Steneum is a bitcoin lending platform announced in late November 2017. Find out if it’s a scam or a legitimate opportunity today in our review.
What Is Steneum?
Steneum is a new token that makes nearly identical promises as Bitconnect, which is the crypto community’s most notorious scam. Specifically, Steneum promises to pay users 1% ROI per day, every day, with no work or risk involved whatsoever.
Right away, that should tell you that Steneum is probably a scam.
The ICO for Steneum began on December 1. 5 million coins are on sale during the ICO, priced at $0.15 each. The token sale quickly crashed the website, and the website remains down as of December 1 – so clearly, there’s been a lot of interest in the new lending platform (see our update below explaining how the ICO has now been delayed to December 5).
Ultimately, Steneum doesn’t try to differentiate itself from Hextra, Regalcoin, Bitconnect, and other lending scams in the crypto community. All of these tokens make the same ridiculous promises: if you give them a bunch of money, then they’ll magically turn it into more money. In reality, all of these platforms are variations on a Ponzi scheme or pyramid scheme. The returns of older investors are paid by the deposits of new investors until the scheme inevitably collapses.
Let’s take a closer look at how Steneum works to see if it’s a complete scam – or a legitimate business opportunity.
How Does Steneum Work?
Steneum doesn’t seem to offer any products or services. Instead, the company just has a lending platform. That lending platform, like Bitconnect, will pay you 1% returns per day.
Obviously, returns of 1% per day are unheard of in the investment world. They simply don’t exist in the legal world of investing. When you see someone promising returns of 1% per day, it means you’re participating in an illegal investment scheme – like a Ponzi scheme.
To participate in this investing scheme, you’ll need to give Steneum a bunch of money. The company requires you to lend 1000 tokens, then receive 1000 tokens back at some point in the future. Along the way, your 1% daily interest returns will be deposited directly into your wallet.
Like Bitconnect, it’s unclear who you’re lending to, or who’s willing to pay such enormous APRs for a loan. Payday loan companies offer way better rates.
As far as we can tell, Steneum has no product, service, or source of income. Like Bitconnect, most of the income will come from the deposits of new members.
The Steneum ICO
5 million Steneum tokens will be sold in 5 rounds. The first round will be priced at $0.15 USD apiece, with the price rising each round. Here’s how the prices will break down:
- First Round (0 to 1 Million Coins): $0.15
- Second Round (1 to 2 Million Coins): $0.20
- Third Round (2 to 3 Million Coins): $0.30
- Fourth Round (3 to 4 Million Coins): $0.40
- Fifth Round (4 to 5 Million Coins): $0.50
The token sale is scheduled from December 1 to January 1. The coin is listed under the symbol STN, with a maximum supply of 20 million. Out of the total supply, 5 million is dedicated to the token sale, with 1 million tokens set for bounties. It’s unclear where the remaining 14 million tokens are going – although like with Bitconnect, they’re likely in control of a small founding team.
Officially, 14 million coins have been made available through mining, with a PoW block reward of 25 STN and block intervals of 300 seconds. However, since Steneum hasn’t published any blockchain information or open source data online, it’s tough to verify any of these claims. We don’t even know if the maximum supply is really 20 million, or if some number of coins have been pre-mined.
Steneum also hasn’t released their mining wallet or Windows wallet. The company claims that they’ll publish this once the ICO is complete.
Who’s Behind Steneum?
Steneum lists a location in West Java, Indonesia. Aside from that, the founders haven’t released any information about themselves, their team, or why they’re qualified to handle your investment.
Steneum has a small roadmap posted on their official website. The exchange, wallet, and mining software will launch in January, while the lending program will launch in February 2018. Steneum also claims to be preparing to partner with a global cryptocurrency exchange by February, although we can find no evidence that’s true.
Update: ICO Postponed Until December 5
The Steneum (STN) ICO was scheduled to begin on December 1, 2017.
Early in the day on December 1, the Steneum.com website crashed. Investors were left confused. Many investors are currently unable to deposit or withdraw money from the platform.
Initially, Steneum issued an announcement through their Facebook page apologizing for the trouble and claiming they would try to fix it.
Then, early in the morning on December 2 (Indonesia time), the company announced that it was officially postponing the ICO until December 5, 2017.
That’s not a good start for a company that many people have already labeled as a scam.
Steneum appears to be a scam – similar to many other crypto lending platforms on the market today. These scams promise enormous returns for investors. Investors are lured in with stories from Bitconnect, which saw the price rise from $0.50 during the ICO to $300 today (despite the fact that price, trading, and supply are all controlled by an anonymous group of founders on a single exchange).
At best, Steneum is an investment scheme that will take off like Regalcoin and Bitconnect. At worst, it will go the way of Hextra, Davor, and other scammy coins that promised to give investors millions of dollars – only to completely fail to deliver.