What are the Common Signs That Help Investors Recognize Cryptocurrency Ponzi Schemes?
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They assure you that you will be able to break even in just about two to three months, which is a clear signal that it is a scam.

Cryptocurrency Investment Programs

Here ponzi scheme involves a proprietary and secret arbitrage or trading arrangement where you will be provided a share from the returns. You are promised high rate of interest such as 1 to 3%.

Scam Coins That Pose as Altcoin

Crypto Investing? The Blockchain Cryptocurrency Ponzi Scheme Explained from r/Freethought

Many are interested in Bitcoin but understand that they are too late to do so. This fact is utilized by scammers to lure investors into investing in scam coins. They claim that their altcoin is an improved version of Bitcoin which will start doing well soon enough.

These altcoins (or scamcoins) have shoddy whitepapers which are used to fool people and to show a roadmap about how much their altcoin will increase in value through coin splits and IPOs rather than through serious development work.

ponzi scheme

Moreover, these altcoins do not have any public blockchain and usually the trading occurs internally inside ponzi’s network of websites. Lastly, these are closed source which means their code is not available for any kind of public review.


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