Ponzi Scheme

How to identify a ponzi scheme or pyramid scam?

By Fily Crypto | FilyCrypto | 22 Apr 2024


I want to show you 4 characteristics with which you can easily identify a ponzi scheme or pyramid scam because it doesn't seem fair to me that these supposed companies appear out of nowhere in a strange country, come to our region and take our money.:
1. They offer a return well above the average for traditional businesses: Currently, the average return on a legitimate investment ranges between 5% and 16% per year, so if someone offers you a return well above this, the most I'm sure he wants to scam you.
2. It has a referral system: If they tell you that to increase your income you must bring people even if this is not mandatory, it is most likely a scam.
3. The company is promoted by smoke-selling enthusiasts: It is normal for this type of business to be promoted by extremely positive people, assuring you that everything will turn out well and that the business is legitimate, showing off luxurious things like high-end vehicles, cell phones and houses.
4. They take advantage of the narrative of the moment: I want to explain this with an example; At the beginning of this year, the Bitcoin cash ETFs were about to be approved and I saw how a supposed company took advantage of this wisdom to scam with the argument that it was raising money to invest in a Bitcoin ETF when in reality these ETFs were just about to be approved.

Any company or business that meets these 4 characteristics that I just mentioned is most likely a scam, you should be careful and pay close attention to where you invest your money.

How do you rate this article?

2


Fily Crypto
Fily Crypto

My name is Andres I live in Colombia, I like so much the world Cryptocurrencies.


FilyCrypto
FilyCrypto

I am Andres From Colombia. With love and honesty I will provide you with valuable information about the world of cryptocurrencies.

Publish0x

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.