The Continuously Worrying Surge of Cryptocurrency Ponzi Schemes

In light of the recent Velox 10 Global crash case, there is a growing need for beginner cryptocurrency enthusiasts and investors to be more vigilant and assertive in their pursuit of fruitful cryptocurrency investment ventures.

The scheme in question (Velox 10 Global) was of Brazillian origin and it officially pitched camp in Kenya on January 28th, 2018 when it was registered after an extensive marketing and advertising campaign that widely attracted newbie and professional crypto investors. Its joining requirements included a Ksh. 10000 initial fee with a future expansion option at Ksh. 20000 which promised impressive returns of up to Ksh. 400,000 daily.

With such con cases on the rise, one can only imagine the trickle effect this is bound to leave on the credibility of bitcoin and other cryptocurrencies. Their image, which is already under deep contention, is more likely to progressively taint given their ambiguous nature. This is agreeable, the topic of cryptocurrencies is still very illusive, for the most part. However, be that as it may, the main fear and doubt that surrounds the whole subject matter on cryptos is widely propagated by meticulous and well-organized con schemes, such as Velox 10 Global, which paint the apparent facade of a progressive and futuristic crypto-driven initiative that aims to share the “unicorn” knowledge and benefits on cryptocurrency for the unenlightened mass. This firms often have a clear exit strategy where they either declare bankruptcy or simply just disappear with millions if not billions of investor’s money.

It is worth noting that cryptocurrencies, just like any other financial asset/investment, have a certain level of risk attached to them. Their risk, however, supersedes that of traditional investment options such as stock and bond markets given that they are a fairly new concept and the mechanics behind how they function is somewhat unclear and vague to the majority. The emergence of disruptive blockchain technology that promises vast autonomy and decentralization is still fairly alien to most in terms of what it actually is. What might not be alien as such is how efficient and futuristic its applications are as is witnessed in cryptocurrencies like Bitcoin. Owing to this fact, this usually leads to massive traffic of uneducated gambles on future trends of these digital currencies by desperate traders who are looking to make an easy yield of the crazy bandwagon. It is this confusion that often creates an avenue for malicious swindlers to prey on the unaware hopefuls in a fraudulent manner as is the case that happened in the Velox 10 Global scam.

Mrs. Muthoni, one of the unfortunate victims of the swindle, states in a report that she invested Ksh. 3.2 million of her life savings in the scheme with the hope of making a heavy killing with the returns. She was so confident in Velox 10 Global that she introduced the scheme to her friend who invested Ksh. 550,000. She is now filled with regret as the backfired investment has left her sick and in shock. To prevent the prevalence of such cases, the Central Bank of Kenya has issued a statement to the public warning Kenyan banks not to deal in cryptocurrencies which are still unregulated and notably risky.



2 Comments on "The Continuously Worrying Surge of Cryptocurrency Ponzi Schemes"

  1. Interesting read

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