Now that We have entered Crypto Spring and Crypto Summer is already on our doorsteps, the worms have started coming out of the woodworks in the form of Ponzi Schemes.
Some very crafty individuals have already figured out that most people don’t know what the heck Bitcoin is so they use this knowledge gap and Bingo! A pseudo-investment program is formed.
This is known to happen especially in Developing Countries where many don’t even have any knowledge of technology.
This is why every time the Cryptoverse is on the move, Ponzi schemes are also on the move as well!
And it doesn’t bode well for real investments in Cryptocurrencies and blockchain technology as when such programs go bust as they usually do, their bad reputation is left on the genuine cryptoshpere and most people when they even hear about Bitcoin or other cryptocurrencies won’t have the confidence to understand or even use cryptocurrencies in the first place.
Common Features of a Crypto-Ponzi Scheme
The following should serve as pointers to Ponzi schemes:
Technical Language Overkill
Most crypto scammers understand blockchain technology but their targets don’t have a clue.
So, they use this to their advantage by confusing their targets with the technical terms.
They do this to show their targets their expert knowledge and legitimacy.
Reliance on Seminars
While there are many legitimate investment programs out there, The Crypto-Ponzi Schemes always use seminars heavily.
Slogans such as: “Wealth Creation Seminars through bitcoin mining” and others similar to this always happen to be what they use.
This is because if anyone is invited for a free seminar, the audience’s mental defenses come down and the emotional allure of instant wealth comes to play.
They offer Fantastic Returns in the Shortest Space of Time for Doing Nothing
While the Crypto Space does indeed offer fantastic returns if you actually know what you’re doing, these programs also offer such fantastic returns in the name of either cryptocurrency mining or trading.
All the people always have to do is to log in place a deposit and then wait for their monies to return to them after a period of time.
Such Programs Always put the Targets Under Pressure to Invest
During such seminar presentations, the seminar presenters always put pressure on the audience using phrases such as: “invest today while this opportunity lasts” or “don’t miss this chance to become rich!”.
After showing flashy presentations depicting how wonderful the rich lifestyle is, they show people that there is an easy way out if a decision to invest is taken immediately.
These Programs Almost Always Overcrowd their Founder’s Pages to indicate Legitimacy
If one were to place a visit to the websites of such programs the founder’s pages are always crowded with so many kinds of achievements all in a bid to achieve instant legitimacy.
This is always done to show how much the program can offer and why the founder started the program (most always mention altruism, benevolence or something similar).
Use of Social and Religious Groups aren’t Uncommon
Churches, Mosques and other religious and social groups always tend to be the targets of such scammers.
This is because most people tend to trust their religious and social groups.
As such, anything coming from those groups are indeed bound to be true.
Their Offers are Always too Good to be True
Ever see fantastic returns?
Out of the World, offers are for the most part what they appear to be: Out of the World!
Anything that is too good to be true usually is.
They are almost always never regulated
As new regulatory policies are now on the rise within different global jurisdictions, such programs are never regulated or at best they have one shady form of regulation or the other.
This, of course, is quite telling of the sinister motives of the founders.
Does this bring us to the Big question?
Are Ponzi schemes a threat to Bitcoin’s rise?
To this, I shall answer a resounding yes!
Ponzi schemes tend to erode the one thing which makes any technology to become a force: Trust.
Trust leads to adoption and vice versa.
If we have Ponzi schemes fleece people over and over again of their hard-earned monies, then Bitcoin’s price rise and the glory days will always have to contend with such programs.
However, hope is on the horizon as mass education and interest serve as a counterbalance to the scammers who wish to prey on the ignorance of many.
If it isn’t blockchain, it’s not the same thing as blockchain!
Always do your due diligence before investing in any program advertised to you!
Do you think that Ponzi Schemes are a threat to Bitcoin’s Price rise?
Please let us know in the comments below!