Beware of Crypto-MLMs and High Return Investments on Social Media

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via Beware of Crypto-MLMs and High Return Investments on Social Media – Bitcoin News

Unfortunately, the world of cryptocurrency has seen a bunch of people running scammy ‘investments’ preying on people’s lack of knowledge. Over the past couple of years, shady organizations such as Onecoin, MMM Global and others have brought a slew of shady characters operating get-rich-quick schemes and Multi-Level Marketing scams. It’s good to know how to spot these types of sketchy operations and refrain from participating.

Also Read: How Sustainable Will Bitcoin Be After the Apocalypse?

Beware of So-Called Online Investments

Beware of Crypto-MLMs and High Return Investments on Social MediaBitcoin.com has done extensive reporting on the likes of the so-called digital currency Onecoin. We’ve also covered a few other MLM operations that use virtual currencies and have uncovered many red flags associated with these businesses and their employees. Besides Onecoin, there is a vast amount of other scams that people should be aware of so they can better protect themselves and their legitimate investments.

Social media has a broad array of groups that pay particular attention to the cryptocurrency landscape. However, when following these groups on Facebook, Google Plus and many others, there is a ton of scammers preying on visitors. They offer unheard-of returns on investments for those wanting to join their ‘club’ as well as promises that will never materialize. Here are some promises from people offering ‘investment opportunities’ within crypto-groups on social media:

31 days online, 30 days paying. 0.3% hourly forever, 7.5% daily forever, 60% weekly forever. 0.001 BTC minimum, and automatic withdrawals.

OMG! Just signed up.. $4 bonus… with potential income of $100 a week or less.. Completing simple tasks, no investment, totally free… just sign up.

New Doubler Investment Site!!! 0 running days, 200% hourly for 50 hours, 240% after one day, 355% after two days, 470% after three days, 585% after four days, 600% after five days, Min deposit:$1, we accept bitcoin.

Beware of Crypto-MLMs and High Return Investments on Social Media
There is a lot of shady investment opportunities on Facebook, Google Plus, Linkedin, Twitter and more.

‘Scam Artists: the Evil Cousins of Genuine Entrepreneurs’

Many of these types of investment scams ask for people to send a minimum of bitcoin so they can expect a bigger payout in the future. Furthermore, a lot of these shady organizations run under a Multi-Level-Marketing (MLM) business model. MLMs consist of people who are selling in a pyramid or referral type of marketing system. The business model requires recruiting more people to fund the entire network and has always been a controversial business plan. Companies can often be seen operating in this manner using bitcoin within their operations and accrue revenue from direct sales and downline distribution. And yes, there are legal MLM structures in many markets that run legitimate business operations and should not be considered Ponzi schemes.

However, a large portion of MLMs associated with Bitcoin (if not all) are shady operations, so buyers and potential registrants should beware. Scams in relation to Bitcoin mean the community must continuously be on top of its game to expose such operations. Austrian economist Jeffrey Tucker believes scams are a form of flattery and a bullish sign for the digital currency. Tucker explains this rationale in 2015 stating:

Let’s ask a deeper question: why are scam artists so attracted to Bitcoin? The answer is actually flattering. Scam artists are the evil cousins of genuine entrepreneurs. They are alert to new opportunities. They are attracted to ventures that are popular among the smart set. They are profoundly aware of what people imagine to be the next big thing. Their interest in Bitcoin, then, is actually a bullish sign. I would be more worried about this market if scam artists were not interested in it.  

If it’s Too Good to Be True, It Probably Is

A lot of online resources and consumer reports may help distinguish whether or not an ‘investment operation’ is a scam. It’s safe to assume that most of the MLMs and significantly ‘high investment’ return opportunities associated with Bitcoin are not legitimate operations. Most of these scam artists and fake investments are pretty easy to spot, and people should be very cautious when approached by individuals soliciting money on the internet. If the investment sounds too good to be true with wild promises of daily payouts, or you need to recruit hundreds of people to earn income, then it’s probably not in your best interest.

What do you think about MLMs, doubler investments, and scam artists using Bitcoin in the backdrop? Let us know in the comments below.


Images via Shutterstock, Pixabay and various Facebook groups.


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Sydney Stock Exchange Confirms Public Blockchain Platform for Instant Settlements – CCN: Financial Bitcoin & Cryptocurrency News

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The Sydney Stock Exchange is pressing ahead with a new blockchain settlement system that will position itself as a low-cost alternative to the current clearing and settlement system delivered by the Australian Securities Exchange (ASX).

via Sydney Stock Exchange Confirms Public Blockchain Platform for Instant Settlements – CCN: Financial Bitcoin & Cryptocurrency News

Update: Demonsaw 3.0.5 Goes Live

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A new release for community has hit the demonsaw.com downloads section.

Here are the latest updates since 3.0 went was launched at DEFCON 24:

[3.0.2]
* queue unauthorized packets then emoty queue once re-authenticated with xfr router
* transfer routers should not be overwritten when refreshing with msg router (keep in memory and replace only). msg router sends back all xfr routers to clients (not just success ones)
* transfer service unauthorized will drop transfer request (to restart). Re-queue and/or don’t restart, just re-group & handshake? Add to post-auth queue and then process upon successful re-connect?
* restart of client should NOT restart transfer routers (allow transfers to continue)
* turn yellow if you have 0 xfr routers
* use transfer router as long as not error status
* max/min transfer routers that are used in transfer? (1 – 8)
* transfer router open fail should abort? Or.. use TTL and fail when we run out of retries?
* right click download, Stop doesn’t appear cross rows (if yes/no)
* fix browse sort crash bug
* wrap all service/acceptor handlers in exception handling
* TwoFish crashes on linux??? (Just use AES for session?)
* 5 sec progress update change from green to blue
* removed early socket close function calls (should fix router crashes)
* return 501 if router uses non AES for session
* router socket->close() – let destructor do it
* porn’s weird file parse issue – i think an exception is thrown tbh
* Only allow folder browsing if folder size > 0
* alpha 1 sets button at 255 alpha?
* auto rejoin client to router if going from 0 -> 1 or 1 -> 0 shares
* minus button remove all (download, upload, etc.)

[3.0.3]
* Stack crash was occurring on Linux due to 4K worker thread stacks
* Increased stack size to 256K
* Added twofish algorithm back
* tooltip for dock widget
* Added tooltips back
* Updated retry to 1 sec (100 ms was DDOSing the router?)
* retry is set to 0-1 sec now…
* Add retries to services & acceptors
* Remove unnecessary error messages
* Unable to write needs to eventually time out?
* retry should be 8
* bring over random retry code from message acceptor to clients (0 – 1000)
* tunnel sockets to 1

[3.0.4]
* Restart ignores previous queued events
* unable to write still doesn’t timeout – it does, just takes 1 min
* playing while downloading corrupted file, resume fixed?
* 1 tunneled socket

[3.0.5]
* 1 thread for message routers
* Display “Upgrade Now” message in chat when incompatible router found