India is a big country and with that it brings several issues of its own when a new technology and currency system tries to break through to its economy.
Sometimes, people tend to be gullible, naive and also inherently greedy. In the rush to make overnight profits they get lured into get-rick-quick trap where they are eventually scammed out of their money.
These are one of the reasons for RBI taking extreme measures to curb use of cryptocurrencies in India. This is due to the fact that as the days roll on many new scams are being unearthed by law enforcement agencies in India.
Given these issues it's very difficult for policy makers to side with cryptocurrency enthusiasts asking for regulations. In-part lack of regulations are also to be be blamed for the on-going situation.
In the past few weeks we've heard of many new scams. The latest ones are MTC (Money Trade Coin) Scam and then there is the GatBitcoin Ponzi scheme. Infact someone even tried getting my money for the GatBitcoin scam in the past. But fortunately for me I've been around in this space a while to be able to differentiate between legitimate projects and scams.
But many have fallen victims to these scams. It's unfortunate but it's largely due to lack of ignorance as well as the desire to get rich overnight.
I'm not going to post specific details about the scams in this post as a quick search on Google will get you all the information you need about the latest scams or you can read here, here and here as well as the link in the image source above.
In the past I've tried my best to educate users of Steemit during my meetups and presentations and get them to make an effort to learn about each project they are investing their money into. Because inevitably everyone wants to know about the latest ICO or new coins where they can make 5-10x within a few weeks of its release. Unfortunately, that's not how markets work.
Cryptocurrency markets can potentially make you money overnight but if someone promises you that they will get you a specific percentage each month for whatever duration for your investment then run away as fast as you can!
The correct way to enter and exit cryptocurrencies are via exchanges or peer 2 peer. However, don't simply invest into any random shitcoin that is coming up with huge promises. You will burn a lot more than you fingers this way. People are ignorant about these facts and yet they want immediate returns. This has allowed many people to come with ingenious ways of trapping investors and robbing them of their money.
There are no dearth of ponzi scheme peddlers in India. Infact, cryptocurrency has given rise to several new ways of siphoning off money and laundering it into other countries.
Infact many investors who have lost millions of rupees are those who invested a lot of their unaccounted money into these projects. Back in the day it was E-biz, Qnet and other similar MLM Ponzi schemes that we've all come across in India at some point or the other. Now it's Bitcoin based.
India has become a land of ponzi schemes and you need to do you due diligence before giving your money away to anyone!
The lure of money is so much that even celebrities start endorsing things they are clueless about. Take example of Raj Bindra and the likes who promoted scams and are now in trouble because of it.
There's a lot of easy money to be made in crypto but it will bring with it, it's own share of troubles.
Beware and be aware cryptocurrency enthusiasts!
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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Only the lack of education can be blamed for this.
thanks your information is useful
That is really bad and thank God that you didn't fall in those scammar. I don't know why some people are so heartless? Okey thanks for updating us Mr @firepower
This is good work man. We cannot have too many warnings from these scams. Better to be informed than sorry and not to mention that scams like these give cryptocurrencies a bad name.
India+Money=Stealing
Why is India+Money equals to Stealing? I'm not sure I understand you here.
People need to be more smart and aware of all the ponzi scheme...there is no shortcut in lofe..and no one ever knighted overnight....
There's been so many coin scams over the last couple years. I've been into BTC since it was about $70 a coin and have seen 100's of websites, mining companies, and various ideas come and go. It's sad people put so much energy into ripping others off instead of doing positive work.
Ponzi schemes have been more apparent in the crypto world. We all need to be careful in what we invest in.
No different opinions can arise out of what you have said here. These are 100% facts. First of all people shoud try to understand what they are about to enroll in before making any investment decisions. Be it cryptos, sharemarket or whatever it may be. Paying due diligence is the key to play safely as you have rightly pointed out here!
Resteeming. Let it reach to more people.
It seems like India always has some sort of scams going on. I don't mean that in a bad way toward the Indian people. Maybe it has to do with the government or something else.
I got to know two things through your article. Either you should have lots of knowledge in dealing with cryptocurrency as well as technology behind it or you should have lots of extra money.And I have a shortage of these two. Thank you for sharing this post.
Some people are so greedy that instead of supporting the new ideas they start making plans to find loop holes to fulfil there greedy desires. It's not only the case in india, nowadays it is common throughout the world. Thanks for making us aware.
Great post,yes our country is like a mother land of corruptions ,various types of panzi scams which are contineously cheating people with their various misguiding attitudes.People also victimised due to greed or ignorance.To deal with crypto one should have vast knowledge .Thanks dear for your informative post,