Scams in the Crypto Ecosystem (Part 1)- Ponzi and Pyramid Schemes| by @ikramullah430 |
Hello everyone my name is ikramullah and this is my submission post for the lecture LINK on scams in crypto ecosystem and two major schemes used by frauds which are ponzi and pyramid, explained by in @steemkids community by @fredquantum.
INTRODUCTION
There is a lot of fraud in the cryptocurrency ecosystem, and Ponzi and pyramid schemes are two of the most common scams. These schemes promise high returns to participants, but eventually they collapse and the operators give back all the money to investors. These schemes are often doomed from the start because it is hard to generate enough returns to cover costs. So, if you're considering investing in cryptocurrency, be sure to do your research first!
PONZI AND PYRAMID SCHEMES
Ponzi schemes are a type of investment fraud in which participants are promised abnormally high returns on their investments, primarily through the use of money from new investors. In a pyramid scheme, participants participants are are promised recruited abnormally by high others returns who on also their recruit investments new by participants, recruiting with new each participants new into participant the paying scheme. off These the schemes earlier often ones. collapse These because schemes the often operators collapse can when never it generate becomes enough apparent new that investment the money returns to promised cover cannot the be costs delivered. of What earlier are investors your which is than given back to them.
SIMILARITIES / DIFFRENCES
There are many similarities and differences between Ponzi and pyramid schemes. They both promise high returns to participants, but ultimately they collapse and the operators give back all the money to investors. While there are some similarities , Ponzi schemes are more common and have been around for longer. So, if you're considering investing in cryptocurrency, be sure to do your research first! If you decide to invest, be very careful and don't let yourself get scammed. Ultimately, it is up to the individual to decide whether or not they want to adopt or stay away from these schemes. It is important to do your own research to make an informed decision.
ADOPT OR STAY AWAY
i would rather stay away from these things than adaption. because these schemes are major set back in crypto ecosystem. if you start becoming greedy/ foolish you would enjoy these benefits of the scammers but once you become victim you try to feel sorry for yourself latter. so its batter to stay away from these types of scammers and schemes as well. In crypto ecosystem once you dive in you come to know with the correct information that it is beneficial to you if you stay focus calm and don't become greedy. so to conclude i would say stay away from these types of scams and don't do any commitment if you don't know much about the system.
its good to read your writing dear friend @ikramullah430
Hi @ikramullah430 thank you for taking part in this contest I appreciate you so much, continue making quality post with us here.
thank you so much i will definitely try to do my best i am quite new so i might need some guidelines . which i think i can get in this community without any criticism.@eliany
Hi dear, your introduction post has paid out, you need to log into your wallet and claim your reward. Then power up to be in club5050.