Crypto Currency Schemes – the gold rush of online scams

 

We’ve all seen the facebook posts alerting us to various crypto currency schemes which will make our fortune if we only get in early: e-dinar coin, onecoin, s-coin, leocoin, GCCCoin… etc etc. We’ve been reminded that if we had invested $0.01 in bitcoin 7 years ago we’d be multi-millionaires now and that this scheme and this ‘coin’ can do the same for us so JOIN MY TEAM HUN! SIGN HERE!

The trouble is, they’re scams.

The crypto currency market has a few things going for it that make it the perfect subject for a scam:

  1. It’s buzzy, exciting and there are proven examples of people having made a killing previously (bitcoin)
  2. It’s pretty complicated to understand unless you are an expert with lots of crypto-trading experience. The schemes play on this (like MLM comp-plans!) by using deliberately oblique and technical terms. They’re not targeting experts who would ask tricky questions & see right through them, rather they’re aiming to befuddle the average person
  3. Crypto currency markets are not regulated – it’s like the Wild West out there
  4. There’s no physical product, so no investment required by the scheme founders in stock, warehousing, shipping etc. No, it’s just imaginary unicorn ‘coins’
IMG_5763
Yay huns! Magic Unicorn Money!

Most of the schemes have all the hallmarks of a classic ponzi pyramid: the returns & bonuses of existing scheme members are funded entirely by new members paying into the scheme – in this case ‘buying’ ‘coins’. The returns being promised are RIDICULOUSLY high – 21% growth per month for e-dinar for example. This alone should set alarm bells ringing. The crypto-trading average is about 3-5%, if you are an experienced trader who is having a great run of luck.

And then in true MLM style, you are incentivized to recruit. Gotta keep that money coming in!

To our knowledge, the e-dinar coin scam has at least one convicted fraudster behind it, and has already left a first wave of investors with coins devalued and worth around 10% of the value originally invested. E-dinar also uses paid-for advertising & fakery to make it appear that they have been positively written about in the business press (they absolutely haven’t).

So where does this all leave our enthusiastic facebook recruiters?

Well firstly, if you are recruiting into one of these schemes you are stealing. Morally it’s a simple as that. The people underneath you are paying for any money that you make.

Secondly, these e-dinar coins that you’ve been buying for $1 are worth a fraction of that on the open market. And the value has been steadily collapsing since the currency launched. Outside of the scheme, there is no way you can recoup your investment. So you need to trade within the scheme… or convince your downline to buy them off you so they take the hit. Again: if you do that, you are stealing.

Thirdly, if you do try to withdraw your unicorn coins, don’t be surprised if it’s difficult to do so. There might be a ‘problem’ with your e-wallet. A ‘security breach’ maybe. Or a ‘software update’ might take the site down if large numbers are trying to withdraw. That’s because your money isn’t there. It doesn’t exist. It’s crypto smoke & mirrors and the scheme organisers will stall and lie and stall and lie to try to postpone suspicion.

There are hints already that the e-dinar fraudsters are getting ready to cut & run: terms & conditions are being changed so that it’s almost impossible to make the promised 21% return (leave your computer running 24/7?) and team leaders desperately trying to off-load currency & cut their losses whilst ostensibly trying to maintain the appearance that EVERYTHING IS JUST FINE HUN.

And finally, because the crypto currency market isn’t FSA regulated, you won’t be getting your money back. And neither will the people you recruited.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s