How to Spot and Avoid Ponzi Schemes

CANVA

Protecting Yourself from Ponzi Schemes and Scams

As Crypto world is rising and becoming more popular among the people in the same way fake and ponzi schemes are also rising. Ponzi investment projects are surrounding everywhere looking to scam people and take their money. What should we do and how to identity that investments schemes are ponzi or not. In this post I am going to shed light on this topic and will try to expand it for you guys.

One of the thing that we all keep in mind is that every ponzi project offers you high returns and promise to pay you on daily basis. They promise high returns such as 360% APR and something like this. They mainly give APR calculation on monthly basis such as they offer 30% profit per month which looks charming and attract investors in this way.

They have non real investment which means that their project and business does not exist. They dont have clear location of their business and the website they make is much rough. There will be spelling mistakes and grammar mistakes and the website finishing is not good.

They really pay early investors with the same percentage they promise. They keep on paying early investors making other believe about the payment. Once they found enough investors who join the fake project then they stop paying everyone. They pay in the start to build investors trust on their project so to make them fool and take their money.

They never ever define their business income and from where they earn to pay other investors. Their vision is not clear and they discuss irrelevant business income from where they are earning. They dont give the detail of their business income in their websites which is the clear identification that the scheme is ponzi and fraud.

Another benefit they provide is that those who promote the project and bring more investors in the project will be compensated. They will be given referral commission. Till then investors keep on joining the ponzi investment project they keep paying their investors and pay referrals what they promise. But soon when they understand that investors are no more joining then they close their project and take all investors money with themselves.

So, for all investors I am raising red flag to be cautious and attentive regarding these projects. These fake projects will take your money and give you with nothing. Therefore, it is advised to all you guys to research thoroughly before investing to any kind of such project which is totally fraud.

THANK YOU!

Posted Using LeoFinance Alpha