THE Securities and Exchange Commission against investing on Algoscalp, which claims to operate a fully-automated trading system of cryptocurrency, as it is not a registered company and its operations are likened to that of a Ponzi scheme.
The SEC said in its advisory that the company, which also uses the name “Algoscalp Auto Trading” or “Algoscalp Trading,” uses a scalping method of trading, a style that specializes in profiting off of small price changes and making fast profit from reselling.
Algoscalp claims that it gathers money from the public to fund its supposed project through initial coin offering on the promise of profits.
It also claims to be an operator of a system that allows the investor to trade the financial markets without lifting a finger. It uses a cryptocurrency called Algorand Blockchain that aims to be simultaneously scalable, secure and decentralized.
The company is enticing the public to invest in the said entity with a minimum amount of P200 with a promise of a 1-percent to 13-percent daily profit range for 22 days. An investor can also earn through direct referral of what it called an active trade, wherein the investor is promised to earn a 12-percent commission.
The SEC, however, said the claims of Algoscap “appears to be 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…
