From 5% Monthly Returns to Zero - A Lesson on Avoiding Crypto MLM Traps

Welcome back,

No matter where you come from, there is something common in all of us, and that is the passion to earn money. And this passion to earn money often takes us on a path which is not safe for us and where we end up getting harmed either financially or in any other way.

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In today's blog, I am here to talk about one of the things that harm people all around the world. And the main reason of getting harmed is due to the passion of earning money. Believe me, it is really a good thing to have passion for earning money and getting financial stability and advancing in our lives even further. But we have to make sure that we are not taking the route that is going to be harmful for us. So I am here to help you out understand how to avoid those types of routes. I am going to share some personal experience and example with you so that it will become more clear about what I am talking about.

So, in my country, personally, I have heard about the news where superstars from Bollywood have promoted crypto projects that have ended up being a scam in the future and because of that, people have lost a lot of money. And when I say that superstars from Bollywood promote these projects, I am not talking about an ordinary superstar, but a well-known superstar. So, generally, the pattern which I have observed so far is that there is a project which offers you a monthly income based on your investment. And it is generally a multilevel marketing type of scheme where you are forced or you are motivated to bring in new members into the system so that your earnings will boost up. And that is how it works.

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So let me share with you one of my personal experience and example which happened with my cousin brother who invested in a project named Trillionaire. when I came to know about it, I straight away told him that it is going to be a big scam. Because when he gave me the link to that project, I went and checked it, and in just less than a minute I could tell that it was a scam project. Because 99.99 percent of the total token supply was residing in just one wallet. So what in the world do anyone think I need to investigate further to know if the project was a scam. So I straight away told my cousin that it is a scam.

But when someone is passionate about money and they want to earn money and most importantly, they want to earn money in the easy way out they have their counter arguments ready. And that is what happened with me as well. My cousin brother told me that the project is giving five percent income a month and they are promising so many things.

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And I was like, okay, but my question is, why is 99.9 percentage of the total supply residing in one wallet? Why? It clearly indicates the project is going to scam people by dumping it on the market someday. And that is what happened recently. When I met my brother, he told me that the project has eventually stopped giving payments, the monthly payments that used to be five percent of the total investment. And also the project has been delisted from a few exchanges it was listed on. So I was right about the project being a scam.

And I kept on telling him that even if five percent is being given per month, imagine that it will take around two years to recover your investment. And if the project decides to leave you in the midway and run before the two years of time has passed, you are not even going to get your investment back.

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And in actual, the real profit will start coming after two years, because for the first two years approximately one will be going to be recovering his initial investment. Is not Hive a better option here, where you have your Hive power and you can unstake it whenever you want, or even Leo token, where you can buy Leo tokens, stake them and earn rewards, or you can give delegation to @leo.voter where you will earn 16 percent per year.

I know it is not comparable with the 60 percent per year that the scam project was giving, but here, the earnings you are getting are pure profit because you are delegating your Leo power to the account and then you are getting something in return. You can unstake, you can undelegate your Leo power whenever you want, unlike those projects where you have to invest your money and forget about it.

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So always remember that while having a passion to make money is a good thing, the easy routes are often harmful, and you can end up losing your money. Never fall into projects that are multilevel marketing, the ones that promote MLM in the name of blockchain technology. They are simply here to loot you, and one day they are going to run away.

Maybe when things are not working for them anymore, or when new people stop joining their so-called project. So, that was one of my personal experiences with a project that recently scammed a lot of people. And you might not believe it, but the scam was worth crores of rupees. And the funniest thing is that the owner of the project is still promising that he will give the money back soon. But that “soon” is obviously never going to come.

Thank You and Happy trading everyone.

Posted Using INLEO