THE Securities and Exchange Commission (SEC) has warned the public about AlgoSCALP, an automated trading system, which has been soliciting investments without license or approval from the regulator.
“AlgoSCALP, AlgoSCALP Trading, or AlgoSCALP Auto Trading claims that it is a fully automated trading system, and that the provider will place buy and sell orders for the investor, allowing the investor to trade the financial markets without needing to lift a finger,” the SEC said in an advisory.
“Further, it claims that it is a crypto-currency of the Algorand Blockchain that aims to be simultaneously scalable, secure and decentralized,” it added.
AlgoSCALP uses “scalping” or a trading style that specializes in profiting off of small price changes and making fast profit from reselling, the SEC said.
The corporate regulator said that the trading firm is enticing the public to invest with a minimum amount of P200, with an assurance of a daily profit range of 1% to 13% for 22 days. An investor can also earn through direct referral of “active trade.” In every active trade, an investor earns a 12% commission.
The commission declared the claims were “too good to be true,” with indications of a possible Ponzi scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the company’s profits similar to those already flagged as scams.
Based on the records of the SEC, AlgoSCALP is…
