UFUN’s uToken Review
UFUN International has created a new digital currency. This digital currency aims to be the world’s first to be backed up by a bank reserve.
Over the past few years, we’ve witnessed the rise of Bitcoin, Dogecoin, Litecoin, and countless other virtual currencies. Each of these currencies is trying to get a slice of the billion-dollar virtual currency market.
How does uToken work? And is it actually any different from Bitcoin and other currencies? Should you invest money in it?
Today, in our uToken review, we’re going to explain exactly how UFUN’s new uToken virtual currency works.
What is uToken?
uToken is a virtual currency created by UFUN.
UFUN – alternatively called Team UFUN International or UFUN Group – was created in 2014 with the goal of being the world’s largest e-commerce platform.
uToken is one part of that: UFUN created uToken as a self-sustaining global currency. The currency also has a lucrative commission structure – like a 10% administration fee for each transaction – which ensures its network gets rewarded handsomely for selling uToken packages.
How Does uToken Work?
Here’s a broad overview of the features and functions of uToken.
-uTokens can be traded at www.utokens.com and www.ubartertrade.com
-They can be transferred directly from person to person
-They can be directly bartered to pay for any good or service, like flights, hotels, food, or rent
– uToken can be used all over the world and on any different device, including desktop PCs, laptops, tablets, and smartphones
UFUN claims that its uTokens can be used as a medium of exchange for any good or service. It also claims that it can be used as an investment opportunity. If you look up the definition of currency, you’ll see words like “medium of exchange” and “holder of wealth”, so uToken is just solidifying the idea that it’s a legitimate, usable currency.
Is uToken Actually Backed By a Bank Reserve?
uToken claims to have one huge advantage over other virtual currencies: it’s backed by a bank reserve. Now, let’s clarify what that bank reserve is and how it works.
uTokens are issued by a company called uToken Reserve Limited. This private bank is managed by an “independent international board of members consisting of bankers and managers from around the world.”
One of the goals of uToken Reserve Limited is to grow its reserve ratio through “prudent management.” Specifically, uToken Reserve Limited claims to operate at a 22% reserve ratio. Every uToken around the world has 22% of its value backed by real liquid wealth – at least, according to UFUN.
To put that number in perspective, most modern countries have a reserve ratio or capital requirement between 1% and 5%, so uToken’s reserve ratio would be considered fairly high.
UFUN also claims that uToken Reserve Limited complies with the BASEL standards for international banking as outlined here.
In any case, the money generated from uToken is placed in a fiduciary account. That amount is insured by a company called Grade A Insurance Company.
Where Can You Use uTokens?
uToken claims to be usable all over the world to buy different goods and services. In reality, there are only a small number of places you can actually use uToken.
First, UFUN has set up a website called www.ubartertrade.com. This website lets uToken members connect with one another and barter uTokens for goods and services.
Second, UFUN claims that it’s currently trying to improve regulatory framework around the world in order to get uToken accepted at different retailers, stores, and websites. At this point, however, you can only use uToken at official UFUN websites like www.ubarterandtrade.com
How to Buy uToken
One of the odd things about uToken is that you cannot purchase uTokens directly from UFUN or the official uToken website.
Instead, you need to purchase uTokens from an official uToken member. These members sell uTokens in different packages. You can find packages ranging from $500 USD to $50,000 in exchange for various shopping vouchers on the uToken store.
Packages come with different types of uToken “points”, including:
-S-Point: Shopping vouchers
-P-Point: Free products
-U-Point: uToken “multiply”
If you look around the internet, you’ll find plenty of people who are excited about selling you lots of uTokens. These people are encouraged by a generous commission structure, which we’ll explain below.
uToken Commission Structure
If you decide to sell uTokens as a business (anyone can join), then you’ll enjoy a powerful commission structure designed to reward those who have large networks or happy customers and salespeople.
uToken is based on a multilevel marketing-style commission structure, and new members can only join through existing members.
Members get 7% to 12% commission per person who joins directly beneath them. There’s also a 7% to 12% development bonus for everyone below you. The largest investors receive a global 1% sell bonus.
For those who are worried about getting paid by UFUN, the company claims that it’s based on a self-sustainable business model. UFUN claims to have invested in gold, property, retail, and entertainment, for example. UFUN has also enacted security measures like:
-UFUN takes a % of fee when a new member joins
-UFUN takes 10% commission when a member withdraws
-A 1% transfer fee is charged whenever uTokens are transferred
-30% of withdrawals are repurchased as uTokens, which means someone cannot crash the uToken market simply by withdrawing all their money
-UFUN makes commissions from all transactions in the UFUN Store and the Ubarter Trades.
In other words, the UFUN “security measures” for the business involve charging numerous fees along the way. These fees keep the business afloat and, in theory, keep the currency stable.
UFUN also claims that the value of uToken cannot fall. On its official website, UFUN says:
“The value of UTOKEN cannot fall, it will always rise. Members are not allowed to sell below the counter price.”
In spite of that promise, the official uToken website seems to indicate that the value of uToken has fluctuated sharply since it was created. Check out this chart:
Ultimately, uToken claims to have made 50 millionaires in its first year of operation (2014).
Conclusion: Should You Join UFUN or Buy uTokens?
If you join the UFUN team as a network marketer, you can enjoy a generous commission structure and receive a small slice of the 10% fee charged on every uToken transaction. You will, however, have to join through an existing member, which means that UFUN is not a good choice for those who want to avoid multilevel marketing companies.
uToken is currently in its very early stages of development. It’s only accepted at two UFUN websites (utokens.com and ubartertrade.com) at this point in time, which vastly limits its usefulness as a currency.
However, that may change in the future. UFUN is actively trying to get uToken accepted at stores around the world. It’s also trying to change regulatory framework.
Bitcoin isn’t backed by any type of bank reserve or country. uToken, however, is backed by a bank which claims to maintain a 22% reserve ratio. Although that “bank” is a small private entity, it seems genuinely committed to keeping uTokens afloat.
If the virtual currency market sounds interesting to you, and you think you’d be a successful network marketer, then UFUN could be the opportunity you’ve been waiting for.