Since inception of altcoins there has been lot of Ponzi schemes and new websites offering 1-2% daily interest on the most popular top crypto coins and really nothing has changed in last few years. Due to nature of these small sites which rely heavily on great referral systems they have been able to amass nice sums and been profitable - most of the time getting away with fraudulent behavior.
How to Detect a Pyramid / Ponzi schemes?
- No transparency on actual team running the project, always look for linkedin pages and real professional profiles of team members
- No clear explanation how the profit margins are made, always run the math what is actually plausible ROI % for each coin, based on whatever there is staking or node rewards involved.
- Fake certifications on the website (site claiming they are secured and trusted by XYZ sites)
- Unrealistic profit margins
- Website/Domain Age
Usually these websites stay around 30-45 days max and then pack their bags and run off with the money, that being said with like every HYIP you can still make money if you join in early and manage to invest the right sum before exit scam actually happens.
As of making this article the website is no longer up, meaning that exit scam probably has already commenced. The site was promising up to 1-2% returns per day on the investment. Claiming that it uses PoS pools, but the reality is that coins like Tezos have max 12% yearly gain meaning that there is no way you can sell bitcoin/litecoin/dash into Tezos and give people even half % per day.
Common sense has to be applied into thinking when dealing with these type of sites, you can max get ~8% yearly ROI on Bitcoin on some specific sites, but thats the absolute limit ceiling right now.
- I recommend checking my other video where i break down best investing platforms (native and defi) here - https://www.youtube.com/watch?v=BBz362dH37k
