A new money making opportunity by the name The Paper Wave is slowly making waves in the Kenyan market.
I first came across it on X-tian Dela’s Whatsapp statuses on Tuesday morning and got interested because he described it as the Kenyan Bitcoin.
I’m a huge crypto enthusiast, you can check my YouTube Channel where I break down cryptocurrencies and advise people how to make wise investments on the future of money.
So I was naturally inclined to dig deeper into The Paper Wave to find out how it really works.
Guess what, I wasn’t impressed.
Here are my findings.
Paper Wave is a trading platform where you trade system coins, Stellar Coins with peers. Besides, it’s a multilevel marketing platform which compensates you for recruiting members. You can also play Spin the Wheel games and win cash prices.
Paper Wave is risky, but can potentially make you a lot of money if you’re influential or if you join early. Although it claims to offer cryptocurrency trading features, it does not. Rather it excels in trading system coins and promising a guaranteed value growth for investors money.
If you are interested, join early, invest money you don’t critically need now and know how you can recruit members to the platform.
According to the website, The Paper Wave is a cryptocurrency platform
- Where you can trade system coins known as Stellar coins and make profits fast
- With a referral program to reward multi level marketing
- Which provides different types of spins based on amount staked
- Where you can trade Bitcoin, DogeCoin Tron and others with peers
- Where you can learn about cryptocurrencies, how to buy and sell and other good trading practices.
At least that’s how the founders define it.
That’s a spectacular list of features, especially on the part where you can trade other cryptocurrencies.
Why? Because you need millions of dollars to buy or build a system that trades multiple cryptocurrencies. If this is actually true then this is the darn thing that will put Kenya on the crypto market.
I signed up, paid the activation fee; Ksh 500 and logged into my account.
To join the Paper Wave
- Go to Paper Wave Sign-up page
- Fill in in your details
- Agree to the terms and conditions
- Click Register
- You’ll be asked to pay Ksh 500 to activate your account.
- Authorize the charge and enter your MPesa pin on your phone on the automated process.
Upon payment, your account will be activated, if not, authorize manually
As described on the landing page, The platform offers the following services
Ideally, it’s the backbone of the platform.
You need to first top up your Stellar Wallet by depositing money into your wallet through MPesa, the same way you did when activating your account.
- Scroll the navigation side bar on the left and select Deposit Wallet
- Enter amount and click Deposit
- An automated payment procedure will be sent to your phone where you input your MPesa pin
- Your money should reflect on your account.
- If it doesn’t, Select Self Service (Payment Re-verification) from the same sidebar and copy-paste your MPesa code. It should be verified.
To buy or sell Stellar coins, you can either trade with ready sellers or post requests.
With ready sellers, you trade with sellers who have placed a bid on the platform to sell their coins.
With Post request, the request is posted to the market for traders to either buy or sell from you and will only be complete when a trader transacts your bid.
You also have the liberty to trade with peers if you have their Stellar Token Wallet Unique ID. This means you must know this person’s ID.
- Just click on Wallet to Wallet.
- Enter User ID, Number of Stellar coins to trade and amount.
- Click on Sell.
This feature lacks regulation of what buyers and sellers can place as bids.
You can place a bid to trade your Stellar coins at whatever price you want. Sellers will want to sell high while buyers will want to buy at a very low price.
Which explains the huge differences and incoherence in prices under this unregulated market which renders it non-functional and useless.
For instance here is a screen-shot of Buyers. The highest price a trader wishes to buy is Ksh 0.0333
What follows is another screenshot of Sellers offers, the lowest price a trader wishes to sell is Ksh 4.
That’s over 120 times.
How can these traders ever find a common ground? Maybe time will tell.
The paper wave offers its traders abilities to withdraw their money from the system anytime between 9am and 9pm.
Your income is broken down into two sections, Referral and Stellar.
Under the Referral section, all the income accrued from recruiting people into the system is summed up and availeed for withdrawal.
Under the Stellar section, all the income accrued from the rise in the value of your stellar coins. which by now is up 5%) is available for withdrawal.
The minimal withdrawal limit is Ksh 100 and I presume there could be a transaction fee levied on all withdrawals.
Well, this is what brought me here. I was more interested in the ability for people to transact other cryptocurrencies and I really doubted a makeshift marketplace would do the work.
And I was right.
When you click the Crypto marketplace button, you’re welcomed to a very simple page with various sections
- Realtime crypto price PHP Script
- Calculator to convert Crypto to Fiat and vice versa
- Explanation of how trading on the platform works
- Buyer’s request form
- Seller’s request form
- A list of ready sellers and their offers
- Trade Completion table
To a layman, this display is substantial enough to convince them it works. But to a regular cryptocurrency trader this structure doesn’t even meet the minimal requirements of a good crypto marketplace.
I will elaborate this later when discussing the red flags.
But ideally, to trade you calculate the amount of crypto you’re buying or selling into fiat currency (Kenyan Shillings) send a trade request (using one of the two forms available depending on what you want to do) to the system.
The system will allocate you (automatically or manually) a trader who agrees with your offer.
The Paper Wave also offers Cryptocurrency trading lessons to its members.
Unfortunately, these are not platform curated tutorials. Rather, they are resources assembled from the internet. Resources anybody would have access to if they wanted.
I thought they had come up with their own lessons to explain not only how cryptocurrencies work but also how The Paper Wave ‘cryptocurrency’ functions.
The 4 Ebooks available are publications by top financial institutions and experts.
- An introduction to Cryptocurrency Trading by Forex.com
- Bitcoin and Beyond, Cryptocurrencies, Blockchains and Global Governance by Malcolm Campbell-Verduyn
- Crypto Trading 101 by Coinrule
- Cryptocurrency Investing for Dummies by Kana Danial
Three of the four publications are copyright properties. What happens if the institutions behind them press charges?
The rest of the resources are select YouTube videos on cryptocurrency.
Honestly, it wouldn’t take anybody with basic knowledge of crypto more than 10 minutes to come up with such a library.
So, surely this isn’t impressive.
There are types of Wheel Spin games on the platform
- Low-stake: Minimum Bet is Ksh 50
- Medium-stake: Minimum Bet is Ksh 150
- High-stake: Minimum Bet is Ksh 300
- Premium-stake: Minimum Bet is Ksh 900
The difference in these levels is on the types of wheels used. Obviously, the higher you stake the more you make.
- You input the amount you want to stake
- It is first deducted
- You’re then offered a chance to spin the wheel.
- Whatever the pointer falls on are your winnings.
For instance, here’s how the premium wheel looks like.
What happens if you stake Ksh 900.
It can either result in a loss or a profit. How?
A loss happens when the pointer falls on a value below 900. Because, your stake will be deducted before you can spin taking your balance back to 0 if you had nothing else. If it falls on 700, you get 700 bob. That’s (900-700) Ksh 200 loss.
If the pointer falls on 900, you lose nothing and gain nothing.
If it falls on any other position, you make a profit. For instance at 2x you make (2 x 900) 1800, a profit of Ksh 900.
Honestly I don’t like Spin the Wheel games, because they can be programmed by the creators to ensure profits for the platform rather than being designed to be perfectly random.
The reason behind the growing popularity of the platform is the referral system which rewards members for recruiting new members.
You earn on three levels.
- Level 1 (Direct) – Ksh. 300
- Level 1 (Indirect) – Ksh. 100
- Level 1 (Indirect’s Direct) – Ksh. 50
The more you invite, the more the bonus earned.
If you have great influence, at least within your circle, this feature will potentially earn you most of the money.
Xtian Dela the influencer backing this project made 120,985 within less than 24 hours from the moment he published it on social media handles.
104,450 which represents over 85% of his earning is from referrals.
That’s the power of multi level marketing
The platform allows you to pay for your recruits, whether partially or fully.
- Just click on Pay for Client on the navigational side bar and choose how you wanna pay.
This is to encourage members to invest in marketing by incentivising the process.
A member will be comfortable to pay for a recruit they are sure can bring in at least 5 new clients. That way, he makes profit and increases the opportunities to make more money.
Now with all that said and done.
Let’s get to the real stuff.
I hate doing this, busting people’s bubbles. But it’s gotta be done anyway.
I’ll put it plain and simple;
The Paper Wave is a pyramid scheme which banks on the crypto naivety of kenyans to conceal the creators’ true agenda of selling a dream, making money through multilevel marketing and disappearing with it when the seat gets hot.
Now, I’m not against that. In fact, I have previously advised people how to make money from pyramids.
Weird, isn’t it?
In my perspective, pyramid schemes are made by clever individuals who exploit the system to make money. That happens everyday.
If banks, stock traders, lawyers and insurance companies don’t ring a bell, then I cannot imagine the hem of your moral fabric.
What then irritates me is the part where they claim to offer services which they don’t, tarnish the cryptocurrency concept and use influencers to do so.
On a wide spectrum, when things go down (not if but when) the mainstream who will be affected by this fallacy will find it hard to adopt cryptocurrency.
Their mental and emotional scars from this fiasco will extend adoption; time before cryptocurrency transforms the entire financial system. Because of so much doubt built upon fake cryptocurrency projects.
Xtian Dela is someone I look up to. Honestly, his hustle from grass to becoming one of the most influential Africans on the planet is a story that gives me hope.
His creativity and adaptability to world changes and wit to identify opportunities and make money is something I envy.
Yet, he’s not perfect. And on this one, he messed.
He failed to do due diligence before endorsing something that will disappear with his followers’ money.
And it’s a little sad that he’s using this opportunity to raise money for his campaign for MP of Westlands. When the dust settles, the integrity of his campaign will be questioned.
I dont think it’s wrong. I just think it’s sad. Which is why I, too, want you to join using my link. But join after reading the conclusion of this piece
It’s sad because he failed to inform his followers of the risks involved. The potential to lose their money and the fact that they should invest only what they can afford to lose.
I’ll do this on his behalf and i’ll start with
The Paper Wave is not a cryptocurrency. It offers Stellar coins which also are not cryptocurrencies.
A cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than a centralized authority.
By definition, The Paper Wave already falls on different fronts.
- The stellar coin is not a digital currency. It’s just a name to represent numbers jumbled up on their system.
- The Paper Wave is a centralized system; everything is on the site: thepaperwave.com. This beats blockchain logic.
- There are no independent entities forming a network that verifies and records transactions. The centralized system is built on the website.
So the claim that The Paper Wave likens Bitcoin and Dogecoin in functionality is a blatant lie. Its like calling beefsteak a vegetable.
What goes behind building a cryptocurrency, let alone the blockchain to support the cryptocurrency is beyond the scope of many.
You need cryptography experts, economists, high-tech programmers, millions of dollars and many months to build something that meets the basic requirements of a coin listable on Coinmarketcap.
Kenyans’ with these characteristics do exist, and an indeginous cryptocurrency can be built if a serious believer and investor comes through.
But not The Paper Wave.
- It has no face. Nowhere on the site does it indicate the people behind it.
- It’s not backed by any known investor.
- It doesn’t have a whitepaper to elaborate the concept behind it, the problems it tackles and solutions
- There is no network
- There is no open source program
- No mining, minting, or farming system.
I could go on and on but the point still remains, The Paper Wave and its Stellar coins are not cryptocurrency.
One of the features the platform boasts about which allows trading of other cryptocurrencies is not functional.
As mentioned earlier, the trading page display is good enough to dupe a none-trader. But for traders who have used LocalBitcoins, Paxful, Coinbase among other legit crypto marketplace will laugh it off.
It seems like if you wanna buy or sell any crypto, you put forward a request to the authority who should then find a suitable trader and connect them with you.
Then you’ll have to transact offline because the site has no trading capabilities. It’s like going to a chamaa and being connected with a fellow mama who sells good Avocados, then you’ll have to meet later to trade.
That’s not a digital marketplace!
A functional crypto marketplace offers an avenue for a trader to deposit crypto (needs a wallet), request of offer crypto at prices close to standard crypto prices, hold crypto in escrow for credible transactions, and transfer of coins (requires a connection to the blockchain)
All these abilities don’t come cheap.
That is why Paper Wave designed a makeshift market display to stand in place of legit peer to peer crypto trading platform.
And you know what made me laugh out loud? The last section on that page showing ready buyers. Here’s a screenshot.
Imagine, there’s a trader ready to sell 10 Bitcoins at Ksh 1,000. One bitcoin at the moment costs Ksh 4.5 million.
They are simple offers fabricated with the highest impunity!
As expected, the challenge of a centralized system is that the authority has power to control the market. And that’s the case with this platform.
Fundamentally in credible markets, the supply and demand of coins should determine their value.
But on Paper Wave, the authority sets a price of their liking. They can decide to increase its value by 5% after every 24 hours. Yet still, they must consider the amount of money being withdrawn to ensure they stay profitable.
For instance, if you double the price for Ksh 4.50 now to Ksh 9, many people will sell their Stellar coins.
That’s not desirable for these cunning goons.
So they’ll alter the prices however they want as long as it influences profitable transactions on the platform.
If they drop the price below the original value, it will scare investors and many will sell
Note: They will do this; (drop the price of Stellar Coin) and let people withdraw coins when time comes to close shop. A perfect escape plan.
I just took a look at the referral system and knew what Paper Wave is; a multilevel marketing platform hiding under the guise of cryptocurrency.
They came in many dimensions, but the one thing that never changes, is their referral system which encourages recruitments of new members on multiple levels to increase earning potential.
You are paid by a recruit referred by your referral. Very convenient. A cash cow for those that come first (top of the pyramid).
The people behind Paper Wave are none existent. No registered entity claims ownership of this project. They just picked a gullible influencer to back them up and the avalanche set off.
If things were to go wrong now, if they closed shop now, who will you blame? Who will you report to the police? No one.
The closest they come to being accountable is providing a Customer Care Whatsapp number and you are certain that number will not be enough to serve the ballooning clientele.
Late or no replies will be common for sure and that number will always be off.
However, when you pay through MPesa, the receipt message mentions an entity; Stkella Enterprises. That could be useful.
You could ask Safaricom to name the people registered under that business name.
But they are obligated not to disclose information about their customers unless it is a police case.
Well, it depends.
Here’s a fact, pyramid schemes will always exist. It’s a reality we must live with.
While governments try forming laws to prevent such projects which exploit naive citizens, jobless computer savvy university graduates will find a way to maneuver the booby-trapped but ineffective systems built.
That’s why these schemes pop up every now and then and you’ll rarely see someone behind bars.
So you have a responsibility to use your brain to judge this. You choose the perspective to consider.
And in such cases there are two conclusions to make.
- To avoid them entirely
- To find a way to make money out of it
The first option is for non-risk-takers and those without disposable income; money they cannot afford to lose.
The second option is for risk-takers. People who understand the world is like a game, learn the rules and play. People who can find opportunities anywhere and make a few bucks. When pyramid schemes collapse, the majority lose their money. But this caliber of hardcores makes a living out of it.
I’ve done it before. You could do it too.
If you’re interested, ask yourself these 2 IMPORTANT questions
- Do you have money you can afford to lose?
- Do you have influence? Friends you can pitch to, show them the opportunity, list the risks involved and still recruit a good percentage of them?
If you do, then this might work for you.
Because you need to understand that these ‘heavenly opportunities’ don’t last and whoever you recruit to a project, will bail for your blood when things fall apart.
Pyramid schemes have made enemies, broken relationships and led to big debts and depression. So you need to tread wisely.
Lastly, you need to make a decision right at this moment.
To Join Paper Wave
Or to look the other way
Because your chances of making money from multilevel marketing platforms diminishes by the minute.
These platforms have a lifespan. Normally 2-3 months. If you join within the first month, you might just be lucky.
Signing up thereafter, you’ll be juggling obsidian knives.
Thepaperwave.com was registered on 3rd June 2021.
It started going wild on 15th June 2021 courtesy of Xtian Dela’s endorsement. That could be its real start off.
Do the math.
I’ll end with some audacious statements
Paper Wave is an MLM. Early adopters (20%) will make money. Late comers (80%) will lose money.
Paper Wave is not a cryptocurrency.
Invest only if you have some spare money or you’re a good marketer.
All the best.