Bitcoin and Pyramid Marketing

[madushanperis11]

There is no argument on BTC that it is gaining value day by day. I thought of sharing an experience on, how some people are using the name of BTC
and started other business to earn money.

Somebody chat with me (via FB) and wants to talk about BTC. We all know if we want BTC, we directly buy and store in our wallet.
But his way was different, I have to buy from him only. and after that, I have to join another 2 and they have to the same and go on.
Eventually I will build a tree under me and I also will become a member of someone else's tree. As per their conditions, I will receive
some commission when a balanced tree is formed under me.  The rate was also too high than market price, almost 3 times the market price.
Luckily I knew how BTC works and about pyramid marketing, but if someone who does not have any idea could be a victim of these type of people.

In some counties, the pyramid form of business is illegal. Be aware. Just shared an experience. Might help someone.

Chears!

[Rggadi]

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.

[Catmony]

Pyaramid scheme is illegal in my country, but it is legal in my neighbouring country so people from here are investing in bitcoin related mlm ponzi there.

MLM and PYRAMID ponzi exist from decades but recently many mlm ponzis are selling tokens in the name of next bitcoin. Leocoin and onecoin are fee examples.

[Shamie1002]

I heard so much about pyramiding scams. But unfortunately there are bunch of these in my country. Different food supplements, whitening soaps and medications that are said to be antioxidants.
They are involving products as a package for a membership fee and once that you are a member and able to refer a friend to join you will get a commission.
I don't think if it's allowed or something but it spreads fast. Maybe because Filipinos today can do anything just to earn money even if its to good to be true.
But bitcoin being involve in a pyramiding scam, I think that is bad.
I am guessing the use of coins.Ph. They are giving rewards if you refer a friend. I think that is one.
But the buying of bitcoin and referring a friend. I haven't heard of it before. May be he is just tricking for big bucks.

[hasmukh_rawal]

Pyramid scheme or MLM whatever it is, they don't sustain long enough and have to break their pyramid at some point when the network in unstable. It attracts many users as the profit gain shown from the network is high. What people don't understand is, it benefits only the early investors and the the late investors have to become their prey. These were also in trend in the name of matrix programs which were eventually closed because of unsustainability. So staying away from such deals is the best thing to do.

[jseverson]

Lolwhat. Schemes like this have nothing to do with Bitcoin. It's literally just a pyramid scheme that uses Bitcoin instead of fiat. I hope the coins get traced and they get their asses jailed.

This has the potential to be dangerous though. It may appeal more to the general populace because Bitcoins are involved. People who have no idea how to invest in Bitcoin are at risk of getting lured in. I hope authorities crack on them before Bitcoin becomes synonymous with pyramid schemes.

[rddsd7]

These kind of scams are not new. But have not known that they are in concurrency field too. I even found some ICOs are scams too.

[Iranus]

I suppose it's easier for BTC to be used for pyramid schemes - after all, a large number of transactions to a PayPal account will lead them to suspend the account, and similarly with other online transactions.

Still, that's just a side effect of BTC's existence.  There's not any decentralised way of solving the problem.

Net neutrality hopefully won't break down either, so people will need to take responsibility and be aware of these schemes themselves.

[patt0]

At least that was a really bad pyramid scheme, and quite easy to spot from the majority of people. They were not even trying to hide it, since they wanted you to create a tree of new investors. It's much more serious when you have those ponzi schemes created as hyip's. Since a lot of people hear about the big gains in crypto trading, some think that the gains that those scammers as offering are actually legit, and end up signing up for those services. For me bitconnect is one great example of a disguised ponzi, and many people are still falling for that.

[BitNaija]

I have seem that so many persons want to enjoy the benefits of the crypto revolution but through the back door. The best way is to invest in buying cryptocurrency hold and trade when the value goes up. Some people want quick investment and that is where the ponzi schemers are catching in. All ponzi benefit the top leaving the bottom members dry.

[madushanperis11]

Bitcoin related or not, this Idea of Pyramid is not stable. Who are in the top is safe while newbies are always in danger as any time if the scheme collapses they lose their money.

One famous scheme few years ago was, selling mini solar lighting kit at 600$ where real price was 100$. And this was the time when solar systems started to become popular an people have not clear idea of their real prices. When you build a balanced tree under you with 14 members you get your first payment which was 80$ and that is the only payment you get on time and after that they have already hunted 14 new. So they do not want your ass to be saved.

This was exploited by media and people got aware, now they have gone to BTC instead of that solar system with different approach. 

[tech72]

That's a new kind of scam, but I am pretty sure people are aware of the Bitcoin price now after it hit 10k.

The funniest scam one was where people sold actual physical bitcoin to newbies.

[xenxen]

i think bitcoin pyramiding is still happen and this is not running lonnger because some of this became a scam..