In this review we explain why we recommend staying away from charity cryptocurrencies Toyz Token and King Coin.
What is Toyz Token and King Coin
Toyz Token and King Coin are presented as cryptocurrencies with the mission of helping people in need, namely children and people without a home.
Both tokens are issued in the Binance Smart Chain and have some special properties, they generate fees that are supposed to be used for charity, for donations.
Besides that Toyz Token is promoted as an investment token that can earn you substantial returns.
A third token – Royal Coin – is being prepared. But we don’t think it would be wise to invest money in them.
Using cryptocurrencies for charity can be effective, it can be a good idea. But all depends on the execution. And in the case of Toyz Token the execution is horrible. This is why you should stay away from it.
The biggest event occured with Toyz Token last week when the owner Andrew Holness announced that all wallets associated with the project were compromised and all the tokens stolen.
What happened next was inevitable, a massive sellout made the price of the token crash. So much for Toyz Token being a good investment opportunity…
Holness posted an explanation on Facebook saying that he had all the private keys of the wallets in an online file and that hackers gained access to this file that was stored online.
There are people who believe that he scammed everybody and made a rug pull, others believe that it really was a mistake from his part. Either way this person cannot be trusted. Anybody storing crypto private keys in online files that are not encrypted is a total amateur that should not have the custody of his own tokens, let alone of tokens of a project that has a lot of investors.
To add insult to the injury, Holness did not even apologize and later he deleted his explanatory Facebook post. Now he is only telling people to buy the Toyz Token V2, in other words to send him money again. Don’t do it!
We have no way of knowing what really was behind this incident, but as we said, either it is a scam or Holness is not knowledgeable enough to take care of any crypto project. So the end result is the same, you should not invest in anything he does.
King Coin, Royal Coin and?
Holness already announced two other crypto projects: King Coin (KINGZ) and Royal Coin. Again, he is asking people to buy crypto tokens from him. Which is at least very immoral.
When you mess up hugely one project and make people lose money, you don’t just ask them to buy new tokens from you like that.
Holness also said that there will be four project in total, but we don’t know the name of the fourth one. Was it Solomon’s Protocol?
Toyz Token is being sold as an investment. The official website literally says that they ask you to invest with them and the your return on investment could be enormous.
We are no expert in investment laws, but this way Toyz Token sounds like an unregistered security. Because you invest in a common enterprise with the expectation of profits thank to the efforts of others.
Yes, Toyz Token is supposed to donate money or toys to children, but it is also promoted as an investment vehicle that can make you money. So it is possible that it is an unregistered security, which would be a big problem.
Toyz Token is being handled very poorly and it already has lost a lot of money to investors because the project’s wallets have been compromised. You should stay away from it as well as from King Coin and Royal Coin because they are run by the same person.
Be very careful when buying new cryptocurrencies, there is an awful lot of scams in this area. New tokens are created every day and quickly rug pulled, which means their value falls almost instantly to zero.