Many of us might have heard of the #ATCC, a coin which promised huge returns if one holds them and make people join them. They have even claimed that they can give better returns than #Bitcoin #Ethereum, #Ripple all put together.
Wait... Have you heard of the term #MLM (multi level marketing) and ponzi schemes?
If not, go through this Wikipedia link....
https://en.m.wikipedia.org/wiki/Multi-level_marketing
Look at the image above....
You might see many of the people who are early investors claiming that they have got #millions by investing in these kind of schemes.... Thats what happens in a pyramid scheme.... People jump on that hype, looking at the hyped success story of less than 1% of the investors and take judgements based on that.
These "smart" people use the initial 1% of the investors to promote their product (ATCC in this case), so that more people are emotionally drawn into the "get rick quick" scam.
They have outrageous and unfounded claims that whoever will invest money will earn huge, they will #manipulate your mind in such a way with greed that you will end up investing there no matter what your financial condition is. And they will never give solid answers on how you earn... Their main target is to dump you into a chain so that they can maximize their profits.
So what essentially happens is this, a person named 'A' buys some #ATCC for, suppose 10$.
(I didnt track ATCC prices so whatever prices I have mentioned is just for an assumption, but thats how the scheme works)
Now essentially what you own is valueless..... Thats deep down in a hidden term and condition.... You have to make people join your network, Join ATCC network and invest in it.
Similarly, more the people who join the network, more will be the value of that coin. A can sell off the coin after some people join right? So whats the catch?
ATCC comes with an 18 months lock in period... So whatever #profit they show to A is to just increase his/her greed, and in the 18 months, A's greed will trigger A's friends' greeds and thus in this way, a chain reaction will carry on.... By the time A might have earned a few bucks... But remember, the money which A earned came from A's friends.
Let's say A refers 10 of A's friends ....
They have all bought ATCC.
Now in order to gain profit, those friends will have to refer some more people and dump them in the chain so that they make profits...
So you see this dumping on to the chain is increasing exponentially. So are A's earnings.
Once A refers another people, A has to make that person buy some more ATC, so A gets some commission.
The other person again refers another person, and A gets a part of what he/she earns from commission as well....
Thats what Multi level Scheme is about. There is no end to this chain.
By the time A is done referring and dumping 10 people into the chain, those 10 people will follow what A did. So in the next level there will be 100 people.
Those 100 people will again do what A did
And every time you see A is getting benefitted the most, then A's friends, and this reward decreases exponentially...
Look at the image to see how disruptive and unfair it is to the people down the pyramid .... Th image shows on a scale of refering 6 people. And many more levels. I have taken the example of 10 people and 3 levels ....
Not all the people would like to join this chain... There will be certain people who know about these schemes and back out of these immediately.
And there are some people who cannot refer any more people because no one is interested.
Thats when problems start to arise.
Many people would have already invested huge amount of money, waiting for some significant gains....
They are at the bottom of the chain where there are no more new people to be introduced in the chain. So if the chain stops at the third level, in my example, already 1000 people would have lost their hard earned money buting nothing but trash.
That's what happened to ATCC.
And this ATCC #duped thousands of people and those people have already lost faith in Bitcoin, Blockchain technology and everything.
These things inhibit the growth of new #technologies in nascent stage.
Because of these #scams people are afraid ro invest in bitcoin or any other #cryptocurrency.
99.9% of the people in this world dont know about #blockchain, and how things work....
They believe in #profits.
Once you have profit, a crypto is good, once you have loss, the entire cryptocurrency ecosystem is at fault.
And negative rumour about #crypto spreads faster than a wild forest fire
So instead of dreaming about earning huge, study the market. There is nothing as "free money" . You have to be educated on how a thing works, what is the mechanism of money flow, who are benefited, and then only you can earn something solid.
Uneducated people having greed falls prey to these scams easily and the cheaters make money and flee.... They dont care about the future of the world, they done care about your future... They only care about making money fast by duping people in MLM schemes...
I Strongly advice everyone to make informed decisions, make thoughtful investments in good projects instead of these scams. Also another Scam yet to be exposed is bitconnect coin.
We shouldn't let these scammers take a toll on the blockchain world. Cryptocurrency is getting negative image due to these scams.
Stay tuned.... And as a #steemian I would #love if everyone spreads this #news so that no one is scammed.... #keep #crypto #safe
#lets-vote-for-scam-free-world
#Ban-ATCC
#BAN-MLM
#BAN-PONZI
@sanjayrai @indcrypro @anomaly @kimchi-king @randowhale @shrenik @someguy123 @steemitboard
@zeartul @tipU
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