ElonBank Token Review: Legit or Scam Coin?

Elonbank token has been gaining popularity since its initial launch some 50 or fewer days ago. And it’s my understanding a lot of things (both positive and negative) have been said about the token.

The truth is that tokens like opinions, Sphere finance, and Titano, divide opinions. Some people say it’s an unsustainable scam, others think it’s the project that will finally make them rich.  This sort of makes the token rather hard to understand, especially if you are new to trading meme coins.  

This Elonbank review is an attempt to demystify the token. In this review, we will be checking whether Elonbank token is legit or whether it is another dressed-up scam.

So, if you are curious about  Elonbank, or you are a potential investor just getting to know about the token, or maybe you are already holding Elonbank token (this demography is usually very sensitive. Try to read the review with an open mind). I desire to make new investors (even old investors) understand what they are getting into, so I try to explain crypto in an uncomplicated manner by breaking down crypto terms or whatever developers are trying to say in basic English. Before we get into the main review, however, we first need to establish an understanding.

“I’m not a banker or a financial expert, I don’t even consider myself a crypto “expert” (whatever that means). I will not be held responsible for your financial decision. Crypto investments, especially meme coin investments are high-risk, high-reward ventures. This article is just a guide, consider it alternative entertainment.”

With that said, let’s go!

What is ElonBank Token

According to coinmarketcap.com, ” ElonBank is a groundbreaking financial protocol that includes mechanisms for auto-staking, auto-compounding, and auto-liquidity. You will receive the highest APY (400,977%) in the market simply by purchasing and holding ElonBank.

ElonBank offers automated staking and compounding, as well as the APY of 400,977% for the first 12 months. The following critical aspects to support this interest rate and consistent financial development for the investors”

I believe the above quote is easy to understand. If you are a total newbie. I’ll be explaining some of these strange concepts in the coming paragraphs. 

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Elon Bank’s Website

Elon Bank’s website is very well done. You can tell easily that, it was put together by a professional. The description begins with the below statement. 

“Revolutionary financial protocol operating in BSC with Auto-staking, Auto-Compounding, and Auto-Liquidity mechanisms.”

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Now, if you have a hard time understanding what terms like Auto-staking, auto-compounding means. The below explanation should put you in the clear.

Auto Staking

For you to understand Auto staking, you first have to know what staking is. Staking in crypto is the process of locking up (for a particular period) crypto holdings to obtain rewards or earn interest. Usually, staking is seen as another option to earn when investing in Defi projects. However, with Titano coin and its auto staking feature, that option has been removed. From the second you purchase Titano, you immediately earn Staking Rewards.

Auto Compounding

Compounding is the process in which an asset’s earnings (in this case titano’s earnings), from either capital gain or interest, are reinvested to generate additional earnings over time. What this means is simple. Gains from auto-staking titano are automatically reinvested to generate even more rewards for investors.

The token seems to have a utility. According to the developers, Elonbank has a wallet it calls the APY Wallet which offers a unique way of checking investors’ tokens balance and Reflections.

Again, ElonBank claims it offers a fixed 400,977%. This is where I have a problem with ElonBank. The fixed APY of 400,977% is outrageous and frankly unsustainable. I think the 400,977% is a marketing ploy to attract and soak investors in.

ElonBank Tokenomics and Audit Report

In the tokenomics, we get to learn that
$Elonbank is a BEP-20 token with an elastic supply that rewards holders using a positive rebase formula. Rebase? If my experience as a crypto writer has taught me one thing, that thing should be the fact that rebase tokens should be treated as time bombs. In case you do not know what a rebase token is. With rebase, tokens charts don’t mean anything in the grand scheme of things. The only things that matters are the market capitalization and the total supply of the coin.

Investors are charged 14% of their investment on buying ElonBank. This is how it is broken down. 5% is sent to a wallet that is called EBR. 2.5% is sent to the treasury (EBT). While 4% adds to the liquidity pool. The remaining 2.5% is burnt.

Whenever an investor sells, he/she is charged 16%. This is how  16% tax is broken down. 5% is sent to a wallet that is called EBR. 4.5% is sent to the treasury (EBT). While 4% adds to the liquidity pool. The remaining 2.5% is burnt.

These taxes are high. But, you can excuse the token for that because the whole point behind it is built around taxing investors to reward other investors that are ‘holding’.

It is important to note that Elonbank has been audited by Interfi. Here’s the summary of the audit, according to Interfi.

The smart contract was analyzed mainly for common smart contract vulnerabilities, exploits, and manipulation hacks. According to the smart contract audit:
v ElonBank’s solidity source code has LOW-RISK SEVERITY v ElonBank’s smart contract has an ACTIVE OWNERSHIP v ElonBank’s centralization risk correlated to the active owner is MEDIUM v Important owner privileges – BLACKLIST, AUTO REBASE, SET LP, WITHDRAW ALL TO TREASURY v ElonBank’s smart contract utilizes REBASE. With rebase, the circulating token supply adjusts (increases or decreases) automatically or manually according to set parameters.
Be aware that smart contracts deployed on the blockchain aren’t resistant to internal exploit, external vulnerability, or hack. For a detailed understanding of risk severity, source code vulnerability, exploitability, and audit disclaimer, kindly refer to the audit.”

ElonBank on Tokensniffer.com

Tokensniffer rates ElonBank’s contract a satisfactory 65%.  This is an above-average score.  This in my opinion is good. However,  Tokensniffer highlights that the ElonBank contract source is littered with negatives. One of these negative is that ElonBank source code contains a function that can modify the transaction fee. Yes, I am aware this is important to how the token operates.
However, it is risky because the developer could stop those who want to sell from selling at any time.  Also, the contract is not renounced. This could either be a good thing or a bad thing, it depends on how you look at it. But most of the time, it is a bad thing.  A contract being renounced has its benefits, however, the ElonBank’s contract not being renounced may allow the creator or current owner to modify contract behavior (for example: disable selling, change fees, or mint new tokens). Another negative is that the liquidity is unlocked. The positives around sphere finance are that there are no potentially toxic whales in its ecosystem and the token doesn’t seem to have liquidity issues.

Developers Behind Elonbank

The developers of ElonBank are unknown. Some people will want to pretend that this is not a big deal by citing Shiba Inu and Bitcoin. But my dear, with the control developers, have on this token, the nature of this coin as a “mitigated” rebase token, and its Ponzi-like tokenomics? This is a big deal and a red flag.

What Investors are saying about ElonBank Token

Here are some of the comments of investors sources through coinmarket cap and Twitter.

Conclusion

ElonBank’s  400,970 fixed APY is not sustainable. I do not know if the team is currently thinking about changing the fixed APY like Titano is trying to do but, this crazy APY will surely crash after some time. In that sense, ElonBank finance is a scam that got investors in under pretense and hyper marketing. If however you still want to invest in elonbank, you need to trust the developers (you do not know) completely. This review is not to discourage you from investing in this token, it was written to give you a clear idea of what you investing in from an objective third-party point of view. If you decide to invest in this ElonBank. Please invest what you can afford to lose.





2 Comments

  1. This project is SCAM

    I purchased the said elonbank.io token and followed their telegram group, after a few weeks, I received an offer for an airdrop, which required me to connect my wallet to receive the airdrop, which I did, lo and behold after that all my elonbank.io token was wiped.

    I contacted them on telegram and they said it is a scam. Upon further investigation, I found out that the creators of this coin created a different duplicate website and lure the investors, to connect their wallet for airdrop and in return wipe their coin.

    I think you should do extensive research on the project you are bringing to the platform, because you can be seen as an accomplice in the scam.
    My whole investment is gone, thanks to you and you can blame me too.
    Alexander

    • “ElonBank’s 400,970 fixed APY is not sustainable. I do not know if the team is currently thinking about changing the fixed APY like Titano is trying to do but, this crazy APY will surely crash after some time. In that sense, ElonBank finance is a scam that got investors in under pretense and hyper marketing”

      what part of the conclusion didn’t you understand? He said it was a scam. What are you on about?

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