UFun started out as an AMway-style "scam your friends, and pay for it" pyramid scheme, then began to issue UToken as a method of scamming even harder.
UToken was never actually a crypto-currency, btw, read the UFun FAQ:
http://www.ufunclub.biz/f-a-q/
Quote
A cryptocurrency (or crypto currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of new units. Cryptocurrencies are a subset of alternative currencies or specifically of digital currencies. Utoken does not fall under a crypto currency.
There is some mis-information spread around the web with regards to Utoken being a Cryptocurrency. By the end of this post we hope to clear this mis-conception once and for all.
Let us make it clear from the outset – Utoken is not classified as a Crypto Currency and in fact does not even appear in the Cryptocurrency index:http://coinmarketcap.com/
What is a Cryprocurrency?
The best definition for what makes a Cryptocurrency can be taken directly from Wikipedia ( http://en.wikipedia.org/wiki/Cryptocurrency ). To take an excerpt from that page, a Cryptocurrency is “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank”
The excerpt above immediately tells us what a currency like Bitcoin is and what a currency like UToken is not. For instance, Bitcoin is encrypted and actually created using a technique called mining. Back in the “olden days” to make a Bitcoin you would download a program onto your computer (a mining program) and “rent out” your computer resources to third parties. In return, you would be paid for your computer resources with an encrypted form of currency – the Bitcoin.
On the other hand, aUtoken is not generated through any mining device and so no encryption is required.
There is some mis-information spread around the web with regards to Utoken being a Cryptocurrency. By the end of this post we hope to clear this mis-conception once and for all.
Let us make it clear from the outset – Utoken is not classified as a Crypto Currency and in fact does not even appear in the Cryptocurrency index:http://coinmarketcap.com/
What is a Cryprocurrency?
The best definition for what makes a Cryptocurrency can be taken directly from Wikipedia ( http://en.wikipedia.org/wiki/Cryptocurrency ). To take an excerpt from that page, a Cryptocurrency is “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank”
The excerpt above immediately tells us what a currency like Bitcoin is and what a currency like UToken is not. For instance, Bitcoin is encrypted and actually created using a technique called mining. Back in the “olden days” to make a Bitcoin you would download a program onto your computer (a mining program) and “rent out” your computer resources to third parties. In return, you would be paid for your computer resources with an encrypted form of currency – the Bitcoin.
On the other hand, aUtoken is not generated through any mining device and so no encryption is required.
So, nah, UFun/UToken is complete BS.