Look out for red flags in crypto Ponzi schemes to save cryptocurrencies in digital wallets
Though popular cryptocurrencies are flourishing in the highly volatile cryptocurrency market, crypto traps are increasing at an increasing rate to incur losses in digital wallets. Crypto investors must be aware of multiple crypto Ponzi schemes to eliminate the chances of losses in digital wallets. Yes, it is speculated that the top cryptocurrencies are a kind of Ponzi scheme to attract the eyes of crypto investors. Let’s explore how to be careful from getting into the traps of crypto Ponzi schemes in 2022 and gain profit in a seamless way.
What are Crypto Ponzi schemes?
The cryptocurrency market got a term known as crypto Ponzi schemes from a crypto company, Ponzi.io, in 2014. The crypto company had promised all crypto investors 1.2 times the returns paid in Bitcoin on deposits including 0.0001BTC. But it was false and deceptive marketing. It is a speculation that cryptocurrencies are not just a bad investment but also the worst bubble of fraudulent activities. A Ponzi scheme is known as a zero-sum enterprise with a negative-sum phenomenon with high volatility.
In January 2022, a Bitcoin pyramid scheme has wreaked havoc on ‘New Egypt’ of Brazil. The pyramid scheme owner had a minimum of US$7 billion from 2015 to 2021 in the form of a Bitcoin Ponzi scheme with a promise of 10% monthly returns to digital wallets of crypto investors. The federal and state police and prosecutors got…
