Pyramid Scheme
Welcome to the era of digital promises! If you've ever come across an advertisement saying “Invest in our token and you'll have a life worthy of an influencer!”, then you're in the right place. Let's dive into the fascinating (but dangerous) world of ICOs and pyramid schemes!
The Arrival of the Good Investor
Imagine our protagonist, whom we’ll call Juan. Juan is a curious guy, a cryptocurrency enthusiast with one eye on opportunities and the other on viral trends. One day, while browsing through his social media, he stumbles upon a post that said “Invest in the $HUMO token and your dreams will come true”. Juan, excited, thought “Why not? Just a small investment” and, without thinking twice, clicked on the link.
The Magic of ICOs
As a good digital explorer, Juan now finds himself on an attractive website full of bright colors and promises of wealth. He reads a bit more and discovers what an ICO is. The host of the podcast CryptoRoast perfectly summarizes it: “It's like a token presale. You just need a PDF full of graphics more futuristic than a science fiction movie to attract investors.”
Juan nods, a bit more confused, but sure he’s a genius for having found this “opportunity”. He feels like the star of a superhero movie, about to become the new millionaire in the neighborhood.
The Encounter with the Pyramid Scheme
But that's not all. On his digital journey, Juan also starts hearing about pyramid schemes. A friend tells him: “Listen, buddy, not everything that glitters is gold. There’s a place where new money goes to old money, like in the best (or worst) soap operas.” What?! Thinking this sounded like the recruiting stories from his cousin the "brother-in-law" who always talks about the latest “profitable” businesses, Juan decides to investigate further.
The Heartbreaking Similarities
It was then that Juan realizes that both ICOs and pyramid schemes have more in common than an aunt Rosa's birthday party: they both depend on “ridiculous promises” and on recruiting more people. Juan laughs, thinking that for two such different models, they are very dependent on the same type of "phenomenon":
Promises like “This token will be bigger than Bitcoin” sit alongside “Invite two friends and you'll become a millionaire.”
And let's not forget the lack of clarity on how they generate value. Anyone could think they’re tending to a magical garden where coins bloom on every corner!
Juan starts to see himself as a character caught in a tragicomedy.
The Red Flags You Shouldn't Ignore
As Juan investigates, a vital piece of advice presents itself: the “red flags”. With the voice of the podcast CryptoRoast resonating in his mind, he notes:
Anonymous team: If their photos look like they were stolen from a stock catalog, beware!
A whitepaper filled with technical poetry: If there's no clear case of use, they might sound more like a cursed poet than a developer.
Suspicious tokenomics: If the creators are seeing profits before you’ve received your first token, it’s time to run!
Juan now feels like a superhero of investment, armed with his list of warning signs. In his mind, he reads between the lines like a financial analysis expert.
The Final Revelation
Juan decides that, while cryptocurrencies are exciting, it’s not worth falling into a trap. “That instant millionaire thing sounds too good to be true. I’d rather keep my savings and throw some love in the form of memes to my friends,” he tells himself.
Deep down, Juan knows that ICOs can be legitimate, but most of the time they are just a glamorous masquerade for pyramid schemes disguised as shiny opportunities.
So, if you ever feel tempted to throw money at a project that seems straight out of a science fiction movie, remember Juan and his adventure.
Research, common sense, and laughter are your best allies in this high-stakes game!
Source: Podcast CryptoRoast
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