This is an excellent video on what a ponzi scheme looks like and how they operate. Typically, they are easily identifiable and yet millions still fall for them every year. Especially crypto investors, who seem to be the easiest targets in history for scams.
With the speed of money increasing, the speed of information reaching levels that no one can keep up with, and the ability to put out propaganda at record pace, these will continue to pop up. The ICO schemes of 2017-18 have died down, but there will be another form coming to take its place.
Why do people fall for crypto scams?
Its inevitable. There is a lot of money available. Investors who have an innate desire to become wealthy can be found everywhere, and a portion of those can be duped by persuasive and engaging personalities like this.
This is simply the tip of the iceberg in cryptocurrency scams. These Ponzi schemes exist on a smaller level all around the world. BitPetite, BitConnect, and more are among the largest.
But smaller scams taking in sums of $500,000 to a few million proliferated over the last few years as well. They just fall under the radar of regulators, who don’t have enough personnel to keep up or don’t have jurisdiction in the countries where the scams are located.
Crypto isn’t the only place for scamming
There are certainly many high profile business scams over the years. Bernie Madoff, Enron, and most recently Elizabeth Holmes and Theranos. What do they all have in common? An engaging personality acting as the front person for audiences to see.
These people have an innate ability to drive others to believe regardless of what real data may indicate. And sometimes the data isn’t available to the general public. The truth is shrouded in secrecy and deflected by PR campaigns designed to disprove any criticism. No one does that better than Scientology, of course.
I’m surprised we haven’t heard much about their church getting involved in cryptocurrency fundraising ventures. But perhaps they already are, since they do a perfect job of covering up everything.
How can I avoid scams?
First, familiarize yourself with all the different forms that cryptocurrency scams can take. Always remember if it sounds to good to be true, then it’s probably a scam.
If you decide to invest in cryptocurrency, stick with the known companies that are working on networks and products. Avoid the get rich quick promises. Avoid new projects that promise to change everything. They might, but you can wait until they show signs of succeeding before putting any money into the project.
Always remember, no one cares about your money as much as you do. Protect it as if your future depends on it, because it does.