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Top Cryptocurrency Ponzi Scams as of 2020

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Bitcoin ponzi

What is a Ponzi Scheme?

A ponzi scheme is a fraud in which early investors are lured with massive payouts based on how many people they invite into a business that is designed to cheat people.  You may have heard this many times before where certain schemes encourage you to invite 3 other investors promising a cut from their investments, generally considered a pyramid scheme (Multi-Level Marketing, MLM more technically).

Pyramid scheme in itself is not illegal as long as there are genuine products and 

services backed by the company.

Ponzi schemes and Pyramid schemes that are designed to fraud people are what cause heartache to many unassuming investors.

Luring people into such frauds has been much easier in crypto as the concept of digital currencies and technology is still in its early stages and very few have the knowledge of how it all works.

According to Chainalysis, Ponzi Schemes account for 92% of all scams in Crypto. And almost $4.3 Billion was lost in scams, ponzies and fake token sales.

Source: Chainalysis

Today we will look into some of the biggest ponzi schemes in the crypto market so far.

  • OneCoin – $4 Billion

OneCoin Scam

image.pngOne of the biggest Ponzi Schemes in Crypto by far which scammed $4 Billion from the investors. OneCoin was based in Bulgaria, led by Ruja Ignatova and Sebastian Greenwood.

Onecoin was advertised as the bitcoin killer and other crazy sales pitches which lured thousands of investors into it.  They even had grandiose events inviting the big wigs from the blockchain and crypto space which added much more ‘authenticity’ to their project.  There are many rumors about Ruja as being dead or having changed her appearance or having bought the corrupt authorities to hide her identity and many more. With Billions in disposable income, anything is possible.

BBC Panorama Investigates The OneCoin/OneLife Scheme

Follow the exposing of the OneCoin scam in Twitter: https://twitter.com/CryptoXpose BBC Panorama 12th February 2018 Investigates The OneCoin/OneLife Scheme

  • PlusToken – $3 Billion

plus token scam

PlusToken, another Billion dollar crypto ponzi scheme based out of China, which promised huge returns to its investors.

The project closed down exactly a year ago in June 2019 running away with $3 billion worth of Cryptocurrencies. 

PlusToken Ponzi Scam Steals $3Billion In Crypto

BLOCKTV’s Yonah Hochhauser reports on the PlusToken Ponzi Scheme, and how their offloading of funds is crashing the crypto market. ————– For more fi…

Later it dumped over 200K Bitcoin selling them Over The Counter(OTC) which was assumed to be one of the reasons for bitcoin price fall earlier this year during the March 2020 dump.

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  • bitconnect  – Excess of $2 Billion

Bitconnect Scam

Started in 2016, Bitconnect was a ponzi scheme that earned trust of thousands of crypto investors at the time and even ranked at the top spot with a $2.5 Billion Market Cap on CMC.

The investors of Bitconnect were strongly rooted in this project and many invested went out of their way to liquidate their assets to invest in Bitconnect.  Some even sold their homes or took loans against their homes to invest. 

People like Charlie Lee and Vitalik kept warning people to stay away from this project.  Their advice unfortunately fell on deaf ears.

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What is left of the project is just this crazy speech by Carlos Matos, which will forever be at the top of Crypto Memes list…Bitconnnnnneeectttttttttttttttttttttttttt.

WASO BEECONNEE

Carlos Matos from new york speaking at a bitconnect event, which is trying to explain that the cryptocurrency is not a scam and legit. here are some of the f…

This project closed its operations and was assumed to have lost its investors a staggering $2.6 Billion dollars.

Bitconnect took down a lot of YouTube influencers who shilled the project to its viewers with it.  Craig Grant, Trevon James and Crypto Nick were some of the top names that faced harsh criticism (not to mention legal repercussions and threats) post bitconnect scam.

  • Bitclub – $722 Million

Bitclub Network Scam

Started in 2014, Bitclub Network invited investments from the people in exchange of the shares of the company and even paid them incentives for getting new investors enrolled.

In December 2019, Matthew Brent Goettsche(37), Jobadiah Sinclair Weeks(38), and Joseph Frank Abel(49), were arrested for scamming their investors in the amount of $722 Million.

  • GainBitcoin – $300 Million to Billions

Gainbitcoin Scam

This is considered to be one of the biggest crypto scams to ever take place in India.  GainBitcoin lured over 8000 investors to deposit their Bitcoins into their pool in the hopes of high returns. 

The spearhead of GainBitcoin, Amit Bhardwaj, was arrested along with eight others in March 2018.  The scam was supposed to be worth anywhere between $300 Million to $5 Billion depending on the value of Bitcoin at the time of deposit (which varies significantly because deposits were all made at different times).

  • Elon Musk, Chamath Palihapitiya GiveAway Scam – ONGOING – Be Careful!

People caught up with the Vitalik Buterin giveaways so the scammers got more creative. They started using Elon Musk, Brian Armstrong, etc., for crypto giveaway scams that promise 10:1 return to lure gullible investors.  

Many new investors fell into greed and lost their money. Just one giveaway scam looted over $2 million, you can imagine what all of them put together might have raked.

Scammers are using all types of social media networks but prominently YouTube, Facebook and Twitter.  They are hacking popular YouTube channels, deleting the existing videos and replacing them with ‘fake live streams’ of crypto giveaways.

5000 BTC Giveaway by Elon Musk | Get Yours Now (Check description)

✅ For Giveaway: https://musk-live.com/ Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is a citizen o…

Telegram has also been a popular locale for these scammers.  

We personally reported such an incident with the fake Ren Community and fake Factom Group created by the imposters. 

Quick lessons from the scams:

  • Never give away your private keys
  • No one is giving free crypto (except Airdrops)
  • No one will simply multiply your crypto
  • If it sounds too good to be true – it generally is a Ponzi
  • Still seems good? Check with their official Twitter for more information

Stay safe and stay alert.

Thank you for reading and sharing this article. We appreciate you.

Don’t forget to subscribe to receive ONE email per week with critical blockchain and crypto updates and occasional freebies. Check all the amazing stuff our subscribers get for FREE.

Cover Image Source: “Bitcoin (BTC) Scam” by Infosec Images is licensed under CC BY 2.0

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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