Archive for the Category "Pyramid Games, Ponzi Scheme, Hyips"

Differences Between Pyramid and Legitimate Cryptocurrencies

Illustration picture of a pyramid scheme. In the cryptocurrency world, pyramid schemes/Ponzi schemes are nothing new. Cryptocurrencies like Bit­coin, Litecoin, Ethe­reum and others are becoming more and more popular, so it comes as no surprise that dubious online projects and businesses begin to emerge, which misuse this current phenomenon. In this article you learn in particular about the difference between legitimate electronic currencies, like Bitcoin, Litecoin and others, and pyramid (scam) crypto coins, like Coinspace or Onecoin, and what these pyramid systems have in common. Read more >>

Pyramid and Ponzi Scheme – What Is the Difference Between Them?

How do pyramid scams work in reality? Pyramid games (pyramid schemes) have many forms and sometimes it is difficult to recognize them. However, they all have one shared feature. They promise customers and investors huge profits based mostly on recruiting another members to the scheme, not based on real investments or real sale of products and services. Some schemes may support the sale of a product, but it is often just using the product to cover the pyramid scheme. There are two indications that the product is being used to cover a pyramid scheme: inventory purchase and low retail sales. Read more >>