Welcome back,
In today's blog as you can read i am going to talk about Scams in the name of Blockchain Technology happening in the world. We will learn about what are these scams and how to be safe from such scam.
So let us understand what are Scams in the name of blockchain technology.
What are Scams in the name of Blockchain?
Recently in my country it was being observed that there were number of people running their projects that was actually a multi level market scam. As people in today's world are well aware about how MLM are most probably scam these people have been running MLM in the name of blockchain technology.
Now the question arises how are they running an MLM scam behind blockchain technology ?
Well what these people do is that they sell blockchain technology and do not mention anything about the MLM. They come up with a scheme where people will earn a particular interest based on their token holdings.
So what these project runners do is that they ask people to buy their tokens and hold/lock it for few months to few years so that they can earn maximum profit. People who don't have enough knowledge about blockchain and crypto currencies gets trapped in this schemes.
One thing that i would like to mention is that, these people don't let their token holders hold the token on any particular exchange but on a particular exchange wallet that is created and controlled by them itself and people blindly do this as they will only get to earn through this way.
Now let us understand how the Multi level marketing is implemented by these scammers.
Implementing MLM in these scams
Now once a user joins their project, buys the token, and start earning interest every month. They are shown different ways to increase their earnings and one of these ways is to refer their friend or a person to join the project using their link.
They have earning levels upto 20 so that means even the 20th person in the chain who joins will give some profit to you.
Here is how their plan works :
You invest a minimum of 20000 indian national rupees.
They send you 5% monthly
minor percentage ( 5, 2, 1, 0.5 ... and son on ) for bringing in other people to the project.
On average a normal person will recover his/her money in 20 months of time and the project owners are likely to run away with all the money before this time is reached.
It depends on how many people have joined their scam. Sometimes there are more and more people joining at the end so they let the early adopters earn some extra money but there are countless number of innocent people that earns nothing and end up losing their entire money in these scams.
How to be safe from them ?
Anyone who is reading this, i can make sure that they will not get trapped in these scams if they follow what i will share below so lets start.
First thing that you should do is to educate yourself with the basics of whatever work you are trying to be part of.
You can learn about how crypto currencies work and what is blockchain technology very easily in present time from the youtube.
Read their tokenomics as that will probably expose them to the fullest.
Ask them questions, most of these scammers are unable to answer people who have good knowledge of crypto currencies.
Get yourself aware with Market Cap, total supply, and trading volume so that you can identify if someone is selling a scam to you or not.
Learn to use coingecko or any other crypto monitoring apps so that you can expose these scams.
Do your own research, this is something really important. Don't trust anyone and when i say anyone it means anyone.
So those were few points that everyone should consider atleast once. If you are educated about what you are doing you will save yourself from these scams.
Conclusion
To conclude, i would ask user to atleast start learning about blockchain and crypto currencies from good sources. Follow those who share about a projects from the crypto world and not those who ask you to invest and double or triple your investment in few days of time.
Lastly, if you see something similar to MLM just get away from the project becuase that is the trend in present time for scamming people in the name of crypto currencies and blockchain technology.
If anyone wants to ask anything they can do so in the comments below and i would love to answer their queries.
Thank You and stay safe from the scams that i have talked about in this blog.