Sparklo.Finance Review: Examination into Claims of a Scam

In the evolving world of blockchain technology and digital assets, Sparklo Finance (Sparklo.finance) offers a unique value proposition. As the first blockchain investment trading platform specializing in precious metals such as Gold, Silver, and Platinum, Sparklo.finance could potentially revolutionize how individuals and institutions invest in these high-value commodities.

Built to democratize investment in these precious metals, Sparklo.finance apparently allows users to fractionally invest in Gold, Silver, and Platinum, thereby breaking down the high barrier to entry that often accompanies these types of investments. As per the information available, depending on the value of the initial investment, users can avail themselves of various benefits such as discounts on trading fees. The platform offers a tiered system where a $10,000 investment in Silver avails a 20% discount on trading fees, while a $35,000 investment in Gold fetches a whopping 50% discount.

Let’s delve deeper into the various features, benefits, and potential challenges that Sparklo.finance presents. Stay tuned for a more comprehensive evaluation.

Sparklo.finance Review

Sparklo Finance, a unique digital investment platform specializing in the trading of precious metals such as Gold, Silver, and Platinum via blockchain technology, was officially registered on November 22, 2022.

The platform’s domain was procured through GoDaddy.com, LLC for a one-year term, and its digital security is fortified by Cloudflare, along with a privacy service provided by Domains by Proxy, LLC.

Regarding global web traffic, SimilarWeb places Sparklo Finance at 574,557 in global ranking and 267,183 within the United States. As of June 2023, it attracted approximately 60,000 unique visitors from various countries, notably the United States, the United Kingdom, and Italy.

The website’s authority score, according to SEMrush, stands at 13, backed by 30.2 backlinks from a total of 720 referring domains such as cryptomufasa.com, premiumcryptoinfo.com, cardanofeed.com, technoblender.com, and sanjoselatestnews.com.

Upon landing on the homepage, Sparklo Finance distinguishes itself as the pioneering blockchain investment trading platform specializing in precious metals. In the “About the Platform” segment, the platform underscores its innovative approach to metal trading, directly addressing the constraints posed by traditional investment platforms. Sparklo utilizes blockchain technology to provide benefits such as reduced fees, improved accessibility, instant transactions, and economies of scale.

Sparklo’s roadmap is presented in three stages, outlining the project’s progression. This includes smart contract creation, website development, security audits, presale launch, exchange listings, partnerships, the beta release of the platform, and aiming for a top 250 ranking on CoinMarketCap.

For user convenience and to establish a direct line of communication, Sparklo Finance provides an email address, questions@sparklo.finance, alongside its Twitter and Telegram channels.

In essence, Sparklo Finance stands as a groundbreaking platform, leveraging blockchain technology to provide accessible, efficient, and secure investment opportunities in Gold, Silver, and Platinum trading.

Sparklo VIP Club Membership Tiers and Benefits

The Sparklo VIP Club is an exclusive feature of Sparklo.finance that offers different membership tiers with corresponding benefits based on the investment amount.

Silver Tier

To qualify for the Silver membership, a minimum investment of $10,000 is required. The benefits of the Silver Tier include:

• A 20% discount on trading fees, thereby reducing transaction costs.
• Subscription to a monthly newsletter providing updates and insights about Sparklo.
• Allowlist access to the NFT collection, which allows for early access or special privileges for these unique digital assets.

Gold Tier

The Gold membership requires a minimum investment of $35,000. Gold members enjoy additional benefits, such as:

• A generous 50% discount on trading fees.
• An airdrop of an exclusive NFT, providing a unique digital collectible for Gold members.
• A dedicated VIP account manager to provide personalized assistance.
• A Gold badge is displayed on the platform, signifying the member’s VIP status.

Platinum Tier

The highest tier, the Platinum membership, necessitates a minimum investment of $70,000. The benefits of Platinum membership are the most extensive and include:

• A substantial 75% discount on trading fees.
• An airdrop of an ultra-rare exclusive NFT, offering a highly valuable digital collectible unique to Platinum members.
• Priority access to testing the platform, allowing early use of new features.
• A Platinum badge is displayed on the platform, signifying the highest VIP status.
• A senior VIP account manager providing personalized support and assistance.
• Opportunity to network with other Platinum members, fostering potential collaborations and connections.
• First access to new drops and releases on and off the platform, offering exclusive opportunities ahead of other users.

Tokenomics and Roadmap of Sparklo

Sparklo’s tokenomics introduces a tax system on both buying and selling transactions of its tokens.

When purchasing the Sparklo token, buyers are subjected to a 4% tax. This tax is divided into three parts:

• 2% is contributed to the liquidity pool.
• 1% of the tokens are burned, which leads to a reduction in the overall token supply.
• The remaining 1% is utilized for marketing activities.

Selling the Sparklo token comes with a 6% tax, distributed as follows:

• 4% is contributed to the liquidity pool.
• 1% is burned, further reducing the total supply.
• The remaining 1% is allocated for marketing purposes.

As for the token supply, Sparklo has established a maximum supply of 1,000,000,000 tokens. The distribution breakdown is as follows:

• 60% (600,000,000 tokens) is allocated for the presale phase.
• 10% (100,000,000 tokens) is reserved for exchange listings.
• 9% (90,000,000 tokens) is dedicated to the team.
• 8% (80,000,000 tokens) is set aside for staking rewards.
• Another 8% (80,000,000 tokens) is allocated for marketing.
• 5% (50,000,000 tokens) is earmarked for the advisory team.

Roadmap

Sparklo’s roadmap provides a clear vision of the project’s direction and planned developments. The roadmap is divided into three stages:

STAGE 01

The first stage involves the creation of the Sparklo smart contract, website design, smart contract audit, and data gathering for informed decision-making.

The stage concludes with the launch of the presale phase.

STAGE 02

The second stage includes KYC verification for the founder, lockup of team tokens, listing on Uniswap, application for listing on CoinGecko and CoinMarketCap, and releasing the staking app.

This stage ends with the continuation of marketing activities.

STAGE 03

The final stage involves forming partnerships to expand the ecosystem, releasing the platform in beta mode, applying for listing on centralized exchanges, aiming for a top 250 ranking on CoinMarketCap, a special burn event, and ultimately renouncing ownership for decentralized governance.

Whitepaper

Based on their whitepaper, the SPRK token, an ERC20 token, will be widely used on the Sparklo investment marketplace platform. The project has been audited by InterFi Network, and the liquidity will be locked for 100 years.

Sparklo’s platform features include the following:

1. Asset Tokenization: Each precious metal asset will be represented by a unique digital token, providing a secure and immutable record of ownership.
2. Buying and Selling: Investors can buy and sell digital tokens representing precious metals. Transactions are facilitated and recorded on the blockchain.
3. Storage: The actual precious metals are stored in secure, insured vaults. The digital tokens representing these assets are owned by the investor.
4. Trading: Tokens can be traded with other investors on the platform.
5. Redemption: Digital tokens can be exchanged for fiat currency.

The security of the assets is ensured through storage in formally recognized bullion storage facilities. Bar Lists, akin to bank statements, are published online to provide transparency, with user identities hidden.

The maximum supply of SPRK tokens is set at 1,000,000,000, with specific allocations for presale, staking rewards, marketing, exchange listings, team tokens, and the advisory team.

Smart Contract Audit Report Overview

The Sparklo blockchain project underwent a comprehensive audit by InterFi Network. This audit delved into the smart contract of Sparklo, identifying potential issues, providing recommendations, and issuing several disclaimers about the scope and nature of the audit services.

Centralization Privileges (Severity: Major)

The InterFi Network audit noted several centralized functions such as `setMarketingAddress()`, `setSwapAndLiquifyEnabled()`, and others.

It is recommended that Sparklo secures the deployer and contract owner’s private keys carefully, mitigating potential vulnerabilities associated with centralization.

Initial Asset Distribution (Severity: Minor)

InterFi Network highlighted an issue where all initially minted assets are sent to the contract deployer.

While this is not necessarily a serious security concern, it could potentially lead to fairness issues in asset distribution.

Therefore, the recommendation is for Sparklo to communicate transparently with stakeholders during asset distribution.

Privileged Role Receiving LP Tokens (Severity: Minor)

The `addLiquidity()` function in Sparklo’s smart contract sends liquidity to the owner.

As a measure to prevent potential exploitation, the recommendation is to send LP tokens to a dead or unreachable address, thereby decentralizing the distribution of LP tokens.

Lack of Arbitrary Limits (Severity: Medium)

There are no arbitrary limits in certain functions like `changeNumTokensSellToAddToLiquidity()`, and `changeMaxTxLimit()`. This could lead to potential misuse.

Thus, InterFi Network recommends setting reasonable limits for these functions to maintain a balanced system.

Potential Sandwich Attack (Severity: Minor)

The Sparklo smart contract could be susceptible to sandwich attacks due to the lack of restrictions on slippage or minimum output amounts in `addLiquidity()` and `swapTokensForEth()`.

To prevent this, it’s recommended to set minimum output amounts in these functions.

Timestamp Manipulation (Severity: Minor)

The contract uses `block.timestamp`, which could potentially be manipulated by a miner.

Following the standard 15 seconds rule could help maintain block integrity and prevent such manipulations.

Third-Party Dependencies (Severity: Minor)

The audit noted that Sparklo’s smart contract interacts with third-party protocols like Pancakeswap and Uniswap. These dependencies could pose a risk.

Regular inspections of these dependencies are recommended.

Social Media Presence

Sparklo’s Twitter handle, @sparklo_finance, boasts 1,020 followers and has posted 144 tweets, demonstrating regular activity and updates.

Recently, a successful promotion enabled the sale of millions of tokens and attracted hundreds of new holders.

Currently, in the closing stages of Stage Three of their token sale, Sparklo tokens are priced at $0.009 with a bonus of 70% until July 22nd at 20:00 UTC, after which the price will increase to $0.105. With over 11,240 sign-ups and more than 2,570 token holders, the platform’s presale has generated substantial interest.

The platform’s focus on transparency and engagement is further reflected in its recent AMA (Ask Me Anything) session on July 17th.

Additionally, Sparklo’s presence extends to the messaging platform Telegram, where they maintain a group of 1,106 members, with around 49 currently active.

Red flags

Potential investors need to do their own due diligence before investing in any platform. Here are a few factors to consider regarding Sparklo Finance:

1. Young Platform: Sparklo Finance was registered on November 22, 2022. As a relatively new platform, it lacks a long track record, making it more challenging to assess its reliability and long-term viability.
2. Domain Registration: The domain was registered for only one year, which can sometimes be a red flag, as scam websites often use short-term registrations. However, legitimate businesses also sometimes register domains for short periods initially, so this is not a conclusive indication of foul play.
3. Ranking and Traffic: While the ranking and traffic may not seem impressive, it is typical for new platforms.
4. Tokenomics: The tokenomics of Sparklo involves a tax on buying and selling their tokens. This is not necessarily a red flag, as many legitimate DeFi platforms use similar mechanisms. However, potential investors should understand this structure thoroughly and be comfortable with it before investing.
5. VIP Club: The VIP club requires a significant minimum investment. Before committing such amounts, investors should ensure they fully understand the terms and conditions, benefits, and risks involved.
6. Centralized vs Decentralized: Even though it uses blockchain, the description suggests that Sparklo is somewhat centralized (with mentions of a dedicated account manager and a founder). Potential investors should be aware of this, as it might go against the philosophy of decentralization many crypto investors appreciate.

Sparklo Reviews

Scam Detector’s Review

According to the Scam Detector’s validator, Sparklo.finance is considered controversial and risky, with a medium-low trust rank of 39.1 out of 100.

The website falls under the Blockchain industry and Investments sector.

Concerns arise due to the poor website design, the lack of credibility, proximity to suspicious websites, and several other factors such as domain creation date, website popularity, and HTTPS connection.

The website’s threat, phishing, malware, and spam score also contribute to its medium-low trust rank.

The review advises caution when dealing with Sparklo.finance.

ScamWatcher’s Review

ScamWatcher highlights several concerning issues about Sparklo.finance. It deems Sparklo’s services questionable and flags the lack of regulation and transparency.

The platform does not provide sufficient information about the people behind it, which is considered a red flag. Moreover, Sparklo sets unrealistic earning expectations, a common indicator of scam offers.

The review also indicates potential difficulties with withdrawals.

Overall, ScamWatcher considers Sparklo.finance an unregulated platform to be avoided.

ScamAdviser’s Review

ScamAdviser gives invest.sparklo.finance a very low trust score of 1 out of 100.

The website is considered unsafe due to several red flags, such as the hidden identity of the owner, low traffic, an iframe within the website, and several low-rated websites hosted on the same server.

As the website is relatively young, it’s advised to conduct further research and exercise caution when interacting with it.

Online Trading Platform Review

A Sparklo.finance review mentions red flags such as hidden owner information, duplicate content, and a low trust score.

It emphasizes the importance of conducting thorough research and being cautious when investing in platforms like Sparklo.finance.

Reddit Reviews

Several posts on r/CryptoScams warn users about Sparklo.finance.

The platform is accused of being a scam with an anonymous team.

It’s linked to other projects deemed scams, such as Degrain, Flasko, Chronoly, Plona, and VC Spectra.

Users share negative experiences and warn others to avoid Sparklo.finance.

The overall consensus is that Sparklo should be avoided due to concerns about unregulated operations and unclear timelines.

Scamwatcher.com’s Report

Scamwatcher.com also raises concerns about the lack of information and regulation surrounding Sparklo Finance.

With no email server and limited contact options, the platform is deemed unreliable.

The firm is also reported as not being regulated and not listed in the British Virgin Islands Financial Services Commission’s database, leading to recommendations to stay away from Sparklo Finance due to potential rug pull scams.

WebParanoid.com’s Analysis of Sparklo.finance

WebParanoid.com labels Sparklo.finance as a low-trust investment/earning website and advises against entering personal information or engaging in financial transactions on the site.

The website’s content analysis suggests potential fraudulent cryptocurrency-related activities, investments, and casinos.

Although a valid SSL certificate is present, there are still reasons to be cautious. It is recommended that users proceed with care.

Overall, reviews and user experiences with Sparklo.finance are largely negative.

Sparklo Finance Review Conclusion

From a surface-level perspective, Sparklo presents a promising and innovative business model that taps into the lucrative intersection of blockchain technology and precious metal trading.

Sparklo’s VIP Club provides significant benefits associated with various investment tiers. Although the tax system implemented on token transactions may be controversial to some, it is a common feature in legitimate DeFi projects and does not raise any suspicion.

However, delving deeper into the platform raises several red flags. Sparklo is a recently established platform that was registered in November 2022. Its reliability is uncertain due to its lack of track record. ScamAdviser, Online Trading Platform Review, Reddit, Scamwatcher.com, and WebParanoid.com consistently express concerns about Sparklo’s legitimacy, citing reasons such as poor website design, lack of regulation, low trust scores, and association with other suspicious platforms. These negative assessments of Sparklo significantly diminish the platform’s trustworthiness and are difficult to disregard.

Additionally, while the smart contract audit did identify and address some concerns, it highlighted significant issues, including centralization privileges and the potential for a sandwich attack, which could make the platform more susceptible to fraudulent activities. The concealment of the identities of the people behind Sparklo.finance, coupled with unrealistic earning expectations and reported difficulties with withdrawals, further amplify the uncertainties surrounding the platform.

Bottom Line

Given these considerations, it would be prudent to approach Sparklo.finance with caution.

Potential investors should conduct their own thorough research, consulting various sources and perhaps seeking professional advice before committing any funds to the platform.

While Sparklo.finance may indeed be a pioneering platform in the world of blockchain-based precious metal trading, the preponderance of red flags and negative reviews suggest that it may be a risky investment at this time.

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