Leeks in the currency circle, how to avoid being cut? Here we teach you how to identify MLM coins!
(1) Blood loss of 200 million! Sichuan cracked the "Amacoin" pyramid scheme, more than 10,000 people were defrauded!
Recently, the Public Security Bureau of Yuechi County, Sichuan Province successfully eliminated a pyramid scheme criminal gang that was hyping "air coins" under the guise of virtual digital currency value-added services. It arrested 11 key members of the gang, froze more than 12 million yuan in funds, and recovered more than 8 million yuan in stolen money. . The case involves more than 10,000 people across the country, with a capital scale of more than 200 million yuan.
(2) What are MLM coins?
MLM coins refer to MLM activities that use high returns as bait under the guise of virtual digital currency, blockchain, etc. to make money through the development of offline and layer-by-layer rebates. In recent years, with the rise of virtual digital currencies, MLM coin cases have occurred frequently, causing huge losses to investors.
(3) How to identify MLM coins?
MLM coins often have the following characteristics:
1. Promise of high returns: MLM coins often promise high returns to attract investors. For example, "Yamacoin" claims that it can "make sure profits without losing money" and can obtain a steady stream of profits through "mining".
2. Need to develop downlines: MLM coins require investors to develop downlines in order to obtain benefits. For example, "Yama Coin" investors can invite others to buy "Yama Coin" to increase their level and computing power, and receive commissions and cash rebates.
3. No actual value: MLM coins themselves have no actual value, and their prices are completely determined by market speculation. Once the bubble bursts, investors will lose all their money.
(4) How to improve awareness of preventing MLM coins?
Investors should increase their awareness of preventing MLM coins and do the following:
1. Don’t be greedy for high returns: There is no pie in the sky, and high returns are often accompanied by high risks.
2. Don’t trust others easily: Don’t easily trust virtual digital currencies recommended by friends, family, or strangers online.
3. Conduct full investigation: Before investing in virtual digital currency, you should conduct full investigation to understand the technical principles, issuance background and market conditions of the currency.
4. Choose a formal platform: Choose a formal trading platform for investment, and pay attention to protecting the security of personal information.
(5) How to avoid becoming a "leek"?
In addition to the above points, investors can also avoid becoming a "leek" in the following ways:
1. Learn blockchain knowledge: Understanding the basic principles of blockchain technology can help investors better identify MLM coins.
2. Pay attention to industry trends: Pay attention to relevant news and information about the virtual digital currency industry and understand market trends.
3. Rational investment: Don’t blindly follow the trend, make rational investments based on your own circumstances.
(6) Warning:
The risk of investing in virtual digital currencies is high. Investors should invest cautiously, increase their awareness of preventing pyramid schemes, and protect their own property safety.