Scams In The Cryptoworld.. What You Should Know #006

jueco (76)in Tron Fan Club • last year

21PRtjKRXPQybj4WUXScWv5QPLninWRxfbcWNsx7SenD7FnTFRiR3reeqDFM3o7JKYSriA1FyDosDc4GMEJG4pUxs8h4T6JjMWvsoKSYa6xHhxe1sxRG3NGpVhcs9sguTDsC7HAV1NtvEAXLDz4nJtf.webp
Source

It is another beautiful day friends and I am happy to be here before you all today.

I trust you are all perfect, doing the needful in the community and contributing to the growth of the community.

Today, we shall continue our discussion on the different types of formats being used by scammers to scam users of their hard earned money.

Without wasting any more our time, shall we proceed to the discourse of the day:

MULTI-LEVEL MARKETING SCAMS:

A multilevel marketing scams can be explained to be a type of scam that appears in a business model, whereby the founder of the scam focuses on recruiting more people into his business to become participants/distributor of his schemes rather than offering any relevant service to him.

This type of business is usually founded on the promise made to recruit that they earn an income through a structure that rewards them for their sales and recruitment of new individuals.

The MLM business focuses on recruiting new participants into the business as that is the only way in which the business grows.

This form of business targets family, friends, neighbors and close relative, and they make use of a persuasive tactics, promising friends a flexible working hour, an opportunity to be financially stable and a gift to build their own business.

For one to join this kind of business, he is asked to make a one-time payment which they claim is used to purchase the coupon code to the business.

After a recruit has paid the required price, the emphasis of the business managers shifts from selling product to recruiting more users, encouraging one to get more downliners, saying that the more downliners the more the profit in the business.

This kind of scams can be referred to a pyramid scheme because its structure takes the shape of a pyramid

FAKE CRYPTO EXCHANGES:

Source

A fake cryptocurrency exchange as the name implies is an app that claims to offer services offered by a crypto exchange but has the intent of defrauding users.

A fake crypto exchange can further be explained to be a deceptive website that claims to offer the buying, selling and storage of cryptocurrency for users only for the aim of defrauding such users.

A fake crypto exchange always attempt to make use of the name, design, logo etc of reputable exchanges so as to gain the support and trust of the public.

Sometimes, they make use of domain names that are almost the same as names of reputable exchange, so as to scam the public.

These exchanges also attracts users with too good to be true promises, for example a very low transaction cost, a high transaction speed and a high return on every investment made.