Cryptocurrency Being Used On Pyramid Schemes?

[Zed0X]

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 these "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.


Here's a good example of some of those pyramid schemes using cryptocurrency:

About 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

[TERENCIO]

Bitcoin was used as a mode of payment for HYIP and any scam projects. I was also a victim of this type of scheme when I started doing an online. I  urge evryone do not invest your hard earned on this type of program.

[ZionRTZ]

This is one of the reasons why Bitcoin and cryptocurrencies are seen negatively by the crypto-uneducated public. I cannot believe peope are still falling for these schemes. Seems like brains stop to function when there's quick money on the line.

[Deallove9]

If someone in cryptocurrency still fall for such scheme the it shows the person is greedy type that need to learn in hard way most especially the pay eth to get more , cause any one that know about Bitcoin and still go for such are need to be blame.

[MOProgress]

Off course yes! Its no longer strange that cryptocurrency has been used for long time for pyramid schemes, and most of these guys gets free after that.

[masterrex]

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.


Here's a good example of some of those pyramid schemes using cryptocurrency:

About 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

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!

[inewoods]

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.


Here's a good example of some of those pyramid schemes using cryptocurrency:

About 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

The scammers use btc as the platform for scamming is because bitcoin is the hot thing now and once you get greedy most probably you will get hook by this scam. In another words we still can be sure bitcoin still can attract people so there bitcoin still has its value, most scams boils down to you being greedy as long as you are not greedy you will be quite safe.

[Zed0X]

I was also a victim of this type of scheme when I started doing an online. I  urge evryone do not invest your hard earned on this type of program.

Sorry for your loss. I believe you are more aware now and hopefuly, you started educating others about this scheme.

This is one of the reasons why Bitcoin and cryptocurrencies are seen negatively by the crypto-uneducated public.

Agreed. This is not the kind of publicity that cryptocurrency needs.

If someone in cryptocurrency still fall for such scheme the it shows the person is greedy type that need to learn in hard way most especially the pay eth to get more , cause any one that know about Bitcoin and still go for such are need to be blame.

That Eth giveaway is another type but yeah I agree that greed is a reason why people still for such scheme.

The scammers use btc as the platform for scamming is because bitcoin is the hot thing now and once you get greedy most probably you will get hook by this scam.

On point. Scammers are riding on bitcoin popularity and these unsuspecting victims get hooked because of their greed.

[gurunanakji777]

Such ponzi schemes ruin the image of cryptocurrencies on the basis of such pyramid schemes some people says crypto coins are ponzy schemes but they do not want to understand they do some kind of MLM and they promise them good profit in return in short time. I would advice one must away from such schemes and these pyramid schemes ruin the name of bitcoin as well. Those who lost their money they don't understand the real reason of loosing his money actually they invest money in pyramid scheme not in coins. So its better to invest in coins rather than joining any such pyramid schemes.

[ivanleon]

Various pyramid schemes they exist everywhere, whether they are made on Ethereum smart contracts or standard Fiat financial pyramids that offer a certain percentage of income per day. Everyone decides for themselves whether to participate in this or not, just keep in mind that eventually the pyramid will collapse, it will take a few months, maybe a year, but it will close, and you will lose your money.

[ribowo76]

This kind of thing has been damaging the cryptocurrency image so far. Finally, people have a negative perception of crypto, especially people who do not have an understanding of crypto

[Hope15]

Yes you're right! Bitcoin used for a payment for some pyramid schemes,  my friend is victim with that kind of investment it's like double your money using bitcoin, that's why some people think that bitcoin is a scam because of this issue.

[fallenangel1789]

Yeah. We always have to be cautious. I have read a news a few days ago. 8 arrested for running $68M cryptocurrency Ponzi scheme in Japan. Not only Ponzi-Pyramid schemes but also hacks are big threats. If it is true in September it was reported that over $540 million in cryptocurrency had been lost to hacks in the first half of 2018.

[bettyhill]

Thanks for the information. Scam everywhere. It discourages investment and this is not good for the market. I hope it reduces soon