Scamtastic

in #cryptocurrency • 7 years ago (edited)

When it comes to cryptocurrency scams, the underlying theme is always selling debt to those who are willing to pay. Below are 3 examples from the past, current and from the looks of it, the future...

The Past - BitConnect (BCC)

What you think it is:

  1. Send your Bitcoin (BTC) for Bitconnect tokens (BCC).
  2. Bitconnect lends your money while earning interest in BCC on your behalf.
  3. Make sure you invite your friends as referrals increase your return rate.
  4. Upon maturity, convert your BCC investment + 40% returns back to Bitcoin and win!

BitconnectEarnings.png

What it is:

  1. Send your Bitcoin (BTC) to Bitconnect for Bitconnect tokens (BCC).
  2. Enjoy your worthless tokens while we take the money and run.

DumbnDumberIOU.png

The Present – Ponzicoin (SEC)

The Joke

  • “The World's First Legitimate Ponzi Scheme”
  • Use Ethereum to buy ERC20 tokens and hope you were first in to be first out.
  • Shrill and scam everyone you know. The sooner you get to 300 tokens, the sooner you get cashed out!
  • Seriously, THIS COIN IS A SCAM! It’s clearly stated EVERYWHERE on the website!!!


PyramidScheme.jpg

The Reality

  • People actually invested in it… like $25,000 worth.
  • Stopped being funny, Developer shuts it down.


AtFirstButThen.jpg

The future - Bitfinex

  1. Bitfinex exchange got hacked out of 120,000 bitcoins.
  2. Convert losses as Bitfinex tokens (BFX)
  3. Created Tether (USDT) in November 2015
  4. After slowly paying off losses over 7 months, Convert BFX for USDT in August 2016.
  5. Create Bitcoin Gold (BTG) in October 2017
  6. Fork = Same address & same private key = PROFIT!
  7. Tether loses their auditor.


facedesk.jpg

Please do your research before investing.
Be vigilant and stay safe.

#bitcoin #money #blockchain #ethereum
7 years ago in #cryptocurrency by
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    • [-]
     7 years ago  

    Coins mentioned in post:

    CoinPrice (USD)📉 24h📉 7d
    BCCBitConnect7.590$-22.78%-58.81%
    BTCBitcoin11583.900$-1.02%-1.03%
    BTGBitcoin Gold188.782$-1.4%-10.91%
    ETHEthereum1216.550$6.14%14.39%
    USDTTether0.985$-0.56%-2.05%
    [-]
     7 years ago  

    Ha, didn't know about Ponzicoin. I don't know if something can be a Ponzi scam if the people were adequately informed lol. Let's see, according to wikipedia

    A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading.

    And fraud is "deliberate deception to secure unfair or unlawful gain". So, if there was no deception on the part of the creator then I don't think it is actually a Ponzi scheme!

    [-]
     7 years ago (edited) 

    While it is not "fraud" because the terms are clearly stated, it is also not a "legitimate business activity" because the whole business plan is to profit off of those who just joined.

    Other than this, there is no other source of profit or revenue to be generated and unless the creator decides to conjure up a unlikely alternative revenue stream, this is one of the most transparent Ponzi schemes ever.

    Having said that, I now worry if scam artists will implement these ideas.