‘Most scam investments will come looking for you’ – cryptocurrency expert

A cryptocurrency professional is warning individuals if an funding alternative seems to be too good to be true, it could be a rip-off.

This comes because the Commerce Fee has issued a ‘Stop Now’ letter to Shelly Cullen, a promoter of Lion’s Share – a suspected pyramid scheme.

Lions Share encourages individuals to pay tons of of {dollars} to affix the scheme, within the hopes of being rewarded in cryptocurrencies from every new individual they enroll.

On receiving the letter, Cullen informed the Fee she had stopped selling the scheme.

Janine Grainger, a bitcoin and cryptocurrency retailer, mentioned that whereas this kind of scheme had all the time been round, cryptocurrency was offering a brand new automobile for them to happen.

“Most of this may unfold via phrase of mouth and community advertising, so it appears to work very strongly inside explicit communities,” she mentioned. “The work Shelley’s been doing is a very good instance of that, the massive variety of followers she has on Fb, individuals getting their associates and whānau to enroll and take part and it strikes by that community impact.”

Grainger mentioned Lion Share lacked real worth creation or gross sales of a services or products.

“The cash that’s within the system and the cash that you just get from being within the system is solely funds put in by new recruits.”

She mentioned individuals ought to be careful for funding alternatives that land of their lap and appeared too good to be true.

This might embrace a chilly name or e-mail inviting somebody to affix a scheme, or an article a couple of movie star making some huge cash.

“In my expertise, most rip-off investments will come searching for you,” she mentioned. “These types of issues are scams, whereas a very good funding, you might want to exit and do your analysis to search out it.”