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Cryptocurrency discussions / Re: Cryptocurrency Being Used On Pyramid Schemes?
« on: November 17, 2018, 08:54:04 AM »I am seeing a lot of posts on Facebook recently that offers Bitcoin to attract members. The investment scheme is somewhat similar to a Multi-Level Marketing. If you see something like this, please be careful. Always double check if this "companies" are duly registered and authorized to collect funds from investors. If they offer something like "guaranteed profit", better to stay away. They are more likely pyramid schemes. We all know that crypto is volatile and that no one can guarantee a profit.Thats right this is disadvantage of the anonymous transaction it may used for illegal activities like laundering thats why it needs to add safeguards regarding this loopholes!
Here's a good example of some of those pyramid schemes using cryptocurrency:QuoteAbout eight were arrested in Tokyo for being involved in a cryptocurrency pyramid investment scheme. The net worth of the project was 7.8 billion Yen. The pyramid scheme gathered the money from 6000 unsuspecting people in the name of a fake US investment company called “Sener.”
To prevent people from suspecting them, they have organized seminars chaired by foreign speakers. The workshops were used to create public trust in their promise for a 3 to 20 percent return on their investments. The unsuspecting investors were asked to refer further people in the scheme, and they were promised extra returns for referrals in the form of payments for each reference. The videos of the seminars were uploaded on YouTube.
Full Story: https://thecurrencyanalytics.com/3624/cryptocurrency-pyramid-schemes-scrutinized-in-japan/?utm_campaign=twitter&utm_medium=twitter&utm_source=twitter