token is not listed on any popular crypto exchanges like Binance, Bybit and Uphold. It is only listed on Pancakeswap, Biswap and Apeswap. All these exchanges are decentralised exchanges and anyone can list their tokens in a DEX.
Is Staking BlockAura legit?
From a legal standpoint, staking is completely legal provided you are complying with the anti-money laundering, KYC and taxation regulations.
But from a financial point of view, there are certain things you should keep in mind. When you stake a token, you are essentially buying a certain number of tokens and locking them up in one place and against that, you can validate transactions.
As a reward mechanism, you are given certain extra tokens.
Now, when you lock this money in projects like BlockAura, especially in such a Bear Market, you can end up making a huge loss.
So while staking might bring you rewards, in the current climate, doing so on tokens of the likes of BlockAura could bring down your overall capital investment by a huge margin.
What is an MLM scheme?
Before we understand whether buying the BlockAura token is recommended or not, let us first understand what is a Multilevel Marketing (MLM) scheme. A Multilevel Marketing scheme employs a business model that sits in the middle of being a strategic and traditional direct marketing sales technique and a pyramid scheme.
An MLM scheme becomes a network marketing practice when a certain person buys a particular product from the distributor and then sells it for profit. The seller then pushes some of the profit back to the distributor.
In simple words, you need to keep bringing more people to this BlockAura project. And from the new investor’s money, old investors would get the promised returns.
And there will be a time, when this may bust. When? When there will be no more new joinees.
Should you buy the TBAC token?
BlockAura has come across as an MLM (Multilevel Marketing) scheme. Such projects often turn out to be just a cash-grab practice and are bound to fail.
If the staking gets locked for a certain period, then the unlocking and selling by users could collapse the market. Many investors have also complained about the withdrawals in the BlockAura token.
The rewards offered also seem too good to be true and could turn out to be just a hoax.
Hence we do not advise investing in such MLM practices.