You probably have been reading about it in a lot of news websites, or seen the ads (like me). Iconomi, a platform that plan to de dedicated to investing with cryptocurrencies was doing an ICO to get fundings. ICO stands for “Initial Coin Offering” is basically like issuing a stock, except that it’s not listed on the Dow Jones for example. What is impressive is the hype around their idea of being the “Uber” of investing/finance.
Bitcoin is evolving at a fast pace, more and more services are growing and some of them are aimed at growing your crypto wealth. Lately I’ve found about those kind of « Bitcoin banks » that are paying you interests just to hold a positive balance with them. Instantly, the experienced investor see some advantages such as a totally passive income opportunity while being still « legit » (yes, no shady Pyramid Scheme promising you 3000 %/year), and some risks such as the possibility of the service to go down and disappear or to try to steal your precious digital money. That’s why I’ve been extensively searching about it and can list two of those services here.
Oh well, you’ll say “yet another Ponzi” but I wanted to especially report this one since they are advertising everywhere, after warning users about Bitclub. Let’s enter again the fabulous world of those High Yield Investment Programs and their “unlimited profits”.
If you’re following news about cryptocurrencies, you might have seen that Bitcoin is the object of an intense debate, lately reinforced by the fact that the network is becoming clogged and leave a big backlog of transactions. This is, to say the least, a bit annoying for users. « Core », the actual main version of Bitcoin is competing against « Classic », the team that wants a hardfork as fast as possible to increase the size of each blocks that contains everyone’s transactions. Let’s try to take a global stance on what is the situation while keeping it simple.
As you may know, there is big problem in the cryptocurrency space. Bitcoin, by its nature, makes moving value very easy and is a guarantee against charge backs and well, because it’s very useful for everyone scammers also love it.
There are plenty of Ponzi schemes (or pyramid schemes) around, even some that aren’t trying to hide themselves, marketing it as a form a gambling. Nevertheless, the most profitable business for this kind of scam is to hide it, showing impossible returns on investment to people that can fall into it.
I’m not going to explain what a Ponzi is so I’ll just let that Wikipedia link here.
So I decided to write today to warn people about a very popular scheme that is called BitClub.