The return of the pyramid scheme
Influencers recrute young people by the bunch
IM Academy, Pips2Prosperity, etc... The names are all very flashy and attract young users through Instagram. The influencers attract these young users with flashy cars and exotic travel photos from all over the world. They project an income of at least 5000 USD per month, and possible passive income of hundreds of thousands of dollars per month. And that all through "trading", at least that is what they first tell you. But, the real story is that if you want to make money with it, you need to recrute others. A true pyramid scheme as we know them for decades.
Monthly subscription fees
The young guns get blinded by the beautiful lifestyle these influencers are leading, and pay the monthly subscription fees without hesitating. Mostly it is about 200 dollars per month. And in return they get a few videos about how to trade and are dropped in the wild. Needless to say, that 99 % of the people that enter don't make any profit trading. But start recruting others in hopes of making money that way. There are more and more stories like that coming out here in Belgium, and I guess it happens all over the world. The pyramid scheme is back, and crypto is dragged into the mess. As most of the trading happens with crypto.
But essentially it has nothing to do with crypto. People are lured in with amazing returns that aren't possible, but keep paying the monthly fees, as they try to make up for their losses by more trades and attracting more people.
Too good to be true
I am not talking about crypto here, but about these dodgy schemes. If something seems too good to be true, it mostly is. Don't get lured in, because there are a lot of those sharks out there!
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