eCoinPlus: Another Scam and Warning Signs
There have been a whole host of new Ponzi schemes that have hit the market recently, requesting users to deposit Bitcoin, claiming they will receive double returns within short time frames. I had been following eCoinPlus.com, a new service that sprouted from out of nowhere last month in May. I was surprised by how many people were legitimately "investing" in it. I just kept tabs, knowing some news outlets would pick up on it eventually. Coin Telegraph finally did.
Then yesterday, lo behold, the site wouldn't load up. After a little research it seems that those running eCoinPlus took their profits and ran. Weren't there any tell-tale signs? Red Flags? Let's go over the warning signs and hope that investors can stay smart and avoid these terrible scams that go after the greedy and the desperate.
Promise of High Returns
Claiming that investors can see guaranteed returns of double their investment within 25-50 days is hard to believe by any stretch of the imagination. How did they plan to provide such high returns? Supposedly they use arbitrage opportunities to earn scraps moving Bitcoin from one exchange to another while buying and selling.
We all know the current difficulty of moving Bitcoin from one wallet to another in a timely manner. On top of that are fees associated with sending Bitcoin to another wallet and then dealing with trading fees on exchanges all before the before arbitrage opportunity is lost. Nearly impossible to pull off. To think they could invest perfectly to over double their own earnings in order to pocket some for themselves in such a volatile market is ridiculous. RED FLAG
Lack of Transparency
Who exactly are the "investors"? Nothing was provided. The About Us section contained the reason why they existed, not who they were aside from supposedly being highly experienced investors. Does that actually provide confidence? For many, it was enough sadly. RED FLAG *Note: Image above comes from competing service Jet Coin. Since eCoinPlus is no longer available this was a comparable example.
Tech Housed in Singapore?
The marketing machine highlighted how their servers were located in Singapore... hence all account information would somehow be secure? How exactly does this point provide any sort of confidence? RED FLAG
Pyramid Scheme:
eCoinPlus had a system setup to earn more by having other users sign up underneath the user's account. RED FLAG
Influencer Marketing
This is where it got really bad. eCoinPlus reached out to respected influencers to promote the service. Look up eCoinPlus on YouTube and you'll spot so many pitch videos on it.
One of the biggest influencers was a 16 year old by the handle Crypto Nick. Nick had built up a tremendous following and seemed on the up and up, until this. Greed seemed to take over when he put together a video promoting eCoinPlus while claiming he knew someone who vouched for their credibility with no further details provided. He's young and it's natural to fall for get rich quick schemes, but as an influencer there are added responsibilities when making tall claims. Of course, for anyone who saw his or other influencer videos on eCoinPlus and went with it, the onus is ultimately on them. RED FLAG
Ponzi Schemes will never go away. Be wary of similar services
These sorts of Ponzi Schemes come and go, targeting users who want to get rich quick without doing do diligence and not trusting common sense. It's truly unfortunate. And I do get it. The dream of financial freedom can be so powerful that it can cloud our judgement. The fact is we're already getting tremendous gains in crypto, in an already highly speculative space that could implode at any time. Is it worth it to throw in additional uncertainty on top of that through such "services"?
So what are the other services currently in the space?
There are programs Gladiacoin.com and Jet-Coin.com who run similar schemes and the Red Flags of eCoinPlus are exactly the same for these other programs. With zero accountability, no knowledge of who represents these fly-by-night shops, it's incredibly concerning that they still exist. However, with cryptocurrency still living in the Wild West with few laws governing or regulating them, groups like these can operate and get away with quick cash grabs and no consequences.
Stay safe and let's all do our homework.
A lot of scam with the Bitcoin. Fortunately there are people like you to protect us. Thank you very much I will follow you. Good job
You're most welcome. I'm glad that you found it useful :)
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Eye opener post. Now we have companies calling retirees to open Bitcoin IRAs, need to check on them.