Ponzi schemes and pyramid schemes work because new money comes in and pays the previous investors.
And then it doesn’t work.
Perhaps the cracks are forming and people are starting to come to the conclusion that something that seems too good to be true actually is.
Then things start unraveling.
Let’s take Qoin for instance. Qoin is the latest pyramid scheme (in my opinion) happening in Australia and New Zealand right now, and it’s starting to unravel.
Ponzi schemes and pyramid schemes work because new money comes in and pays the previous investors.
And then it doesn’t work.
Perhaps the cracks are forming and people are starting to come to the conclusion that something that seems too good to be true actually is.
Then things start unraveling.
Let’s take Qoin for instance. Qoin is the latest pyramid scheme (in my opinion) happening in Australia and New Zealand right now, and it’s starting to unravel.
Initially Qoin’s internal off ramp platform BTX allowed restricted sales of up to $1,000 per day, during working hours and on a loss on the spread, this sparked a wave of buybacks so Qoin’s reserves could not purchase their way out.
Within a few weeks the limit was lowered to $500, and as of today it is even lower: $250.
But if you can get your sell order through, chatter on social media indicates this is not often the case, as the buy backs are more and more covered by reserves.
Once this happens it is TEXTBOOK Ponzi scam playbook that ‘technical issues’ will start to happen. At first they will be very short in nature, in order not to induce panic and so it starts to feel normal.
Ultimately, the ‘exchange’ will continue to be down for longer and longer periods of time, shortly before they disappear altogether.
Meanwhile, negative comments on social media will continue to be removed, as interesting explanations, the people ‘invested’ desperately hope, will calm the masses.
Qoin police will say what is appropriate for the overhead costs of a business and how much money business owners need to make from selling their services and products.
Merchants won’t take it, so people are selling in panic.
Qoin is an example of an exit strategy in play, in real time – in my opinion, etc. etc., etc. No accusations here, if it looks like an exit scam and smells like one, maybe it’s just all lollipops and rainbows.
Source credits to Reddit and Qoin.work
#Ponzi #Scam #Qoin #crypto #cryptocurrency