Cryptocurrency News Today – Traders Are Urged To Watch Out for Mega-Sized Chinese Cryptocurrency Ponzi Schemes – May 17th, 2020

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  • How to Protect Yourself from Cryptocurrency Ponzi 

Cryptocurrency News Today – Cryptocurrency scams and Ponzi schemes have been constant in the cryptocurrency industry. Things became worse right after the 2017/2018 cryptocurrency market bull run. As cryptocurrencies became more popular, people started inventing ways to reap others off through cryptocurrency. Yesterday, the cryptocurrency news in circulation was that a new mega-sized cryptocurrency Ponzi scheme. According to the reports, a Chinese-based cryptocurrency Ponzi scheme that reaped people off in 2018 and 2019 might have resurfaced again.

Cryptocurrency News Today – Major Cryptocurrency Ponzi Scheme Targets Wallet Owners

Between 2018 and 2019, this Chinese-based Ponzi got over 715,000 people to register. They generated over 46,000 Bitcoin BTC and 2 million Ethereum ETH. Dovey Wan, one of the founders of Primitive Crypto, said that many Ponzi schemes like PlusToken scammed people of their hard-earned tokens. The effect of these schemes wasn’t just felt by those who lost. Offloading these platforms at the same time will affect the market negatively. Part of the post was as follows;

“WOW another mega-size crypto Ponzi WOTOKEN just second to PlusToken gets clamped down by Chinese police and by reading the court ruling material here are some eyes whopping data. TLDR: active July 2018 to October 2019, WoToken scammed total over **1 BILLION USD*. Total registered users: 715,249: Total hierarchical levels: 501. Total scammed crypto: 46,000 Bitcoin – 2.039 million ETH – 292,000 Litecoin – 56,000 Bcash – 684,000 EOS. According to the price on the day police involved, the total value is more than 7.769 billion yuan ($1B).”

Last year alone, more than 200, 000 Bitcoin BTC tokens were stolen from holders by PlusToken. After stealing the tokens, they tried to sell them in the open market instead of selling them through OTC platforms. The total amount of everything they stole was about $1 billion. The sale of all these tokens is said to have contributed significantly to the negative price trend in the cryptocurrency market last year.

How to Protect Yourself from Cryptocurrency Scams

The first and most important rule when it comes to cryptocurrency scams is that if it is too good to be true, it’s a lie. This is more or less the most important rule when you’re trying to avoid getting scammed in every other part of life, not just when cryptocurrencies are involved. You need to keep greed at bay if you want to protect your wallet. Don’t join any Ponzi or multilevel marketing scheme that requires the use of cryptocurrencies. Mind the sites you visit and avoid clicking on unknown links. If you’re using a soft cryptocurrency wallet, mind who you give your details and mind the websites you use your wallet details on. If you have the money, you should invest in a paper wallet.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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