Ponzi Schemes, Crypto Investment Scams. (USI Tech, Bitconnect, Coinexx.org)

if you don’t believe something like that
could happen
so this episode of crypto
scam watch is a bit different in that
it’s not primarily about technical ways
that people might breach your security
steal your private keys or somehow
infect your computer with malware but
rather looking at general investment
scams that dressed themselves up using a
language associated with cryptocurrency
and if you haven’t already done so hit
subscribe and that way you can be kept
in the loop about content I make to help
you navigate and find your way in the
crazy and often hostile environment that
is crypto currency if you’ve never heard
of a Ponzi scheme essentially they
collect money from a whole bunch of
people and rather than investing it and
paying out like dividends or something
like that they will actually use the
money collected from new investors to
pay all of the existing investors to
make them think that they actually have
real and proper investments and that’s
why you find quotes like this one where
people say you know it’s hard to believe
it’s a scam if they’re paying you
because unlike scams that simply robbed
you that I’ve looked at in previous
videos a Ponzi scheme will actually pay
out real money and real returns to
people who are in the scheme Ponzi
schemes will often have a loyal base of
supporters and there might be a lot of
people trying to say very positive
things about them on the web on social
media and they may even have public
events and rallies that they’re running
to try and recruit more people into this
scheme perhaps the biggest tragedy of
these Ponzi schemes is the way that they
take advantage of people’s family their
friends and colleagues encouraging
people who are part of the scheme to
sign them up too – meaning that when the
whole thing comes crashing down not only
have people lost all of their money but
also they’ve caused their family friends
and colleagues to lose all their money –
and have to live with that guilt so what
are some of the things to look for well
firstly an over-the-top sales pitch
run as fast as you can from anyone who’s
trying to sell you something with the
amount of enthusiasm this guy has
guaranteed returns are unnaturally
consistent and unnaturally high are a
huge red flag
nothing to look for is schemes that seem
to offer
secret or new or special sort of
investment strategies or technologies so
USO Tech basically claimed they’d
automated trading platform where you
just basically give them some money and
their system will just magically invest
that and trade that in a way that would
make you a profit another big one is
secret or new investment opportunities
that seek you out a lot of these Ponzi
schemes actually have like referral
programs built into them where they’re
paying people to promote this investment
generally speaking unless you’re an
ultra high net worth individual that’s
someone who’s already worth millions and
millions of dollars non scamming
investments are generally not in a come
looking for you
any investment crypto or not that seeks
you out is probably a scam another big
thing to look for is vague or absent
explanations about how exactly this
investment will work if people just you
know throw a few technological buzzwords
in there that really make no sense to
you don’t have good information on
websites or other things that can help
you to understand what you’re investing
in that is a huge red flag
another common one with a lot of these
Ponzi schemes is a pressure to keep
investing more money encouraging people
to say hey look if you just invest more
if you just double your investment
you’ll get double the return and just
pressuring people to either keep pouring
more money into the platform or making
all these disincentives to prevent you
from going to pull your money out the
point with all of this is that
cryptocurrency is unfortunately the
perfect veneer for a lot of these scams
in that for a lot of people especially
those new to the space cryptocurrency is
hard to understand it’s a complicated
technology that’s completely new to them
it’s something they might have read
about and heard about the crazy returns
that some people are getting and you
know all the talk of Lambos and things
going to the moon really doesn’t help so
how to stay safe well firstly have
realistic expectations
for the kinds of returns that
investments should give you so if you’re
not even sure what constitutes realistic
returns for an investment what I’ve got
here is actually just an example which
is the S&P 500 so that’s essentially the
top 500 companies on the New York Stock
Exchange the S&P 500 has done really
well for last couple of years and is
generally considered the kind of
benchmark that’s actually really
difficult for any investor to
consistently beat over the long term so
if you’ve got an investment that seems
to be offering you five times 10 times
20 times the S&P 500 then you need to
really be asking some serious questions
about whether it’s a straight up scam
another way to stay safe is not to
invest in things you don’t understand
and a lot of people apply this logic to
shares and other investments too and
what to do if you spot a scam you can
contact the law enforcement in your
country or the Financial Regulator in
your country but again if it’s a scam
that’s online or overseas there may not
be much they can do about it other than
perhaps issue a warning for others
thanks for watching I hope that was
hit like if you think that other people
would find this video useful and hit
subscribe if you’d like to be kept in
the loop about future content I make
that helps people stay safe in the
crypto space and to recover if they get
into trouble if you have any questions
about this video or a topic that you’d
like me to cover just leave a reply

Leave a Reply

Your email address will not be published. Required fields are marked *