Cryptocurrency scams and pyramid schemes will always be present. One Chinese project, called PlusToken, is currently generating a lot of attention. It seems this project raised roughly $2bn worth of Bitcoin and has now begun liquidating it. While the evidence is still circumstantial, it would explain the current bearish market trend.
The PlusToken “Ponzi Scheme”
It is still a bit early to definitely claim PlusToken is a Ponzi or pyramid scheme. Although the promises made to users are dubious at best, that can always be easily explained. The company aims to bring cryptocurrency to the masses by offering an investment option which is not necessarily all that legitimate. As has been the case with most assets or tokens issued in recent years, very few statistics seem to add up. This is part of what attracts so many cryptocurrency investors, and also causes significant losses over time.
Although the PlusToken website is seemingly offline, a cached version can be found through Archive.org. The website claims how this new token…