Dekado versus Harmony DKD vs ONE
The SEC accused the operators of Forsage of raising $300mn from at least January 2020 through an unregistered securities offering. The civil charges came just weeks after the regulator charged a former employee of crypto exchange Coinbase with insider trading related to coin listings. The former Coinbase staffer said through his attorney that he was „innocent of all wrongdoing“. PlusToken stands as one of the largest and most recent Ponzi schemes in the crypto world. The scam primarily targeted Chinese investors, leveraging the popular messaging app WeChat for marketing purposes.
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- As usual, the introductory sessions promised 40-70% monthly returns on Dekado Coin.
- In this fraudulent scheme, the perpetrators create fictitious crypto enterprises and manipulate investors with compelling narratives and false statistics.
- In the current era of mass media, most scam crypto projects employ celebrity endorsement, real or perceived, as a tool of credibility and unsuspecting investor attraction.
- We will shed light on how the individuals behind these schemes leveraged the volatility, intricacies, and unique appeal of cryptocurrencies.
Ether Trade Asia operated as a crypto trading platform, offering investors a daily return of 3% on their investments. However, when users attempted to withdraw their tokens, the platform constantly cited “technical glitches” as the reason for the inability to process withdrawals. The lack of transparency, including the absence of a physical address or contact information, raised further suspicions regarding the legitimacy of Ether Trade Asia. The scam allegedly led to the syphoning of lakhs of rupees after luring people to get whopping returns on their investments. Morris Coin targeted Indian investors, with Nishad K and his team promising daily returns and referral benefits.
- Scammers take advantage of the lack of crypto education among many individuals around the world.
- While the crypto was listed on a few exchanges, its value plummeted from over $70 in October 2017 to a mere $0.005 in 2019.
- It capitalized on the widespread crypto hype, presenting investors with the opportunity to participate in a multi-crypto mining ecosystem that promised high returns.
Dekado Coin became one of the prominent crypto Ponzi schemes that caused substantial financial losses. A crypto Ponzi scheme is an elaborate investment scam that entices investors with the promise of high and quick returns, leveraging the allure of cryptocurrencies. In this fraudulent scheme, the perpetrators create fictitious crypto enterprises and manipulate investors with compelling narratives and false statistics. Their primary objective is to collect money from new investors and distribute it as supposed profits to earlier backers, giving the illusion of a successful investment endeavor.
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PlusToken enticed investors with promises of monthly returns ranging from 10% to 30%. Ultimately, the fraudsters convinced investors to purchase the project’s token, PlusToken, resulting in colossal financial losses. Launched in 2016, Bitconnect gained significant attention as a Bitcoin lending solution, assuring investors monthly returns of up to 40%.
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The scam conducted most of its marketing campaign via the Chinese messaging app, WeChat, by enticing investors with the prospect of generating 10-30% monthly returns on investment. PlusToken attracted over 3 million investors, a majority of which were located in China, South Korea and Japan. The entire business model of the project centered around crypto literacy and a wallet service.
In 2017 it became clear that there was neither physical mining equipment nor any mining operations backing the elaborate scheme. Like other scammers, Ether Trade Asia posed as a crypto trading platform, offering 3% daily returns on investments. But every time a trader wanted to withdraw their tokens, the platform did not allow it citing ‘technical glitches’. The website did not even publish any company’s physical address or an email ID for contact.
Analytics Insight is an award-winning tech news publication that delivers in-depth insights into the major technology trends that impact the markets. The content produced on this website is for educational purposes only and does not constitute investment advice or recommendation. Always conduct your own research or check with certified experts before investing, and be prepared for potential losses. Opinions expressed herein are those of the authors and not necessarily those of Analytics Insight, or any of its affiliates, officers or directors.
Investors in the crypto market are well aware of the potential for high returns that stem from the innovative nature of blockchain technology, particularly in sectors poised for mainstream adoption in the near future. Darji, the resident of the Adajan area in Surat, has been accused of duping investors of USD 12.7 Bn through Bitconnect.in, the Indian division of the UK-based Bitconnect (.com), which was launched right after demonetisation. Darji is also an accused in a Rs 22,000 bitcoin scam and later his name surfaced in another Rs 1,000 crore scam of Dekado coin.
Both types of schemes exploit unsuspecting individuals, but understanding their differences can help investors recognize the warning signs and protect themselves from falling victim to such fraudulent activities. Our aim is to assist members of our community in evading becoming the next target, providing valuable insights and clear guidance. Over the past 5 years, it has been reported that more than 20 billion USD (!) have been stolen in various cryptocurrency Ponzi schemes. This alarming statistic highlights the unfortFunate reality of numerous cases where investors have experienced detrimental consequences due to the actions of malicious individuals operating within the blockchain industry. We hope that as you read this, it is because you prioritize educating yourself for prevention rather than recovery. However, if the latter is the case, please make sure to report crypto scam cases known to you to the authorities in your region and file a complaint at lionsgate.network as soon as possible.
Like GainBitcoin, Mining Max also used an ostensible cloud mining venture to mask the true nature of its illegal operations. The platform promised investors an avenue to capitalize on widespread crypto hype. Mining Max pitched the idea of participating in a multi-crypto mining ecosystem, which had the potential of generating high returns. However, just like every other crypto Ponzi scheme, much of the business model relied on heavy marketing dekado coin campaigns geared at attracting new investments. PlusToken is one of the latest and largest Ponzi schemes ever recorded in the crypto world.