There’s an old saying that goes, “a fool and his money are soon parted.” The phrase originates from the Book of Proverbs, which states in chapter 21, verse 20, “There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.”
I’ve been thinking about this concept a lot recently. As you are aware, the BitConnect ponzi scheme — the most prominent of the crypto scams — collapsed last week. Supposedly, BitConnect will reimburse everyone who lost out, but so far, I’ve yet to find definitive proof that this is the case. Even worse, some people on the blogosphere are defending this scheme.
It’s time that we all wise up to the crypto scams because BitConnect is only the beginning.
Currently, Falcoin coin is the most popular lending exchange platform. You would think that after so many crypto scams have been exposed, people would wise up. Plus, it’s not just BitConnect; Hexabot, Coinreum, BTC Hash, Chain Group, and several more have stopped their lending programs and their “guaranteed” payouts.
Perplexing is the fact that Falcoin coin doesn’t bother to distinguish itself from all other crypto scams. Falcon coin has the same pitch — we have a trading bot that extracts massive profits. From this fortune, we can guarantee daily payouts. More ridiculous, though, is Falcoin coin’s promise of paying 48% monthly returns…gullible much?
Next, we have Davorcoin, or as my friend put it, Devourcoin. It’s the same Ponzi scheme. Trading bots, massive profits, daily payouts. The biggest problem I see with Davorcoin is that its website is mostly written in French, which suggests that if American investors get screwed, they’re up a creek without a paddle.
I think the biggest of the crypto scams is USI Tech. If you did just modest research, you’ll find that USI Tech is headquartered in Dubai…Dubai! Given the current geopolitical climate, I have zero interest in putting any money into the Middle East. Moreover, we have the same problem as Davorcoin: no recourse if things go sour.
And believe me, things will go sour. The only saving grace, if you want to call it that, for Falcoin coin, Davorcoin, and USI Tech is that they haven’t been caught by regulatory authorities. Once they do, though, it’s game over.
Take this to heart. The only people that profit from Ponzi or pyramid schemes are those who got in at or near their inception. Chances are, if you learned about a lending program randomly surfing the internet, you’re not at the top of the pyramid!