Wallfair Crypto Update 2022: Scams and illegal practices – Ponzi much?

Wallfair has been a controversial crypto project for many cryptocurrency enthusiasts. Despite having an exciting story about their product and vision, it turned out that everything was overhyped with empty promises. In a previous and initial first article, we spoke about how Wallfair scammed their initial investors which they called “family and friends” by diluting their capital. We later had an updated article after a few months to follow up on the project and it turned out that many false promises were happening. From changing the board of directors to rebranding their token…Everything was a mess. In this article, we expose further illegal practices and deceptions that were done by Wallfair crypto and its CEO Sebastian Diemer.

WFAIR Price DUMPS Heavily

When investors first decided to lock up their capital and invest in this project, the people behind Wallfair clearly misled investors into thinking that prices were going to rise as the project progresses. On the other hand, prices rose briefly for 1 month (probably to hype the token DEX launch) before dumping. Guess who benefited from buying low and selling back high: the people behind Wallfair, of course.

Let’s remove all emotions and simply look at the chart below.

Does this chart in figure 1 portray a decent crypto project? WFAIR price today is sitting around $0.002, or 90% lower than what investors paid initially. Whatever excuse there is should not be real. The tokens were dumped hard, even if we consider the bearish outlook of the crypto market in general. In fact, the crypto market dumped on average 50% since November 2021. If we give the benefit of the doubt, prices should be much higher if the only negative fundamental change is the crypto sentiment. Since this is not the case and prices are more than 90% lower, there must be other reasons. Read on to see what’s up.

Low Community Engagement and Fake Followers

It is no surprise that new startup companies often have low engagement. It is very hard to bring the masses towards a striving crypto project. On the other hand, people who leave the company behind often have reasons. Surprisingly, Wallfair’s Telegram group boasts more than 33,300 members.

Looking at that inspiring number, one must think that this project is doing amazing and that their products are being already used. Who wouldn’t start using their betting platform? Let’s say 5% only are using their services, we would see an engagement of more than 1,500 members, betting on the platform already that has many events on its homepage. Was that the case? Well, not really.

If you go into their main web app, you’ll see many events already being posted on their homepage…cool! However, try clicking on individual events and see who is interacting. You’ll notice the exact same 1-2 users in each posting…not cool! It’s like no one is using the platform, barely a few users are responsible for creating fake events and creating fake activities. Thanks, CaptainCrypto!

Changing Company Registration

This point is super sketchy. In a previous article, we spoke about how the Wallfair company started and was marketed as a German Startup registered in Germany. Then they decided to suddenly change the country of incorporation from Germany all the way to the Channel Islands. Well, today is another story. Our friends decided to back out from Europe and head all the way to the Caribbean Island in Curaçao. Changing the registration of the company should never occur if proper planning was in place. This happened not once, but twice now!

Funny enough, they kept a German number along with the contact details. Because hey, why not?

The “Team” section got removed

Previously, Wallfair prided itself on the team behind the project. They had a dedicated section where everyone flashed their picture, along with their LinkedIn handles. Today, this section no longer exists. People cannot see any trace of the people behind the project anymore. Why is that? Why hide the founders and the team, especially in these “glorious” times where they are proud of their product and big followers?

The sad part is that they even forgot to remove the title of the “Team” section which is called “Who?”. It now redirects the user to an empty section on their homepage located between the “News” and the “When” section.

The only remaining trace of a person on the Wallfair team today is its CEO Sebastian Diemer. It is not even visible anywhere on the website, but scrolling back to their blog posts from back in October 2021, we can see a paid interview with him as a CEO, talking about how WFAIR price is going to reach 8 euros while talking about cliché inspirational stories.

Illegal “Cookies” banner on the Web App

It is well known that after 2016, the EU placed many regulations regarding data protection for users. This includes using cookies and how to place banners that ask for consent. Wallfair company apparently doesn’t know that it is illegal under the GDPR and e-privacy regulations to pre-tick the cookies boxes. If you go to their website, you will notice those boxes pre-ticked.

Deceiving Profit Calculators

If you go to the newly available “staking” page, you will see a big profit calculator, which is “king of illegal”. This is because they usually imply a guaranteed profit. Staking cryptocurrencies should be taken with extreme caution, especially when staking a highly volatile cryptocurrency. At least, they could’ve added a disclaimer. The website is all rosy and guarantees profits without any risks! Yikes.

Anyone would want to stake for juicy returns. On the other hand, staking is the action of giving liquidity to a certain project. With all the red flags that Wallfair presents, how can anyone provide more money to a sinking ship? After the many rounds of investments, and a token that dumped more than 90%, how can they juice more money? With “staking” of course! Give us your money, we’ll do some “magic” and you’ll earn more. Sounds familiar? Ponzi!

Conclusion

The concept behind Wallfair is a great one. The betting industry is a big one, and getting a piece of that pie would be highly rewarding. On the other hand, the approach to this concept and the team behind Wallfair proved incapable of running a business. From cheating their “friends and family”, to rebranding, postponing their roadmap, hiding teams, and changing company registration twice…it seems that the project is not going anywhere. We of course remain on the lookout for future developments in the project…hey, we’d be more than happy to see some good news for once, but so far, it’s all going downhill.