Scammers use many ways to get others crypto coins and some of them are
Fake ICOs invite people to get into a newly created coin which will be a big thing in the future. These are tricky because the creator he himself does not know that they are peddling junk. It’s better to avoid ICO scams by exactly knowing what you’re getting into each time. It’s you who has to decide for yourself whether a new coin has the potential to take off and whether the developers know what they’re doing. If you don’t have the know-how to make a judgment, you should probably avoid all ICOs.
How does bitcoin Ponzi scheme works
When someone offers an opportunity promising that there are hundred percent incredible returns on their money then it’s a bitcoin magic. A lot of people get involved and buy and then someone runs away with all our money.
At first, it appears as it works. There will be an increase in the number in your account as promised and someone would come out and talk about its working process and changed their life
But when you actually try to get your money back you will find that the “customer service” is not responding or there might occur technical issues and many more excuses and they will end up saying the money will very soon the returned.
Bitpetite Bitcoin Ponzi Scheme
Bitpetite is claimed to be a bitcoin tumbling scheme. Tumbling is a service that hides up the origins much like how bitcoin money laundering works but Bitpetite is not really a tumbler.
It promised an incredible return of 4%per day of people’s money, explaining that it needed a flow of fresh bitcoin to tumble, and in return, it gave you the 4% commission which is charged for the service.
The scammers organized a social media and advertising campaign to attract the new users and they even had an idea of offering tumbling services and also provide different professional looking investment packages.
How to avoid falling for a cryptocurrency Ponzi scheme
- All that glitters are not gold
Think well whether the promised returns are really long lasting, and what the numbers actually mean. If it seems too good to be true, then probably it is.
- Research on your own
If it resembles the Ponzi scheme, its best to avoid it – especially if there are hundreds of people who agree. Some legitimate services might be accused of being a scam, while some scams might go undetected for a while. When in doubt, don’t spend any money that you can’t afford to lose.
- Check for the signs of legitimacy
Check whether the company is a registered corporation, and check whether you can identify the owners. Scammers are anonymous.