Every time something new in finance world is invented, there are always the types of people who want to take advantage of the knowledge gap in society. This has made many good things end up in a bad reputation. Bots in the trading - be it Forex, stock was a good thing. It could keep you from spending hours into the desk watching the market for buy and sell actions. Then the scammers from MLM world got hold of the bots and now they are yet another product of their scammy scheme.
Before we get our insights into how the MLM people are into the crypto scams in automation trading. Let's first talk about how the automation trading works. Say you have a stock or crypto or forex pair to buy. You can use the bots to buy or sell the asset at specified limit. This works most of the time when the market is behaving and you have setup things properly. However it's not consistent and also not as automated as it is being promoted.
So where is the scam? And how the MLM people got into this industry?
Signal Selling MLMs
A lot of Instagram and Tiktok accounts are promoting a product or a service that is called - Signal Selling. Where a bunch of the manipulators want you to buy the specific stock, crypto in order to artificially raise it's price. By getting a lot of people to buy specific asset and creating the hype, the whales who bought the asset when the price was low can now make an exit.
Meanwhile the clients they are fishing can also exit if they choose to on time. So they make sure to ask some people to HODL and some people can make exit. And funnel dries out making some people money and new fish end up losing into the process. Now here siganl is created by the companies, groups or the people who are kind of like fishing for the new cashflow. Imagine this is being offered under MLM title where you get new people into this scam using the pyramid scheme and get them to invest or take out the money as needed.
Automated Robot Scam
Now this is one of the scam that is of my interest too. Here we all know the traditional bots offered to you by the brokers or if you bought them on your own can automate your trades. And it just stops at that. However the MLM who are pushing the sales methods to trap a fish into the game. They are promoting this scam and making claims that such bots can make you millionaire in a year or so.
They are basically using mixture of the Signal Selling and the Bots in combination to show the short term profits. And then showing them to the newbies who can't pull off the same heist on the market. So if the newbie does not make money the way they did with manipulation, they can always blame the newbie on not using the tip and the bot the right way.
Where's the MLM Part?
Now both of the models where you are being manipulated makes use of the pyramid scheme in order to bring in more fish. Like you bought their product or service they want you to bring new guys in the hope that they can get their investment back. And this grinder continues to grind the fresh blood. This just keeps on going till the people are dried out. And the products being not part of this recruiting scam, it just goes on.
You will also find "Toxic positivity" people pitching the products of this type with various claims. If it helps you come out of poverty, what is wrong in that? If it helps you become free from job and financial independent , what is wrong with that? A lot of Amway, Lularoe type claims are made and financial world they find the new fish everyday who are easy to manipulate as well.
Few more things to Consider
Women who are work at home are prime target of many of such "business opportunity" or "side hustle. They want such women to leech off husbands money or their own nest egg and put into such scams. Here even men are being manipulated where they are put into guilt of how you doing this program can help the family and make it easier for them.
Understand the part that Automation of the bots is possible for buy-sell and other market indicators. Bot can't do prediction and give you profit. If it was that easy, all the rich people would be on such terminal and bots printing money. Such scams are feeding off the slightly more educated and tech savvy crowd which is miserable financially and also struggle with family & relationship and that's where these MLMs and scammers to manipulate this target demographics.
Have you came across some of such scams? What's your experience on handling such scam products and MLMs?
