New Crypto Trading Scam Website Draws Attention from Investors on Reddit
The crypto community seems to be eyeing a crypto website as a potential scam due to its promise of major returns on investments. The website, called Doubly, allegedly uses a trading bit, which it claims to be powered by artificial intelligence as a bot.
When investors invest, the bot accepts the assets and the website promises that it then issues a significant return on investment.
According to a Redditor, though, the website may be a scam because it shields its fraudulent activities behind other business activities that are common to businesses in general. Those who visit the reddit post will find an extensive article about the website in question.
The post explains that “It's that classic ‘trading bot' scheme, the claim that they've developed artificial intelligence in the form of a bot that takes your investment, and it invests it better than you ever could, for quick huge returns.”
Further, even though the website makes claims about its registration, its outgoing payments, and the founder:
“NONE of these things are proof they have created a trading bot capable of 400% returns.”
Thus, it is reasonable to question the platform, its practices, and the claims that it presents. The platform also presents what seems to be a ponzi scheme, which means that it has a pyramid structure. New investors pay into the platform and then recruit additional investors, form which they earn commissions on.
Though the top of the financial pyramid seem to make some profit, if any, those who are recruited are the ones who truly find themselves in an unpleasant situation. Further, even though the platform does describe that payout have been made, the payouts are not proof that the payments continue, that they are reliable, and that the company will make them on a regular basis.
The best takeaway from this is that it is always important to question, verify, check, and to ensure that you are making the right decision concerning any investment. If you’re having concerns about a platform, then it is likely that others are as well.