Categories: Business

What Is PlusToken Cryptocurrency Scheme?

The history of cryptocurrency starts from the year 2009 when an anonymous programmer named Satoshi Nakamoto finally put forward a white paper for the entire globe. The white paper consists of the primary cryptocurrency named Bitcoin, and the protocols related to its functioning.

Along with crypto assets, he forwarded the concept of blockchain and other decentralized assets. At that time, everything related to the digital world was quite a new thing for the entire globe, and as soon as awareness and technology got advanced, people started exploring this concept. Nowadays, a secure trading platform like the Bitcoin System is essential to become an expert trader.

As a result, several new customers and investors started associating themselves with the chain, and sooner the concept got popularized. On the one hand, where genuine people were exploring the investing strategies in this new zone, there were a few who were busy making plans for a scam. In this blog, we are going to discuss the biggest crypto fraud of all time, named The PlusToken Scam.

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Background Of PlusToken Scam

The story of this scam starts from the point of time when Mt. Gox exchange collapsed in the year 2014. The major reason behind its fall was a hack in the bitcoin system leading to around 900,000 Bitcoins lost to anonymous users. If valued at the present date, the cost of the same would be around $100 million.

Another scandal named QuadrigaCX scandal is another deceiving scandal that took bitcoins of around $190 million, and even the owner was not spared from the theft. The PlusToken scam is the youngest of all, and its origination dates back to China, wherein some of the scammers promised certain users and lured them into a deception of expected returns of upto 30%.

The claim was later identified as Ponzi and before that could happen, around $6 billion were already lost in the scam. Many arrests were made after the scam was finally published, but the investigation could never get completed and is still running.

False Claims And Promises

The word Ponzi schemes are very popular in the field of cryptocurrencies and as a result, is a topic of discussion. The word was named after the famous person named Charles Ponzi who after moving to America joined the postal services in 1919. These schemes attract their victims by luring them into a false claim of high return rates and other diminishing returns that completely brainwash the customers’ minds for a bounty of return.

They fulfill their promises for a small bunch of people who after knowing the same invite other users for the same process. This is the time when the actual game starts. The Ponzi scamsters then suddenly stopped responding and flew away with the funds and assets. Thus, Ponzi schemes are similar to pyramid schemes but with completely different outputs.

Legacy Of Ponzi

Inspired by the tactics of Pozi, many new scammers are now following the trend. You would have encountered an advertisement while surfing the internet or handling your exchange that claims manifolds return, and their website and advertisement tactics are so good that it feels just real!

On clicking the advertisement, one will be redirected to an external page that will have the information filling forms and other forms that ask for your credentials. After filling the same, the entire process of downpouring requests for investments and other promises pops up. If everything is good you can expect a return but if you are already set as a victim, then your chunks are ready to vanish soon.

Keeping the same in mind, one should be aware of these frauds and should keep himself away from these alluring tactics.

Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.