India is a big country and with that it brings several issues of its own when a new technology and currency system tries to break through to its economy.
Sometimes, people tend to be gullible, naive and also inherently greedy. In the rush to make overnight profits they get lured into get-rick-quick trap where they are eventually scammed out of their money.
These are one of the reasons for RBI taking extreme measures to curb use of cryptocurrencies in India. This is due to the fact that as the days roll on many new scams are being unearthed by law enforcement agencies in India.
Given these issues it's very difficult for policy makers to side with cryptocurrency enthusiasts asking for regulations. In-part lack of regulations are also to be be blamed for the on-going situation.
In the past few weeks we've heard of many new scams. The latest ones are MTC (Money Trade Coin) Scam and then there is the GatBitcoin Ponzi scheme. Infact someone even tried getting my money for the GatBitcoin scam in the past. But fortunately for me I've been around in this space a while to be able to differentiate between legitimate projects and scams.
But many have fallen victims to these scams. It's unfortunate but it's largely due to lack of ignorance as well as the desire to get rich overnight.
I'm not going to post specific details about the scams in this post as a quick search on Google will get you all the information you need about the latest scams or you can read here, here and here as well as the link in the image source above.
In the past I've tried my best to educate users of Steemit during my meetups and presentations and get them to make an effort to learn about each project they are investing their money into. Because inevitably everyone wants to know about the latest ICO or new coins where they can make 5-10x within a few weeks of its release. Unfortunately, that's not how markets work.
Cryptocurrency markets can potentially make you money overnight but if someone promises you that they will get you a specific percentage each month for whatever duration for your investment then run away as fast as you can!
The correct way to enter and exit cryptocurrencies are via exchanges or peer 2 peer. However, don't simply invest into any random shitcoin that is coming up with huge promises. You will burn a lot more than you fingers this way. People are ignorant about these facts and yet they want immediate returns. This has allowed many people to come with ingenious ways of trapping investors and robbing them of their money.
There are no dearth of ponzi scheme peddlers in India. Infact, cryptocurrency has given rise to several new ways of siphoning off money and laundering it into other countries.
Infact many investors who have lost millions of rupees are those who invested a lot of their unaccounted money into these projects. Back in the day it was E-biz, Qnet and other similar MLM Ponzi schemes that we've all come across in India at some point or the other. Now it's Bitcoin based.
India has become a land of ponzi schemes and you need to do you due diligence before giving your money away to anyone!
The lure of money is so much that even celebrities start endorsing things they are clueless about. Take example of Raj Bindra and the likes who promoted scams and are now in trouble because of it.
There's a lot of easy money to be made in crypto but it will bring with it, it's own share of troubles.
Beware and be aware cryptocurrency enthusiasts!
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