Tower Staking, a platform that ostensibly provides staking services, lacks openness about ownership and leadership data on its website. Tower Staking’s website domain, towerstaking.com, was registered privately on July 18, 2023.
Despite attempting to portray authenticity by offering a business address in Iceland, investigations have revealed that this address is used by a number of virtual address service providers, casting doubt on Tower Staking’s actual physical presence in Iceland.
The lack of regulation or the presence of poor regulation is a huge red flag. It means Tower Staking is a scam and most likely, an illegal operation.
Companies offering investment services or opportunities without having a license can vanish without leaving a trace. Furthermore, the lack of a regulatory license allows them to get away with it and face no legal consequences.
That’s why it’s vital for you to always check a company’s regulation status as well as its license information. The presence of a license allows consumers to reach out to an authority if something goes wrong.
In the case of Tower Staking, victims have nowhere to go due to the absence of a watchdog or license.
You should ask yourself the following questions when you come across a new investment firm or opportunity:
- Does the investment provider maintain transparency about its CEO?
- Do they have a license from a renowned regulatory authority?
- If the need arises, can I reach out to an authority to report this company as a scam?
Tower Staking has no retailable items or services and relies primarily on affiliate membership for marketing purposes. This investigation digs into Tower Staking’s compensation plan and recruitment-based structure, offering light on its investment strategy and referral commission scheme.
Tower Staking does not provide any products or services for retail purchase or consumption. Instead, its revenue model is centered on recruiting affiliates to promote its affiliate membership.
Tower Staking’s compensation structure depends on affiliates investing in cryptocurrency, with passive returns based on the investment tier they select. The plan is divided into four levels: Advance, Pro, Full Pro, and Premium, with each offering varying withdrawal frequency and monthly returns dependent on the investment amount.
|Monthly Returns Range
|$250 – $1000
|20% – 30%
|$1000 – $4999
|30% – 35%
|$5000 or more
|35% – 40%
|$250 – $5000 or more
|40% – 60%
Tower Staking incentivizes recruitment with referral commissions, which are paid out in cryptocurrency for investments made by recruited affiliates. These commissions are allocated down two levels of recruitment using a unilevel framework.
- Level 1 (Personally Recruited Affiliates): Affiliates earn 20% on investments made by personally recruited affiliates.
- Level 2: Affiliates earn 10% profit on investments made by affiliates acquired through direct referrals.
Becoming a Tower Staking affiliate is free, allowing anyone to join in the affiliate program with no initial cash investment. However, in order to take advantage of the full revenue possibilities, affiliates must invest a minimum of $250 in bitcoin as requested by Tower Staking, making them eligible for passive returns and referral commissions.
Tower Staking’s business model is based on recruiting affiliates who invest in bitcoin, promising passive profits and referral commissions, but not providing any real products or services for retail sale or consumption.
However, it’s worth noting that many scammers disable their payment channels before shutting down their operations.
They might give you multiple reasons including:
- A technical error
- A glitch in their system
- Banking issues
- A “hacking attack”
And many others.
But in 9/10 cases, the scammers actually stop making payments and keep the money to themselves. Hence, the payment methods we discussed here might not work.
If you want to get your money back from a scammer, you’d need to file a chargeback.
When it comes to scammers, you should only measure the quality of their customer service if they respond to your complaint.
In the beginning, scammers tend to remain very accessible.
This means their representatives will keep calling you until you invest with them. Furthermore, they will act friendly and make it seem as if you’re one of their most valuable consumers.
However, they do all this just to win your trust.
Scammers understand that in order to convince someone to give them a large sum, they will need to seem like a friend.
Nevertheless, when you have invested a considerable amount of money and need to get it back, their customer support will become inaccessible.
All of a sudden, their numbers would either stop responding or become unavailable.
Still, they might remain accessible to convince you to invest further. Also, they might begin by making a few excuses regarding your payment.
However, in the end, the customer support won’t resolve your issues and become increasingly unavailable.
It’s worth noting that many scammers tend to purchase fake reviews. Buying fake reviews has become extremely easy and it’s a multi-million dollar industry.
Scammers like Tower Staking tend to purchase fake reviews for their online profiles to make themselves seem more credible.
TIME Magazine investigated the fake review industry and estimated it to be worth more than $150 million. Certainly, there are a ton of scammers who want to seem legitimate and a bunch of fake reviews is the most effective way to do so.
That’s why you shouldn’t trust Tower Staking reviews easily.
It’s easy to identify fake reviews as well. You should look out for 5-star reviews that are posted by temporary accounts (profiles which only posted 1 or 2 reviews on the platform). Also, you should see if the positive reviews share any detailed information about their experience with the firm or not.
In the case of Tower Staking, chances are, you wouldn’t find many legitimate reviews.
Another prominent way scammers like Tower Staking enhance their credibility is by burying negative reviews and complaints under a lot of fake reviews.
This way, when you’ll look up “Tower Staking reviews”, you might not find many complaints. Or, you might find them buried within numerous reviews praising Tower Staking.
You should always look out for consumer complaints. In the case of Tower Staking, the most common complaints I found were about:
- Poor customer support
- Delays in payments
- High fees and charges
- Lack of transparency regarding their leadership team
- Aggressive sales staff
Do you have a similar complaint about Tower Staking? You can share your complaint in the comment section or submit an anonymous tip.
Tower Staking does not provide reliable proof to substantiate the existence of external revenue streams. The lack of provable revenue streams raises worries about the company model’s long-term viability. Furthermore, claimed returns of up to 60% per month contradict logic, calling into question the need for new investments if such profits could be continuously achieved.
At the moment, Tower Staking looks to rely primarily on fresh affiliate investments. The reliance on incoming cash to meet withdrawal requests suggests Ponzi scheme features. As with many MLM Ponzi schemes, once recruiting plateaus, the influx of new investments slows, resulting in a revenue drop.
As a result, without sustainable returns, Tower Staking is likely to collapse, causing large financial losses for the majority of participants.
Tower Staking is an unregulated entity. Although they might fall under the jurisdiction of a watchdog, they don’t have the license to offer financial services to consumers.
The lack of a license means they are not answerable to any regulatory authority. As a result, the people behind Tower Staking can run away with your money without any prior notice. You should be extremely cautious when dealing with an unregulated service provider.
The absence of a watchdog also means you cannot report to them to anyone.
Also, due to the absence of specific regulations, there is no provision protecting you from the insolvency of this entity. If they go bankrupt, you won’t be able to do anything about it.
Can You Trust Tower Staking?
All the evidence suggests that Tower Staking is a scam. If you have lost money to them, there is still a chance you can get it back.
To recover your funds, you’d need to file a chargeback.
Is Tower Staking a scam?
Can I withdraw money from Tower Staking?
Where is Tower Staking Located?
How do I get my money back from Tower Staking?
Launch a website/app with a generic name
A website or app with a generic name allows scammers to hide behind common Google search results. Marketing such names is easier as well.
Pay influencers & social media pages to promote the scheme
By getting influencers and social media pages to promote their brand, scammers make their shady company seem more legit than it actually is.
Send thousands of emails and make cold calls to potential victims
It’s common for scammers to buy the contact details of people and spam them through email, phone calls, social media messages and other means.
Make victims feel safe through “small wins”
Such small wins usually include a few payments transferred into the victim’s account. This makes them seem more legitimate.
Convince victims into investing large sums of money
Due to the small wins, the victim is now convinced that the company is legit. Now, the scammers try to manipulate the victim into giving them larger sums.
Disable withdrawals & take down the website/app
Once the scammers have recieved a signicant sum, they either stop responding or cite a technical error to freeze their victims’ funds.
Repeat the cycle
After making the money, the scam will shut down and the people running it will launch another and repeat the cycle.