Hello, and welcome back to the Scam Logs. Today, we’ll talk about a scam that is used on unsuspecting people: lending scams.
Here’s how it works: it’s a type of Ponzi scheme. It runs on the idea of lending Bitcoin or other cryptos to another person in exchange for a payment of interest.
The problem is what is really happening is that the money going in is used to pay someone else that already lent money before you. And around and around it goes.
As we’ve already covered Ponzi schemes in a previous post, I won’t go too deep into spotting them, but if the percentage of returns is absurd, or the information about how it’s running is confusing or vague, then walk far away. Bitconnect was huge before it fell. And trust me, you don’t want to be a person sucked into the next version of that. Most Ponzi schemes run on greed and misinformation—so don’t let yourself buy into that mindset.
And, on that short note, we’re done for the day. Come back next week for another episode of the Scam Logs. Be careful out there.