Why there are so many people saying Xifra is a Ponzi or Pyramid Scheme?
In summary:
· Ignorance on how Xifra, DeFi, Cripto, MLM, Strategy, Cripto Trading, works.
· Lack of understanding of the economics.
· Misunderstanding
· Non experienced in Xifra, DeFi, Cripto, MLM, Strategy, Cripto Trading.
· Traditionalist point of view that believes DeFi is not risk worth taking.
· Governmental point of view where nonregulated is a model contrary to what government stand for.
· Anti MLM people that don’t believe this business model is viable.
· Out of context risk perceivers. Usually, people are unaware of common day risk they always take and when reviewing something new they review risks of the new topic, without realizing they might be taking same or more risk whenever doing a decision.
o For example, there is a huge possibility that a startup doesn’t survive the 1st year of operation. In 2019 the 90% of start up failed. Can you imagine someone deciding to invest in a Startup with 90% of chances of failing? So, if there is so high risk of losing your money, why would anyone start a business?... right the possibility of success and profit! The same applies to this.
· Defi Enthusiast that don’t believe in intermediaries of any kind.
· Haters that will not consider question themselves and their perspective even when there is evidence they are not right.
· People whose Business have been affected by Xifra as a competitor. From Banks and investment funds to economist and experts whose work depends on their specialized knowledge and is losing relevance as Xifra strengthen
o These are the most committed people to start debates, discussions, even pay influencer to excacerbate risks and seed fear into people’s mind. Just imagine a Traditional financial adviser in Mexico could offer investment compound yield in CETES of less than 6% yearly. When comparing to Xifra the APR is 48% in simple term and could work as compound yield depending on how you stablish your strategy. They are compiting with a Techonlogy that has 8 times better results than them.
· There is a common say in Traditional Finances to avoid scams and frauds; If you don’t understand it, don’t go with it. But that say doesn’t motivate people to learn, explore, and find the information to see the pros and cons of the opportunities thar are currently available, but we don’t know.
To be fair with these previously listed folks. This company has a complex business model and not because its difficult or impossible to understand, but for its novelty, innovative, disruptive, and even revolutionary business model. When people hear for the first time a business presentation of this company most of them think you are speaking Chinese just for saying Bitcoin, Crypto, Blockchain, Defi in the same paragraph. The MLM or Network Marketing has been criticized for many years due to the hierarchy chart of the compensation model and its similarity with pyramid schemes when inviting referring people. So I could understand the worry and some confusion.
So, should I ignore the warnings?
I would say you should know, review, understand and filter what the warnings are, and deeply understand their nature. Ask yourself: Are they coming from objective people or from people whose interest might be in Jeopardy? Is he prepared enough in DeFi o Cripto trading, hemp farming to review a company that works on these industries?.
Separate the warnings in Risks, measure those risk, and compare with the daily risk you take with your finances. Ask yourself what is the possibility to lose on Lotto Tickets? By the way there are more chances to be struck by a lightning and be struck again by it than to win a Lotto Ticket.
After having a deep understanding on how the numbers, the compensation plan, the company, leadership, industry, and the market if behaving, look which of those warnings are really backed by evidence and information not based on personal opinions.
For example: A Traditionalist Finance advisor, would say that there is no way a company could pay a 10% monthly in earnings.
1.- If an advisor says this, it is clear he doesn’t understand the compensation plan you will know there is no such thing as 10% earning. Of those 10% there is a 9% return when subtracting the 10% withdrawal fee. That 9% is not net profit, since 5% will be a Return on the BTC spent to buy the Plan/Digital Asset, and it will be a 4% net. By the way there are fees called Gas in the Blockchain that are not fees of Xifra but they will be subtracted before reaching your wallet by the blockchain.
2.- In traditional finances it will be hard to find a mechanism that could have 4% net profit monthly, maybe they could have it in stocks on specific occasions, industries, and markets due to a specific news but it´s not something regular. Banks and Brokers could have those numbers for themselves but we the common people are not reaching those benefits. But guess what, on DeFi there are many mechanisms that can make more than 4%. Just by trading and just considering the Bitcoin in the long run it has an appreciation that can pay several times the 4%.
Another example: A Traditionalist economist that wrote in Mexico news media Imagen Informativa, wrote an article saying that Xifra was a scam, due to the previous example´s misconception and it wrote in the article that Xifra Plan would keep the BTC for a year and a half and that user could not withdraw, he even mocked on saying this….
The sad thing about this story, is that when saying that you couldn’t withdraw it showed up that the “prestigious” economist, DIDN’T event researched nor correctly understood the company nor its compensation model. The information is basics in Xifra you withdraw with the minimum of 50 bucks any Tuesday or Thursday. The info is available in videos, presentations and even from Monday to Saturday at 8PM and 9PM Central Time there are live zooms. The information is there so why writing a review with incorrect information?
The point of all of this is that you should know DeFi is a new world that is being built every day. You must approach it with open mind and will to learn. The current Centralized Finance experts are not experts on DeFi, many are against it, many have been converted because they know they cant win the fight against mass adoption and tech trend.
I dont think the current economy experts are inepts when reviwing this company, but when writing they are exposing ignorance on many aspects of this business model, or at least I would hope so, because if It´s not ignorance, they are not writing in good faith and are purposely confusing and scaring people.
Make your own risk assesment, understand deeply how Xifra Works. But dont go too far when tring to know everything, take in consdideration there is corporate information that is confidential, rivals of Xifra and copycat surely would love to know the exact Trading strategies Xifra has. Even if Xifra would share in detail all the info, you wont have the time to review what 90 traders an and many more bots are doing. I do trading on my own and there are transactions of seconds and transactions of hours, days, or longer terms depending on the strategy and the market.
I love this topic! :)
