Crypto & Forex Ponzi Scheme on the rise amid COVID-19

Crypto & Forex Ponzi Scheme on the rise amid COVID-19

In conversation with Digpu, Adv P M Mishra talks about various scams that have hit the market since the past few years. He sheds light on how these scammers work and why an investment should be based on critical research.

Internet usage has seen a surge in Covid19 era, and few scammers would love to take advantage of this situation. Thousands of Forex trading related Ponzi schemes, Cryptocurrency related Ponzi schemes have already been unveiled globally, more specifically in India.

Social Media Deception And Fancy Jargons

Some scammers go for straight-up deception. The founders of scam cryptocurrency One Coin defrauded investors of $3.8 billion by convincing people their non-existent cryptocurrency was real, as per an article on Business Standard.

Crypto & Forex Ponzi Scheme on the rise amid COVID-19 - CryptoCurrency News Digpu
Crypto & Forex Ponzi Scheme on the rise amid COVID-19 - CryptoCurrency News Digpu

Fraudulent initial coin offerings

Another popular scam technique is called an ‘initial coin offering’. A potentially legitimate investment opportunity, an initial coin offering essentially is a way for a startup cryptocurrency company to raise money from its future users. In exchange for sending active cryptocurrencies like bitcoin and Ethereum, customers are promised a discount on the new crypto coins.

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