DagCoin Ponzi Scheme Evidence Continues To Pile
The OneCoin Ponzi scheme was a major scam that left thousands of investors with empty pockets and a dulled outlook on the crypto market. With the prevalence of scams like OneCoin’s, it is no wonder why many investors continue to be weary of approaching the newly-minted market with any kind of substantive capitol.
The scam isn’t alone, either. Thousands of similar schemes have cropped up in recent years, perhaps due in large part to the massive price spike seen by major digital assets like Bitcoin and Ethereum. As investors are eager to enter the new market, the naïve consumers have become the primary prey of savvy predators who disguise Ponzi schemes as legitimate cryptocurrency investment opportunities.
But as the saying goes, there’s nothing new under the sun. Luckily for investors, it has become easier than ever to recognize the cyclical pattern implemented by scammers looking to make a quick buck. In particular, recent realizations have placed “DagCoin,” a new startup on the blockchain, on the short list of probably Ponzi schemes within the crypto community.
A report conducted by Behind MLM found that the company’s newly released “Success Factory” program is but one of many pieces of evidence that the company is just a clone of a previous Ponzi scheme known as “OneCoin.”
Behind MLM first points out that the marketing strategies employed by DagCoin to push their “Success Factory” closely mimicked the OneLife program by OneCoin. They outline that the company tries to emphasize their interest in furthering education all over the world, especially within the area of technology.
The investigatory publication theorized that, much like the OneCoin program, the educational promise made by DagCoin is done with the express purpose of getting more people to invest in the currency, which will eventually have its value reduced to the rightful value of zero.
The site asks readers to recall the various ways that OneCoin attempted to weasel out of liability when they were accused of fraud. They would cling to the education argument, saying that they offered education to both investors and potential communities all around the world with the profits amassed from their ill-created currency.
The scamming technique used by DagCoin, much like OneCoin, is relatively simple. The company puts effort into getting people to buy into their currency and company with promises of cutting-edge technology and massive endeavors on a global scale. As the price of the currency begins to build, some investors will be able to sell their portion for a profit. Some may even make some real money off of the scheme.
But the key thing to remember is that the only people that profit from the company are those that get in early, and sell out fast. The scheme works because the guys that have the most stock—the creators—will sell once they believe that the price has reached its likely peak. Once this happens, the price will crash from the flood of previously unaccounted for stock on the market, and all investors caught holding their bags will be effective out of luck.
There’s nothing new under the sun, and this is especially true for a scam like DagCoin.