From trade hacks to propped-up ICOs to crooked investor schemes, Ponzi schemes in cryptocurrency markets have been layered to defraud billions of dollars from naive buyers, and in some instances, have succeeded.
The latest report by Longhash highlights three such scams and their valuation just about the highest-10 coins. Onecoin, Bitconnect, and GainBitcoin had been used as the requirements for the scams within the cryptocurrency market.
Onecoin, recognized as the “gold standard of Bitcoin-dependant Ponzi schemes,” garnered a whopping $3.8 billion. The mission was titled a “pretend cryptocurrency,” with “no utility” that was exchanged on a Onecoin website with doubts over a precise blockchain for the cryptocurrency.
Bitconnect was based on providing over 40% month-to-month dividends to these holding the Bitconnect token. As per the FBI, Bitconnect siphoned between $2.5 billion to $3.5 billion from its quarries, inserting the scheme firmly in CoinMarketCap’s top-10.
GainBitcoin doesn’t come close to Onecoin and Bitconnect, taking just $300 million in scammed-valuation. On the basis of cloud mining and unbelievable returns based on GBMiners mining pool and the MCAP token, the person behind the rip-off, Amit Bhardwaj, paid $1.5 million in bond to get bail.
Longhash charted the scams in reference to the top-10 and revealed that Onecoin would rank 9th, whereas Bitconnect would take 10th, with GainBitcoin removing BitTorrent to take the 32nd spot.
In hindsight, the truth that these scams can gather more in market cap than initiatives like Stellar Lumens [XLM], which is working with IBM on banking options, needs to be regarding for the bigger crypto-trade. Longhash dodges to the same, stating that this relativity ought to provide viewpoint as to what number of digital currency initiatives bring “precise value and utility,” to the blockchain space.