Topic: How can I spot Ponzi schemes? - page 3. (Read 2317 times)
It is easy to spot a ponzi scheme, when a site offered a great ROI in a short time or the site promise a big stable profit daily or monthly then it is probably a ponzi site, to detect a ponzi site juts think logically, if the site can give you such a huge profit, then why the site still need your money? sometimes some of the user knows it is a ponzi site but still joined the site because of the greed
Aside from using common sense, what else would you need?? 
And, it's not just ponzi schemes you gotta watch out for, there's also those hyiP's, MLM's, and anything at all that promises absurd returns.
Just use your head and don't get lured with these 'instant', 'high', 'assured' gains. Those are nothing but bull.
If it's anything even remotely suspicious or unfeasible, then stay away.
And, it's not just ponzi schemes you gotta watch out for, there's also those hyiP's, MLM's, and anything at all that promises absurd returns.
Just use your head and don't get lured with these 'instant', 'high', 'assured' gains. Those are nothing but bull.
If it's anything even remotely suspicious or unfeasible, then stay away.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
That is one of the most easy question. All you need to ask yourself, "Is it possible to have such profits in real what sites guarantee!!"
Here banks with over $100 billions are only able to promise 8-10% interest on FDs and RDs in a year. How can a site double one's bitcoin in 100 hours! Lol!
Cloud Minings and HYIPs sites are 99.999% scam. If you think, you could grow your bitcoin with them, better turn elsewhere.
Spotting Ponzi schemes, HYIP or any other investing scheme designed to scam you is pretty easy.
You just need to know where to look and how to read signs. Also bear in mind that there are some extra elaborate scam attempts.
Signs of standard Ponzi:
1. high guaranteed profits - it is impossible to generate stable high returns, basically anything higher than 20% is totally out of the question and should be avoided
2. Risk free investment - You need to remember that real investing is never 100% risk free, there is always a chance that you will lose the money
3. Zero information, or fake info about people behind the company - if you can't find address, phone number, real name of the CEO or staff, no social media profiles etc - it is a huge red flag.
4. Vague info about what this investment is really about - you need to know how this investment will generate money, you can't conjure money from thin air.
You just need to know where to look and how to read signs. Also bear in mind that there are some extra elaborate scam attempts.
Signs of standard Ponzi:
1. high guaranteed profits - it is impossible to generate stable high returns, basically anything higher than 20% is totally out of the question and should be avoided
2. Risk free investment - You need to remember that real investing is never 100% risk free, there is always a chance that you will lose the money
3. Zero information, or fake info about people behind the company - if you can't find address, phone number, real name of the CEO or staff, no social media profiles etc - it is a huge red flag.
4. Vague info about what this investment is really about - you need to know how this investment will generate money, you can't conjure money from thin air.
high guaranteed profit higher than 20% are possible depend on the amount of time they give, if they say stupid stuff like 100% in 24H, yes you have a point, but 20% in 1 year sound more reasonable to me
about information given i see that some hyip have evolved they tell you the info and maybe they are true, but still is a scam, so beaware
Always read their TOS! This is one of the easiest ways. What to look for?
Promises of lifetime contracts
Unreal rates (300% in a year)
Statements like "we guarantee profit"
Promises of buying back your contracts at high rates
Very high referral bonuses
Promises of lifetime contracts
Unreal rates (300% in a year)
Statements like "we guarantee profit"
Promises of buying back your contracts at high rates
Very high referral bonuses
The easiest way is to just look at what they offer. Most will offer things like, for example, 10-100% per day gains. If that were possible, you would turn $1 into over $100 trillion (multitudes higher than the total dollar amount in the WORLD) in under a year.
Pretty good number of things that you can see about a company that more or less help to confirm that they're a ponzi scheme and aren't really making any money.
1) Promises to pay a really high interest rate that are used to lure you into the scheme.
2) Very vague details about the company itself and the people inside of it. Most companies like to show what they're doing as a way to make people feel better and to show off their executives, Ponzi's typically don't.
3) Referral programs with a high reward for getting new people into the investment itself.
These are not all of the things that will confirm if something is a Ponzi but it sure as hell will probably weed out around 80 percent of them.
1) Promises to pay a really high interest rate that are used to lure you into the scheme.
2) Very vague details about the company itself and the people inside of it. Most companies like to show what they're doing as a way to make people feel better and to show off their executives, Ponzi's typically don't.
3) Referral programs with a high reward for getting new people into the investment itself.
These are not all of the things that will confirm if something is a Ponzi but it sure as hell will probably weed out around 80 percent of them.
I think the first thing is to know if the investment actually seeks to solve real world problem. In addition, it is necessary to know the team behind it.
If there are very reputable people, there are less chances that the business is not legit. But there is no hundred percent guarantee of this, it is necessary to know if they have the resources to make the business work.
If there are very reputable people, there are less chances that the business is not legit. But there is no hundred percent guarantee of this, it is necessary to know if they have the resources to make the business work.
Spotting Ponzi schemes, HYIP or any other investing scheme designed to scam you is pretty easy.
You just need to know where to look and how to read signs. Also bear in mind that there are some extra elaborate scam attempts.
Signs of standard Ponzi:
1. high guaranteed profits - it is impossible to generate stable high returns, basically anything higher than 20% is totally out of the question and should be avoided
2. Risk free investment - You need to remember that real investing is never 100% risk free, there is always a chance that you will lose the money
3. Zero information, or fake info about people behind the company - if you can't find address, phone number, real name of the CEO or staff, no social media profiles etc - it is a huge red flag.
4. Vague info about what this investment is really about - you need to know how this investment will generate money, you can't conjure money from thin air.
You just need to know where to look and how to read signs. Also bear in mind that there are some extra elaborate scam attempts.
Signs of standard Ponzi:
1. high guaranteed profits - it is impossible to generate stable high returns, basically anything higher than 20% is totally out of the question and should be avoided
2. Risk free investment - You need to remember that real investing is never 100% risk free, there is always a chance that you will lose the money
3. Zero information, or fake info about people behind the company - if you can't find address, phone number, real name of the CEO or staff, no social media profiles etc - it is a huge red flag.
4. Vague info about what this investment is really about - you need to know how this investment will generate money, you can't conjure money from thin air.
It is possible to identify that it is a ponzi scheme when there is no product or service capable of generating demand, although the proposal says that the business is something revolutionary. I think with time of experience this becomes easier to identify, especially when one sees the unrealistic gains that are offered by such schemes.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
you want create cloud mining site or only want join to cloud mining site
if you want create cloud mining site, and you have not ready mining hardware, i think you only want create ponzy site, not real mining
Are you reading it right? He is not even planning to build a cloud mining site or wanting to join it. He's just simply curious about it.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
Most of the signs for a cloud mining is being said by other members here. Maybe you should forget about getting curious with this things.
And just avoid when you see an exaggerated return of investment effortless.
I'm pretty new to Bitcoin
Well first, welcome to the world of crypto's
.. and the idea of cloud mining seems pretty appealing.
They are everywhere mostly here in forum you can found them in investor-based games. You can see a lot of them there but don't invest.
However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
It's pretty obvious, they are going to ask you to invest / deposit to them and you'll receive 100%+ profit in return without doing anything. Whatever it takes, don't try to invest into something that you'll just sit and wait for your profit without any source of income but from other depositors, you'll end up donating your bitcoins to them.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
you want create cloud mining site or only want join to cloud mining site
if you want create cloud mining site, and you have not ready mining hardware, i think you only want create ponzy site, not real mining
Don't be deceived on those too good to be true returns because those are just tools would really lure out greedy newbies to invest their money on because they always believe that they could possibly make them rich which isnt true at all.
Cloud mining = not profitable and the one which promises to give high daily return is just hyip not cloud mining.
Bitcoin doubler = all of them are scam no-one can double bitcoin within few hours.
Bitcoin donation ponzi = the one who will be in lowest level of the pyramid will struggle to get back what he have put into the program
Bitcoin hyip = They are hyip so they will not be online forever, some may run after few weeks some may run after few month. They will scam when they will stop getting new investment.
Better not to invest in any cloud mining site or any other program that offers high daily/weekly return. Learn trading so that you can make some bitcoin.
Bitcoin doubler = all of them are scam no-one can double bitcoin within few hours.
Bitcoin donation ponzi = the one who will be in lowest level of the pyramid will struggle to get back what he have put into the program
Bitcoin hyip = They are hyip so they will not be online forever, some may run after few weeks some may run after few month. They will scam when they will stop getting new investment.
Better not to invest in any cloud mining site or any other program that offers high daily/weekly return. Learn trading so that you can make some bitcoin.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
Go to this section - https://bitcointalk.org/index.php?board=207.0There are all kind of scams - ponzi, fake cloud mining, doublers, pyramid, matrix etc.
You will find all sings there
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
The most obvious indicator is to give high return in short time, they promise a fixed percentage daily forever without clearing the kind of job they do to grow your money, the legit business does not guarantee profits. You can see how many sites offer 10% or more daily and forever, but after 1 or 2 months maximum they close and run away with your money. No cloud mining will return you a bitcoin profit.
i.e. if you put in X Bitcoins, you'll get back less than X.
The question is how small or large your loss will be.
i.e. if you put in X Bitcoins, you'll get back less than X.
The question is how small or large your loss will be.
That's a bit extreme in my opinion.
You CAN make profit with btc cloud mining
But clearly in general you won't, and even if you make profit the risk you're taking is SO HIGH it's definitely not covered by the profit you'll get
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
as a rule of thumb whenever something looks too good to be true that means it is most probably a scam.
in case of a Ponzi scheme the scam always claims to have a backing business that is generating the profit (in this case mining bitcoin) but in reality there is nothing, there is no business (and in this case there are no mining equipment).
you ca read more about cloudmining scam here: https://bitcointalksearch.org/topic/cloudmining-101-ponzi-risk-assessment-878387
and simply, as long as you haven't seen the place having real hash power don't trust it.
p.s. also remember that when it comes to cloudmining it is not enough to be legit, they aren't exactly profitable investments.
I'm pretty new to Bitcoin and the idea of cloud mining seems pretty appealing. However I keep hearing about Ponzi schemes which rely entirely on new members to stay alive. Besides the blindingly obvious, what are the main signs that a service might be a Ponzi?
Ponzi is money game and always has pyramid scheme, takes money from people who are new sign up & invest, and enrich the old members, Ponzi usually have a tier of their direct referrals. Cloud Mining originally formed and operated in mining system. However, there are some owners who are tempted to embezzle investment funds that come in. They take full advantage of mines. So, Just pure revolving funds from member get member.
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