Scam coins and how to make a profit from those selling it

I have seen quite a few coins that begin and end as a scam. They try and trick people into a MLM type scheme to resell coins with promises of huge returns in USD or Euros as the coin value always goes up.

There are many versions of this, including past coins MishCoin, PennySnaps, current versions like TheBillionCoin and OneCoin. While these are just a few versions of this, and a couple groups that are running them they are all of the same variety of ponzi scheme. Any coin that promises returns on a specific date, or the ability to gain value of a certain percentage over a predetermined timeline, or one that lacks the resources to be considered a cryptocurrency is a scam.

This is going to keep happening because it is easy for people to get away with it. So, the question to ask yourself is how can you make money from this, without owning these coins?

Step 1.

Research.

 Find out as much about the coin as possible. Most coins are listed on BitCoinTalk and will give all the information required about the coin on the announcement page. Some scams are quite visible from the start, others will take some investigation.

Step 2

Find Ponzi.

Find someone in same country selling this bogus item. This is pretty easy... sometimes they come to you, or on facebook or youtube channels. Do some research on the person, as they are mostly likely involved in a few of these schemes at once, or have previous convictions for fraud or embezzlement. The allure of free money is too much for some.

Step 3.

Profit.

Send off a complaint about the shitcoin and the person using it. Some countries (for instance the SEC in the US) have a whistle blower clause, where the person doing the good deed and shutting down a ponzi scheme will be rewarded with a percentage of the money seized.

I see people losing their money to scams, and it breaks my heart.

This is for those who wish to fight this theft from people just getting into cryptocurrency.

All links provided are demonstration purposes only. Please feel free to comment. 

Thank you for reading.

 -MadHatt