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One day before Plustoken fall apart, the official account of Shenzhen Police Department got “attack” from some investors .
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"We all use it as Yu'E Bao and the earnings return to account on time every day. Why it stops working out of sudden?” He Xiaoli did not know what to do. She’s afraid to tell the news to her husband and mother, because there are hundreds of thousands of money was supposed to be the elderly pension money.
Behind the meltdown of the Plustoken is the disappearance of ￥30 billion from 3 million users.
No one knows how much money in there is the elderly pension money, how much money in there is the children's education reserve fund, how much money in there is the savings from years of hard working life, no one even know how much money in there is through usurious loans, small loans or even net loans to get the money.
Not only are these users facing losses on their investments, but they are also facing loans that they may not be able to pay interest on, plunging them into a terrible blackhole of loan that they cannot come back on their feet again
To be honest, those people who participate in Plustoken are not t stupid. On the contrary, they are very smart.
They are just greedy. About the Plustoken - No.1 fund plate in token field, what is the rules of it? I didn't really get involved, but I got the general idea. After all, it was pretty much the same.
Plustoken is a capital project of tokens which was created in April 2018(crowdfunding started in Feb.). The full name of Plustoken is Plustoken digital currency arbitrage quantitative trading wallet, whose declared business model is to carry out arbitrage in different exchanges.
In short, users purchase bitcoin, Ethereum and other mainstream tokens in the exchange. Transfer money to the Plustoken and obtain the corresponding divided – Plustoken token.
How do you get the profit?
Just as mentioned above, it is the same as Yu’E Bao. All you have to do is put the token in the account and then you can receive dividends every day with a monthly yield of 10% and an annual yield of more than 100%. They claimed that there were professional teams to carry out risk-free arbitrage activities such as doing basic transaction, arbitrage and quantification. If you think that return is high enough, then you still underestimate the power of the game. At the same time, the Plustoken rises constantly, which is said to increase by hundreds of times at the highest point.
Huge profits naturally cause huge desire so what if you’re still not satisfied with all the profits? You can invite others to join you:
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Invite one person to get 100% of al-dog’s profit.
Invite 10 person to get 10% of al-dog’s profit from the second to the tenth.
Large user’s demand is 10 level of al-dog worth $200,000 and infinite 5% of al-dog’s profit.
Next level is to invite 3 large users and get infinite 10% of al-dog’s profit.
The biggest one is to invite 3 smaller levels and get infinite 15% of al-dog’s profit.
Simply speaking, the more people you bring in, the higher return you will get. With an acceptable approach of money and enough bonus of inviting people and the development to small cities and even villages, Plustoken continues to be used. And to be maintained, it need to make more and more people especially those who already make profits here to fully trust Plustoken.and to keep investing, making the bubble bigger.
However, there is no practical value behind the whole game so at the end of day, it’s still nothing but a Ponzi Scheme, waiting to fall apart.
Besides Plustoken, there is another well-known scheme calld Qubu that only picking up people from small place. At the beginning of Qubu, it collects a batch of funds through real-name authentication to finance its own team operation. Later, through a so-called earnings by walking to attract a number of ignorant people to participate. If these people stop putting more money in the account, there is no money-lost for them. If they keep adding money to the account, they are waiting to be scammed. Then it’s basically the same way to attract more people, pyramid selling and individual investing companies.
It’s always the same trap with different names, including the viral mode-coins, resonance coins and so on. There are others trending modes in the industry such as cloud-mining and cloud-calculating which are all scams. Of course, there are some legit platform but not many actually have mines and mining machines.
Stay on guard.
The reason we are concerned about the recent events is that we have found that some common concepts in the industry like “digital tokens”, “blockchain” and “quantitative trading” have been used in many schemes. And every time they crash, the headline in the news always involves digital tokens so there are many people believe token itself is a scam.
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In fact, there have been a lot of people think this way. They would tell you to be careful if you tell them you are in the game.
Such scams increasingly illustrate two things – the concept of blockchain is trending and the fact that digital token is indeed a particularly good asset transfer tool.
There is no need to further explain the first one. The concept of blockchain is just a popular concept. Those pyramid selling teams used a lot of different concepts. From the earliest Amway derived health care products scam to the subsequent equity investment scam to later P2Pnand other internet finance, they like use the same routine and they can even create a project that fits into a national policy. For example, there was a project focusing on the western before the development of the western regions and a project to enter the west was created and later there was the Belt and Road Initiative project for the program.
The name is always changing and an reasonable high yield and promises are constant.
Here is the logic behind it:
Promise you a high return. You may not believe at first but with a variety of high-end technology projects and blurry words to brainwash you to accept their whole idea. Once you believe them, you will spontaneously pyramid selling to your friends in order to chase a higher return.
Secondly, it is known to all that it’s obvious that token would be used for scam due to its anonymity. 3M was the first to use bitcoin to play a pyramid scheme on a global scale, which made many people find out how easy to use bitcoin for scheme. The collection is not transparent so it cannot be frozen by the bank and it’s easy to just carry on and run away.
These are the two reasons why there are so many pyramid schemes using tokens and blockchain.
In fact, most of people know this kind of high return does not exist. The market is free and an extreme high return will naturally flow in with more capital, eventually adjusting all the profit back to a normal level. But there are still a lot people chose to believe and invest more than they can afford. Why? Probably greed.
Victims are pitiful. Let’s just hope there won’t be any victims any more.
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