Thursday, 29 March 2018

Bunny Token scam

I was watching YouTube a couple of days ago when an ad video promoting BunnyToken emerged before the actual video started. The content of the ad video was so scammy that I had to dig out more information about the scheme. I was also baffled if this actually was a scam advertising itself boldly on YouTube.

What is Bunny Token

Bunny Token is marketing itself as the mainstream payment system of the future for adult entertainment industry, providing anonymous and low cost transactions. Considering the somewhat direct approach to the subject, they strangely seem to have forgotten to put the word "adult" before "entertainment industry" on their website.

Bunny Token is based on Ethereum blockchain technology. The Initial Sale of Bunny Tokens launched on the 13th of March, 2018. The sale will continue until the 25th of May, 2018. There is going to be 1 billion tokens issued.

According to the company behind Bunny Token is Bunny Software Ltd. which is registered in Seychelles. The website domain has been registered 6 February 2018 by a third party to hide the identity of the actual company/person. The domain has been set to expire already on 6 February 2019 so I guess the registrant doesn't really believe in the business model yet.

The ad

Quoting the ad: 
"The BunnyToken is the cryptocurrency, which will be used by the 103 billion dollar and consistently expanding industry."
– Now, I'm not denying the continuously growing number of wankers, but making such promises of BunnyToken being used by the whole industry is pretty far fetched – especially when prohibited to use in the U.S.A, the mecca of porn.

BunnyToken's terms and conditions: 
Bunny Tokens will not be available for sale to the citizens or residents of the USA, People’s Republic of China, Republic of Korea, Singapore or any other country where where transactions in respect of, or with use of, digital tokens fall under the restrictive regulations or require from company to be registered or licensed with any applicable governmental authorities.

The ad continues:
"The industry is one of the biggest in the world and even a small percentage of its market capital will boost the value of Bunny and lead it to the top." 

– Yeah, sure.

Screenshot from the ad video.

"Starting from the first day of pre-initial token sale, the price of the token will increase 1 percent every single day. This increase will continue until the last day of the initial token sale."
– Well, there's a difference between price and value. You can set whatever price you like, but it isn't necessarily the value.

"Only one billion tokens will be issued. Any unsold tokens will be burned. This will instantly increase the value of remaining tokens."
– Erm, if you manage to sell only one token, how come burning 99.999.999 tokens increase the value of the remaining one?

"Referral program"
– Yes, there's also referral program to help to spread the disease.

The website and the red flags

At first glance everything seems believable. There's a link to a white paper, nice charts, roadmap and even some people from porn industry introduced as "The BunnyToken Advisors". But a closer look at the site reveals some alarming details.

There's "Expert Reviews" section with a showcase of logos of many cryptocurrency related websites. However, for instance the logos of Cointelegraph and Merkle have been linked to a press release published by Bunny Token. I don't think you can label a press release as an expert review.

The white paper of Bunny Token is 42 pages long. I was interested to see if it revealed any porn websites already partnered with Bunny Token, because without partners this porn coin would be utterly pointless. And there it was, a list of porn sites already partnered!

At least some of those webpages were registered by a registrant based in the U.S., which is strange considering that Bunny Token isn't going to be available in the U.S. didn't even seem to be operational anymore because there wasn't any means of payment available for joining the site.

However, the strangest and the most alarming part is the staff. "Bunny Software has brought together a team of experts with backgrounds in the entertainment industry business, payment systems and blockchain specialist who will make BunnyToken the mainstream digital currency for the entertainment industry." And yes, there is an impressive looking gallery of professionals devoted to Bunny Token's cause. But taking a more thorough look at them reveals that they don't seem to exist outside Bunny Token's website.

Click to enlarge.

It seems evident that if not all then at least majority of them are not real persons. I tried to find several of them on LinkedIn without success. However, I did manage to find Facebook profile pages of almost everyone of the staff – 17 out of those 21 to be precise. Again, everything seemed to be alright at first, but then I noticed some alarming similarities among each and everyone of them had on their Facebook page.

Everyone of the people I found on Facebook had only one picture of him/her. The posts they have made are pretty nonsensical; stock photos, photos of shoes, a black dude, a weapon, puppy or a kitten etc. They seem to post on their Facebook walls very seldomly. Remarkably all these people have been posting with identical date stamps – like someone was just making up stuff for a certain date for several profiles. They all have latest posts dated 9, 8 or 7 of March. Before that they all just happened to have longer period of not posting a thing. On February 23–24 they were all active and posted something. Coincidental? – No. Much fake? – Yes.

Here's a list and links of all those Facebook profiles I managed to find: 

Alexander Maslov
Vasilisa Yakubo
Andrei Kazarin
Wiebe Van Veen
Ruben Klassen
Ove Skovgaard
Spas Danilov
Nikita Polyakov
Filip Bager
Dori Rubinshteyn
Petter Berg
Anika Dresdner
Garry Stanford
Kristine Lang
Kalla Baars
Monika Sawyer
Maghan Choi
Tamera Brooks
– Although it's obvious without saying, I'd like to point out that the people in any of the pictures of those profiles have likely nothing to do with the scam except Maslov, Yakubo and Kazarin who all have featured in Bunny's marketing vids. However, I don't think they are using their real names while scamming.

So all in all I think there are enough red flags to conclude that Bunny Token shouldn't be trusted. It's a scam, and yes, it's advertised on YouTube.