One of the more curious developments in the crypto currency world is the emergence of all kinds of scams and ponzi schemes that are leveraging digital currencies. They usually take the form of what are called Passive Profit Programs or High Yield Investment Programs or Investment Programs but be warned that most are likely what you’d call a SCAM.
How do you typically identify a crypto currency SCAM?
- They offer returns that are too good to be true
- They have no way to be contacted in person
- They do not identify their founders
- They have a lot of people asking if they are a SCAM
- Their business model usually includes MLM or Multi-level Marketing
- They have an affiliate program that promises ridiculous bounties for referrals
- They look like other sites before them that have previously shut-down and exited with peoples money.
Having said all this what you will notice is that people are investing with them anyway. Why? Because you have all kinds of promoters and youtubers showing how much money they have made. So human nature being what it is — most people think if they find the SCAM early enough they can ride the wave for a period hoping to exit before the scammers make their exit.
Then there is another class of services called Copy Traders that sometimes get lumped in with this group that you can read more about here.
So I have no idea if these programs are scams if you decide to test them out conventional wisdom suggests you should use money you can afford to lose. Some people don’t get started with their own money but just focus on the affiliate programs.
INVESTOR BEWARE! THIS IS NOT INVESTMENT ADVICE CONTENT IS STRICTLY FOR INFORMATIONAL PURPOSES. GO IN WITH YOUR EYES WIDE OPEN. DO NOT INVEST MONEY YOU CANNOT AFFORD TO LOSE.
So why are people tempted to test these programs? Because they all over some variation of the following.
You invest your money for a term and they give you daily interest on your money. That interest is usual a ridiculously high daily percentage anywhere .5% -7% or 8% daily and then at the end of the term you get your full investment back. The only problem is that people have no idea if these companies will last the full term or abscond with peoples crypto or fiat currency.