Scams In The Cryptoworld.. What You Should Know #004

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Hello crypto friends,

It is another beautiful day today and I am happy to come before you all.

I believe you are all doing perfectly okay and are enjoying your activities here in tron fan club, it is a very great community.

In one of our discussions, we learnt on some types of cryptocurrency scams but we were unable to conclude our discussion.

Today, we shall continue and consider some other forms of cryptocurrency scams available, please stay tuned:

• FAKE INITIAL COIN OFFERING (ICOs):

A fake ico can be explained to be a cryptocurrency scam where by an individual or an organization develop and advertise a cryptocurrency project as an ICO with the intention of not delivering the actual product or service.

The intention of this kind of practice is simply for the purpose of scamming investors and defrauding them of their money.

In a legal ico project, an individual or group of individuals searches to raise funds for a new cryptocurrency project by offering some tokens to interested investors based on the amount of money they invest.

These tokens usually stand as a stake in the project and they can be traded in different exchanges once the project has been launched.

Whereas in a fake ico operation, the scammers makes use of other cryptocurrency hype to their benefit and attract unsuspecting investors.

They design a whitepaper, a website, and other marketing materials that appears to be original and legal to the public, all with the aim of attracting investors to the platform.

Once the investors are convinced about the project, they are requested to send in their investment in form of a popularly accepted cryptocurrency and then the scammers will do away with investors funds.

• PYRAMID SCHEMES:

A pyramid scheme is another form of fraudulent business formats, in which investors are promised a huge amount of money, strictly based on referrals.

This business model comes with the approach that you are going to sell a product but in reality you can only earn by introducing others into the business platform.

The pyramid scheme is usually named after a pyramid shape based on it operation model.

We have a few individuals at the top, the earliest investors and then as the business expands we have other recruits.

Here, you don't sell any legitimate product and without referral, you cannot grow your income.

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CONCLUSION

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It is really cold out there in the world so we need to be extra careful so as not to fall victims to cryptocurrency scams or any other type of scams