Have you invested in Gate.Chain? Scam alert! - Research report

There is a shared hope among investors: “I made the right decision. My investments are safe. This will turn out well and make me rich.” Well, that might be a desperate prayer for Gate.Chain investors.

The information obtained by our team, from a source that prefers to remain anonymous, reveals details about the Gate.Chain project that should concern investors. According to the source, this crypto project is nothing more than a typical “pump and dump” scheme.

“Why, you may ask? The project has an apparently 'positive' market presence, while those who have invested cannot sleep for days. One source claims: 'I haven't been able to sleep for days. This is all the money my family had.'”

One would think that this sentiment is reflected in the market. But you are mistaken. The media coverage is praising Gate.Chain as the next Solana, Dogecoin, XRP, or Shiba Inu. The promotion of the coin lacks confidence, with some crypto media mentioning it as a “by the way” topic at the end of their articles.

Let's get to the point.

What is Gate.Chain about?

According to the information on its website, Gate.Chain is an innovative real estate tokenization platform designed to leverage blockchain technology and revolutionize the way properties are bought, sold, and managed. What is its mission? To revolutionize the real estate sector using blockchain technology.

The data from their website shows an upcoming presale, how to join, and how much to spend. They also have a whitepaper. The problem is that the team behind the project is not mentioned. It is a ghost project.

Additionally, when analyzing the first two sections of the white paper with GPTZero, an AI score of 100% was shown.

Regarding the tokenomics, the Gate.Chain ecosystem is built around a total supply of 1,500,000,000 tokens. 45% of these tokens are allocated for a presale.

The tokenomics made investors, like our source, rush to make investments. In a tweet, the coverage states: “Invest $1K and you'll be in the game. ROI? Early investors are targeting up to 800%.” On the other hand, the native coin of the project ($GCHAIN) has been listed on CoinMarketcap.

X's tweet also adds: “Already listed on CoinMarketCap, $GCHAIN is ready to take off with bonus tokens and benefits such as a 225% APY staking.” In other words, who wouldn't invest? But there is a problem: the listing has no price function.

However, crypto platforms like Gate have not yet registered the coin or taken on-chain data.

Alarm signals and doubts

According to our source, the investor bought the presale tokens for a value of $4,000 and another $3,000, and the list goes on. Since Trump won as the 47th president of the United States, cryptocurrencies have become a hard conversation to avoid.

Our source jumped on the Trump victory train and made investments. Unfortunately, like many who have been scammed, they are a novice crypto investor. According to this investor, “I had never been involved in cryptocurrencies before, but I was swayed by articles that promised high returns along with their fake white paper.”

The first red flag is the White Paper. The team put little to no effort into presenting the project to the crypto industry. According to the source, “it was written by AI bots.” For this particular investor, the white paper is not the only red flag. That's not all. Their audit was a lost deal.

The team behind Gate.Chain did not conduct a legitimate audit from a reputable company. Instead, they published a GitHub repository, claiming it to be a real security audit. The blockchain does not show that an audit took place.

They add: “Their Telegram chat group is probably filled with about 95% bots where another meaningless message is posted every 30 seconds.”

Furthermore, “their Instagram page is filled with comments on every post, yet each one of them is a bot. They do not have a single authentic press release that is not sponsored. They have not provided any information about who is behind the project.”

True to those assumptions, Instagram has the same “people” responding to IG posts with a similar tone. The crazy thing is that the accounts are new, with zero to 100 followers, and they follow each other.

Its pages are also adorned with Bitcoin coins and NFT monkeys. These Instagram pages comment on the words found in its white paper: “Great growth and adoption potential! Gate.Chain is where the real estate sector meets cutting-edge innovation. Good transparency and regular updates!”

An account comments the same thing more than three times in a single post.

These positive media coverage reports have not been purchased by users on X. Under some of their posts, a user writes: “There is hardly any interaction on their social media x and telegram. Guys, don't invest your life savings in this nonsense. I’m just sharing my experiences; do whatever you want with it!”

A user, Homaira, has been firm in recovering her investments. She writes: “Are you serious? Why has X restricted your account? What is your contract address and when will I get my coins?”

Another adds: “This is a scam project, a scam token, they will steal your money. You have been warned.”

Investors are trying to find an exit.

These are not the days when investors sat idly by while scammers ran off with their money. Our source has contacted the team on Telegram with questions only to encounter bot responses. Bots have become customer service, dealing with humans who have lost family investments.

A user created a question thread on Reddit linked to Gate.Chain - I bought the presale of Gate.Chain… Is it a scam?

The question: “I bought a small amount of GCHAIN in your presale thinking it seemed to have good utility, but I have seen many here saying it is a scam. Is the wallet from which I sent the coins at risk, or has only the money I invested been lost?”

The answers have been what you would already expect at this point. A blatant scam.

One account, a 1% commentator, responds: “Literally, all presales are just quick ways to get money for those who created the token/coin, which means they are almost always going to be scams. Any money you sent there is gone. No one can recover it, and inevitably you will have people messaging you saying they can help you with recovery. That is just another part of the scam, so avoid that too.”

What is worse, the reviews of Gate.Chain on Scam Advisor say: “This website has been reported as possibly harmful by Gridinsoft”. The “trust score” is discouraging. The analysis adds: “The trust score of Gate.Chain is extremely low. This is a strong indicator that the website may be a scam.”

How much has been lost and will be lost? Maybe thousands, maybe millions. Whatever happens, do proper research before investing in any crypto. Current markets have shown that project developers have become the biggest scammers, apart from hackers.

A synchronized art of crime

Where did the money that investors put into the project go? Do you remember how the bots are doing everything from public relations to customer service, Instagram responses, and investor management? Well, a system was established that moved and still moves funds when token purchases are made.

Before reaching the money, Gate.Chain has countless Telegram groups, which have gathered more than 547,000 users in total.

Furthermore, Gate.Chain is impersonating individuals as moderators. They are pretending to be other people. Our team found real individuals on LinkedIn and they denied being part of Gate.Chain.

So, who has been taking the money and where is it? Well, our source created a Coinbase wallet on the Base Network. Shortly after our source sent their money, it was moved to an exchange immediately.

Whoever is behind the project changed the money to buy popular and more valuable tokens in the crypto ecosystem. Does that sound familiar? The scheme is designed so that investors are funding thieves ( who have fake coins ) to finance legitimate investments in the crypto ecosystem.

There is pain, questions that must be answered, and justice that must be served to the victims. How will that happen? Who will make it happen? When will it happen? These are questions for which we still do not have answers. But we will have them. If you have been affected, like our source, contact us.