How to tell if a cryptocurrency project is a Ponzi scheme

2022.08.26 18:42

How to tell if a cryptocurrency project is a Ponzi scheme

The crypto world has experienced an increase in Ponzi schemes since 2016 when the market gained mainstream prominence. Many shady investment programs are designed to take advantage of the hype behind cryptocurrency booms to beguile impressionable investors.

Ponzi schemes have become rampant in the sector primarily due to the decentralized nature of blockchain technology which enables scammers to sidestep centralized monetary authorities who would otherwise flag or freeze suspicious transactions.

Promises of ridiculously high returns

Unregistered investment projects

Use of sophisticated investment strategies

High level of centralization

Multi-level marketing

Source