Be aware of Crypto Ponzi schemes to eliminate losses in digital wallets!
Beware of Red Flags in Crypto Ponzi Schemes to Save Cryptocurrencies to Digital Wallets
Although popular cryptocurrencies are flourishing in the highly volatile cryptocurrency market, crypto traps are increasing at an increasing rate to lead to losses in digital wallets. Crypto investors should be aware of multiple crypto Ponzi schemes to eliminate risk of losses in digital wallets. Yes, it is assumed that major cryptocurrencies are some sort of Ponzi scheme to catch the eyes of crypto investors. Let’s explore how to be careful not to fall for the traps of crypto Ponzi schemes in 2022 and earn profits seamlessly.
What are Crypto Ponzi Schemes?
The cryptocurrency market got a term known as crypto Ponzi schemes from a crypto company, Ponzi.io, in 2014. The crypto company promised all crypto investors 1.2 times returns paid in Bitcoin on deposits, including 0.0001 BTC. But it was false and misleading marketing. It is a speculation that cryptocurrencies are not only a bad investment but also the worst bubble of fraudulent activity. A Ponzi scheme is known as a zero sum business with a high volatility negative sum phenomenon.
In January 2022, a Bitcoin pyramid scheme wreaked havoc on Brazil’s “New Egypt”. The pyramid scheme owner had a minimum of US$7 billion from 2015 to 2021 in the form of a Bitcoin Ponzi scheme with a promise of 10% monthly returns on crypto investors’ digital wallets. Police and federal and state prosecutors have got their hands on a sophisticated racket, focusing on thousands of small crypto investors.
Meanwhile, this is not just the case with crypto Ponzi. There are more than five times that crypto investors have fallen into crypto traps through the implementation of blockchain technology and suffered losses in digital wallets.
Although the global cryptocurrency market offers a plethora of opportunities to make profits in digital wallets, one should be careful about the innovative nature of crypto traps. It is very easy to lure crypto investors with the promise of higher ROI through imaginary crypto businesses.
Beware of Red Flags from Crypto Traps
- Risk-free crypto investment with higher and faster ROI
- Complicated business models to understand with the presence of external companies
- No access to attested documents to prove the legitimacy as well as the existence of the company
- Too good and profitable investment opportunities with fake testimonials
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