If it Looks Like a Duck ...
Come One, Come All! Here we have the Greatest Show on Earth! Before your very eyes, we'll make your Bitcoin VANISH! That's right folks. Give your coin to CoinDouble.net (the name itself lends way to potential bullshit), and you coin will double!!
The only problem, is that the duplicate with be a negative (for the math wizards out there, 2 + -2 = 0).
Not only is this a Ponzi scheme, it's not even a good Ponzi scheme. It's a terrible Ponzi scheme, so bad it's hilarious!
This is an example of a Ponzi scheme so transparent, they might have well just painted "Ponzi" on the front page. The real shocker is that there's hundreds of "investors" on the website, which makes you wonder if anyone actually is getting a payout. The reporters we spoke with gave this a try and both lost everything they put in. Each deposit generates a new wallet address, and the "count down", is an apparent stall tactic.
What is a Ponzi
A Ponzi is an illegal scheme, where investors are paid interest from the enrollment, or investments of new investors, rather than any actual earnings, or sub-par earnings. Sort of like what a bank does with your money when it's in your "savings account", or a "CD", the difference being they actually make it work and have backing, Ponzi's rely on new investments, and never get ahead, ultimately crumbling and leaving new investors paying the bill.
Allot of times, people don't intend to create Ponzi schemes, likely in the case of GAW Miners, they never meant tom, but the math just didn't add up and they most certainly ended up a Ponzi. I'll say "allegedly".
How to Avoid a Ponzi
Here's a basic two rule tip:
- 1. If it sounds too good to be true ... it is
- 2. See 1
Let's look at the anatomy of CoinDouble, the 1st thing you read on their website is: Double your money in 100 hours. Now that's a red flag. If you give them $10,00.00 on Monday, and you're to expect $20,000.00 by Friday, that is too good to be true. If it was, no one would be doing anything but giving these folks money, which apparently is also happening, but even the most skilled trader on planet earth is not going to be able to consistently turn 10k into 20k every 4 days. It's just not possible.
We'll keep an eye on this, but really, it's not news. Anytime you have something like this, it's an obvious scam. Perhaps not always a Ponzi, but if it looks like a Ponzi, and walks like a Ponzi, it's a Ponzi. Just like the fucking duck.