The ESPORTS.COM Fairytale
Once upon a time, that’s how most fairytales start. The German ESPORTS.COM fairytale started out as an ambitious concept engineered by the gaming & sports betting veteran Uwe LENHOFF and his friends. Benjamin FÖCKERSBERGER and his friend Philipp GEPPERT were obviously installed as front people to make the road show for crypto-crazy investors. The goal was simple: conduct an ICO, sell eSports Reward Token (ERT) to investors and raise some USD 20 million.
According to an article published by the German “Hessen Depesche” in February 2018, the German MLM artist Michael THOMALE was part of the team from the early beginning. For the start, they bought the domain “esports.com” for a seven-figure sum which was the only real asset back then. The story told to potential ICO investors to make ESPORTS.COM the largest, and most successful eSport platform worldwide.
Only two months later, the fairy dust was blown away. Benjamin FÖCKERSBERGER was ousted, the ESPORTS.COM show is run now by Michael BRODA and Uwe LENHOFF (read this article) with ESPORTS.COM as a crucial part of a Crypto-MLM system. The ICO show is over anyway and was an impressive failure.
The “New” ERT, 8Crypt and the MLM Distribution
The much-hyped eSports Reward Token (ERT) lost one of the core features sold to investors: it cannot be used for sports bets which were the most important value driver in the ESPORTS.COM. One could argue that investors were misled with public statements, white paper and company presentations.
Instead, ERTs can be used (in the future) for crypto-mining as ESPORTS.COM obviously plans to introduce gaming computes that mine Ether (ETH). Furthermore, ERTs can be used (in the future) to invest “in eSports.com approved ICO projects”. Seriously? I mean, they didn’t manage to make their own ICO a success, misled investors and want now be seen as ICO investment experts. I leave it up to the reader to judge that.
Anyway, the ERT has more or less an intrinsic value of ZERO. But maybe, the NEXUS GLOBAL MLM system may help the ERT to find its way to investors?
It looks exactly as if this would be the plan. From the very beginning of the ICO ESPORTS.COM cooperated with the cryptographic payment wallet 8Crypt (www.8crypt.com). As explained on its website, ESPORTS.COM accounts have to be linked with 8Crypto to see the token in the ESPORTS.COM account.
The NEXUS GLOBAL Crypto-MLM Distribution
Risk warning: crypto-MLM systems are at least HYIP schemes and most of them are Ponzi schemes. NEXUS GLOBAL looks like a Ponzi scheme as it sells its “products” to naive investors who are usually no crypto-experts at terms and conditions that are completely non-transpartent.
Additionally, we learned that the NEXUS GLOBAL guys teamed up with the Indian crypto-entrepreneur Amit BHARDWAJ who was arrested yesterday (April 4, 2018) for an alleged crypto-MLM scam (read this report) and our telegram here.
Is there any chance we investors can go-to someone to recover our money. Please help. Can you have a small segment with us investors, so that we can uplink to someone who can help us recover our some perecnt of money@PMOIndia @SushmaSwaraj
This was our hard earned money.
— Nikhil Jain (@Nikhil031089) 5 April 2018
Crytpo-MLMs are definitely worse than ICO scams. The latter are at least discussed in the public, exposed to critical forum members (e.g. in Bitcointalk), rated on ICO platforms etc. The overwhelming majority of ICO investors are familiar with cryptocurrencies and crypto-investments. That’s completely different with Crypto-MLM schemes. They are distributed to naive and inexperienced investors on a private basis (closed Facebook groups, private events etc.). They are intransparent and mostly illegal.
NEXUS GLOBAL – A Sales Channel for VELTYCO Brands?
Michael THOMALE is currently setting up the Crypto-MLM scheme NEXUS GLOBAL together with his Partner Christian Michel SCHEIBENER, another German MLM artist, to sell ESPORTS.COM and other products associated with LENHOFF‘s VELTYCO to MLM investors across the globe. The concept is simple:
- investors buy into the NEXUS GLOBAL scheme within a pyramid system with sponsors and subordinated investors
- MLM promoters (sponsors) receive a commission from every investment (product sale) in their line, i.e. the NEXUS GLOBAL System consumes a large chunk of the investments (product sales);
- the remaining net proceeds (after payment of commissions) will be invested in products (e.g. ESPORTS.COM, Bet90, Tradologic etc.)
- the 8Crypt wallet will be used for payment transactions (currently, 8Crypto cannot receive or send real money, no debit card available)
Up until today, the NEXUS GLOBAL guys have not revealed details on the products and the investment portfolio. Furthermore, neither VELTYCO nor any of its subsidiaries have disclosed any details on the agreements they have with NEXUS GLOBAL. It’s a black box. Currently, the only products shown on NEXUS GLOBAL’s website are crypto-mining packages.
We are deeply impressed by the global dimension the NEXUS GLOBAL scheme aims at. Nevertheless, we are of the opinion that it will almost certainly collapse. Investors should be very careful.
Dear readers and investors: we would be very grateful if you continue to deliver information on the case. Thank you!