More than 900,000% annual yield, that’s the promise of this new cryptographic protocol. An unsustainable promise, but worthy of the attention of the JDN, as it illustrates the bad practices of a minority that harms the majority.
Wizards or charlatans? The cryptographic protocol Yieldzard, whose symbol is a bespectacled wizard, was launched on April 7, 2022 and offers investors a return of 2.53% per day, or 918,757.58% in one year. Unheard of on all cryptographic protocols combined. Despite its tantalizing proposition, the Yieldzard does not charm many people: on June 2, only $ 947 of the associated token, the YLZ, was traded. 664 investors have invested in the platform since its launch. The 10th largest holder owns just $ 124 of YLZ according to BscScan.
Such a high yield actually scares the most experienced investors. The JDN gathered the opinion of two of them. “The protocol does not exist, it has no function”, says Frédéric Montagnon, founder of Arianee, the NFT platform. “There is nothing mathematical or economic behind it,” he adds. Laurent Perello, advisor to Tron DAO, the decentralized autonomous organization of the Tron blockchain, corroborates his remarks indicating that “it is based on nothing”. He points out the inconsistency of the protocol’s functioning: when an investor buys his token, 12% of the commissions are charged; when an investor sells their token, an 18% fee is charged. Without appeal, “it is a signal that we must flee”.
Another clue, our two investors consider the Yieldzard roadmap empty: one of the objectives is the publication of articles on the protocol by Yahoo or Marketwatch … A cloud of smoke that hides a trick. As if that weren’t enough, it is not possible to find the location of the headquarters, if any, and the identity of the team, led by a certain Paul, is unknown. “Everything is done in the shadows”, sums up Laurent Perello.
“They exploit the greed of hyper speculators”
In an attempt to find out more, the JDN sent a message to the Yieldzard Protocol Telegram account. A profile that was deleted a few days later. Simple coincidence? The prosecution evidence is piling up against Yieldzard. The two experts are unanimous, it is a scam in which gullible investors fall. “They exploit the greed of hyper-speculators”, analyzes Laurent Perello. “It’s a Ponzi”, Frédéric Montagnon approves.
Dishonest protocols, promoted by “pseudo-influencers”, abound on Binance according to our interlocutors. Problem: These scams harm other cryptocurrency players. Pro-regulators use them as an argument when their weight in the cryptocurrency market is minimal. Yieldzard is listed on CoinMarketCap (ranked 6524th as of June 2). Misinformed investors may think this is a sign of the project’s reliability. This is not the case and this applies to all crypto projects. “The data may be false because it was transmitted by the founders”, explains Laurent Perello, also recalled by a disclaimer on the Yieldzard CoinMarketCap page.
In summary, 918,757.58% APY is the equivalent of an abracadabra and it would not be surprising if within days the Yieldzard project vanishes taking with it the $ 25,000 placed by unwary investors. Promising high fixed returns is simply not feasible, as the tragic fate of Anchor Protocol shows.