In retrospect to 7 months ago, I wrote a steemit post see : Bitconnect a legit program or HYIP Scam for Bitcoin and Cryptocurrencies about the dangers of bitconnect including the dangers of falling for such Ponzi schemes -fast forward to this week, the reality is showing itself. The internet, unfortunately, is fraught with hundreds of crypto and revenue sharing, HYIP (high yield investment programs) Ponzi scams that are too good to be true-however why are they popular? Here are some few points:
Commission junkies: Bitconnect, for example, is being promoted by top YouTube’s and some top steemians because of thousands of dollars they make daily from their referral links . In fact they even advertise their links on coinmarket cap, steemit posts, face book and youtube et al signing up thousands of disciples in need of quick money and those people signing up other new people leading to chains of future losers (note that they are not committing any crime and never force any one to sign up rather greed is the motivation of all ) however:
Losers and winners: those on top just like any other Ponzi, pyramid and HYIP make the big money while new members lose all because their money sponsors those on top. This is true in HYIP Ponzi schemes like MMM , MPCA/MPA , The Ads Team et al which couldn’t pay members daily revenue and thus have to shut its doors, why?
Unrealistic business model: Any business based on referral / commission ie signing up new people to succeed and promising unrealistic returns -is a PONZI scheme and should be avoided .
According to Investopedia, a Ponzi scheme is a dishonest investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. Moreover, the first well known Ponzi scheme was coordinated by Charles Ponzi in 1919 –read here for more.
**Avoid too good to be true: ** any business or person promising you too good to be true return is a scammer (pls do your due dilligence) and this is true of HYIP Schemes like Bitconnect -which never last more than 2 years max . Rather face reality by joining steem, powering up your steem see my former post for details and search for the next best thing an example is Ethereum lyte (Elyte) (see link for their current bounty , join and get free elytes here: https://docs.google.com/forms/d/1FEonw5FIRlIPmUEZw1hkS2WsbZS8ZykyzuIbcYmDmEw/edit#responses and direct link to their current crowdsale : https://main.elyte.biz/?page_id=433 ) which are positively changing the lives of many people due to their solid business and corporate strategies that are based on future value of your investments.
Do you agree? Send in your comments and or suggestions. Upvote and resteem in order to send in your support.
See my former post : Warning! Cryptocurrencies ( Steem , Elyte.io, Bitcoin ) Are Not For The Faint-Hearted
Hey guys, heard about this new upcoming coin called Ethereum Lyte (ELYTE) , so far price has shot up over 2K% in just a few weeks- even as they are yet to be listed on Coin market cap (coming soon), seems like it might be a real good investment for the future. What are your thoughts?
Elyte website: https://www.elyte.biz/
Telegram : https://t.me/joinchat/E6tXj0dThqzzjVlWJRuxLw
Facebook: https://www.facebook.com/groups/208043153099723/
Twitter: https://twitter.com/EthereumLyte
Linkedin : https://www.linkedin.com/company/ethereum-lyte-elyte/
Bitcoin Talk page : https://bitcointalk.org/index.php?topic=2618851.new#new
Reddit : https://www.reddit.com/r/EthereumLyte_ELYTE/
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