Warning! Beware of Crypto Scams Targeting Beginners



Crypto MLM Scams

Trying to join the crypto movement? Beginners should be cautious not to invest in multi-level marketing schemes (MLMs). The recent gains in the crypto market have attracted more people to buy digital currencies. As a result, fraudulent characters will become emerge with intentions of duping unsuspecting individuals.

MLMs are the most common scams and the general public should fight the temptation of investing in such schemes. The most obvious feature of MLMs is their promise of constant daily profits after investing. They claim to make daily based on how much their clients have invested. However, the websites of such schemes always have problems whenever a customer tries to withdraw their funds.

Examples of Multi-level Marketing Schemes in Today’s Market


Bankroll claims to be a decentralized and borderless social trust that runs on Tron’s blockchain. It promises a daily payout of 3.33 percent on an investment. The company also gives a 1.25 percent commission for clients that invite other people to join the network. Bankroll’s site states that the firm builds blocks for other decentralized applications (dApps) through the Sponsor API. Although the offer is sweet, Bankroll will eventually stop all operations before investors are able to withdraw the funds. At first, the firm will let users withdraw their funds. However, the users would encounter problems when they try to withdraw funds after a few weeks. The company would then send notifications informing the platform’s users that there are some technical problems and that it is working to solve them. The company’s founders would then disappear with investor funds. promises its investors that an ‘AI trading bot’ would manage their money while giving them daily profits. Many people believe that they can outsmart this system and make money before the company shuts down. However, this is a silly belief that would see a lot of people lose their hard-earned money.

MLM Schemes that Regulators Exposed in the Past


This is the largest MLM scam in the history of Bitcoin. The firm’s founder sold the organization’s unmined tokens to investors promising them great returns when the token got listed. OneCoin also offered rewards for investors that invited other people to join the platform. The company never registered the coins and later on, regulators noticed that it was a pyramid scheme. This led to its crash, causing investors to lose a lot of money.


BitConnect promised its investors massive profits on investment. The company claimed to pay up to 120 percent on an investment annually. It also gave commissions for users that invited other people to join the network. Financial regulators suspected the organization of being a Ponzi scheme. The company crashed last year and the FBI is still investigating the case.

Other similar scams include Centurion, Dascoin, and Bitpetite

The Bottom Line

When trying to onboard the crypto bandwagon, beginners should exercise a lot of caution to avoid investing in fraudulent organizations.

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