The biggest MLM Scams in the Bitcoin world and what is now left of them

the Some are sitting in jail, the had the other in a Villa in Dubai: scammers 2017 in the crypto scene for a great time. Many of the Rip-offs spread over Multi-Level Marketing (MLM) and the promise of quick profits. But what has become of the largest MLM Scam-Coins of the time? And where the former operator today? We collect the shards of some of the biggest this Rip off, and look at their methodology. Of the unpleasant side effects of the hype surrounding crypto-currencies.

By Max Kuhlmann
17. December 2018ShareFacebookTwitterLinkedInxingemail

O neCoin, the supposed mother of all Scams in 2017 . The Name OneCoin has become the epitome of Scams in the crypto area. As for those Rip off typical, linked it to Multi-Level Marketing with digital currencies. Actually, you bought at OneCoin training in the crypto area. Consequently, customers received mining rights for the not-yet-publicly-traded crypto-currency. Once OneCoin is listed on a crypto-exchange, they would shoot the gains in the height, so the promise. Extra money the customers have earned by referring new partners. The listing was however never.

"In reality, the cryptocurrency OneCoin the guise of a System, whose exclusive objective is the recording of new consumer"

it was, according to the new Tyrolean daily newspaper in an investigative report on OneCoin.

After about two years, the nightmare had come to an end: After numerous warnings by the financial authorities in the whole of Europe and various police investigations OneCoin was unmasked as a Ponzi scheme. In April 2017, the BaFin imposed a prohibition on Business in Germany.

In many cases, the initiators of businesses do not occur with fraudulent intentions, as a responsible CEO, but merely as the popular promoter or consultant. Not so, however, in the case of OneCoin: The whereabouts of the former CEOs of Dr. Ruja Ignatova is, after you had been arrested and on parole came, currently seems to be unclear. Some say they live under an assumed name in Ukraine. It seems, however, that police authorities in Europe to report her as missing.

Bitconnect – The Scam among the Top 20 crypto currencies

another prominent Coin, adopted a similar scheme, was Bitconnect. Unlike OneCoin Bitconnect was a popular Coin to Coinmarketcap.com and managed, in the meantime, even among the Top 20 Coins by market capitalization. Bitconnect operating a trading exchange and a own crypto-currency. It's horrendous profit gave promise; as soon as you gave the crypto-currency on the platform, got it up to 120 percent profit in the year. The minimum profit view was 40 per cent interest plus 0.25 per cent, profit to the Deposit of the day. In addition, it is common – who would have thought it – by means of recommendation marketing. Who brought new participants into the System, could still earn more.

The Bitconnect System from the beginning under the suspicion of being a Ponzi. The Intervention of various financial Supervisory authorities, then brought the confirmation. Bitconnect crashed at the beginning of 2018, and in September was also the last crypto-exchange, the trading of the digital currency.

As so often, it was then also for the former operator, dirty – whose wife was allegedly murdered and himself being investigated by the feds today, because of his business.

Centauri, the Community assumes

The Centauri (CTX) was a non-publicly tradable Coin, found in particular in German-speaking countries spread. He was originally the child of another potential snow-ball system. A Singapore-based company called Global Dynamic claimed, to realize large profits from Trading. Could participate, who invested a minimum of US $ 1,000. In may 2016, the Global Dynamic moved next to the company name and seat of the payout system Instead of direct money Transfer to the Bank account of the Members of the henceforth under the name "Alpha Centauri" operating company received a crypto-currency, the Centauri. This was then transferred by means of the Exchangers (with significant fees) in euros to their Bank account. Too bad, that the Exchanger was closed after a short time, and the members remained on their non-listed crypto currency to sit.

Nevertheless, a large network with over 1,000 acceptance was set for the Coin. As of 2017, the most prominent promoter, Michael Sander, announced to dedicate himself to other projects, this is the death blow for the digital currency and the investment of the members. The most famous face behind the Coin is likely to be pleased today, however, at the time, made juicy profits.

The Coin survives

What happened next is different of the Coin, however, of other potential Scams: It is a group made up of Victims, which was the February 2018 the Coin a new coat of paint. From the rather large Community of programmers, which – updated on the current state of the Litecoin brought the Blockchain – to the luck of the Coin had really found themselves. They designed a new Desktop and a Paper Wallet and laid the Private Keys in the hands of the owner. Since November, the Centauri Coin is on an exchange tradable. The active members founded a club called the D. I. F., by organising today and work on it, the once great network of acceptance points the revival of the. So far, they kept the promise of their Roadmap – this is even under the well-established digital currencies rather rare.

Works here – free according to Goethe – the force of Evil will always be "the Good"?

Possibly. Because if a Coin that may have been planned from the top down as a Scam, a real Community project, this is quite remarkable. Of course, it remains to be seen which direction the Centauri Coin developed.

Current potential candidates: Bitclub Network and bitcoin profit

A current, ongoing example of this is the Bitclub Network. Here are the profits allegedly made by Mining. Proven to there is also Mining at the Bitclub whether the mined Coins however, are not sufficient to pay the claims of the members, however, is questionable. Of course, prudence dictates here, the network not just as a snow ball system. But the spread of a distribution structure in combination with a certain lack of transparency will do the Rest, with caution.

Essential to the unique de is likely to r the case of bitcoin for profit. Through an Investment of at least 250 Euro to thousands of Euros earn. This will be to the walls, even openly false reports disseminated. So to have allegedly blabbed Günther Jauch and Wolfgang Lippert at the television. Allegedly they had been given the secret of your assets, there price: A System called bitcoin profit. Records of these shipments, one searches in vain because they have never taken place. But, of course, a huge fortune with this System through only a small Investment within a very short time the same old story earn....

How to recognize a MLM Scam? Old wine in new hoses...

at some point you get tired of always the same stories. The pattern repeated constantly: There is exorbitant profit promises by a one-time Investment. In truth, these gains are generated mainly from the up-and-coming members. The MLM scammers use this pattern for centuries. Ever since Charles Ponzi in the early 20th century.Century notes through the sale of so-called Answer, a kind stamp set, the deceived investors of their money, has changed only the Cover Story. Whether the profits are now generated by Trading like the Centauri, whether created by mortgage shops, such as in the case of the former snow ball Questra, or by Clicking ads, how at the end of 2016, made popular Ponzi projects Myadvertisingpays or traffic monsoon: Ultimately, it is always the same old wine in new bottles.

These scammers in the crypto industry and its Hype in the year 2017 came just at the right time. Since digital currencies are still relatively unknown, however, stories about the existence of Bitcoin millionaires handles, scented, many Criminals a new mesh. Mining, for example, is even titled today earn in many Places as a lucrative way to make money – although now only large enterprises make in order to actually profit.

conclusion: Do Your Own Research

Undoubtedly all the multi-level marketing and Affliliate are not models bad. It is, however, to examine how transparent the advertised product is and whether it is even without the growth by new investors viable. Red flags should it be so, if the profit promises sound too incredible to not be true, if the company is really working to be transparent, or if the product would be without the dissemination by means of referral marketing not interesting.

so, the next Time someone, and that he had promises from the own circle of friends, exorbitant profits through a one-time Investment, is skepticism. Because if it sounds like a Ponzi, it is often also one.