Cryptocurrency schemes which are trending these days

Schemes Lead Victims! Is It True? Cryptocurrency is a digital asset, or you can say it as an internet-based medium of exchange that uses cryptographic functions in order to run financial transactions on the go.

An important thing about cryptocurrency is, it is not controlled by any central authority and thus its decentralised nature immunes the old ways of government and banks. Due to which you can buy crypto instantly with debit card.

The Cryptocurrency Scheme

Due to the massive progress of cryptocurrency in market and business, some form of fraud or schemes is introduced that attracts investors through unusual ways to invest their money through crypto to fiat debit card and get profit according to their policies.

Some schemes which are trending these days

  • Crypto Ponzi Scheme
  • Pyramid Scheme
  • Matrix Schemes
  • Pump and Dump Scheme

Crypto Ponzi Scheme

Did you face any fraudulent scam in the past? If no then let us tell you some basic schemes that you should avoid.

In the list of cryptocurrency schemes, one of the most talked-about and trending schemes is Crypto Ponzi Scheme. Charles Ponzi, owner of this scheme firstly orchestrated in 1919.

This scheme would be described as;

“A fraudulent investing scam that promises for giving high rate return with creating little risk for investors. This scheme producing returns for early investors while acquiring new investors”.

The base of Ponzi scheme located on using funds of new investors in order to pay early backups. This scheme was eventually backed down when the arrival of new investors stops and there is no money to go through the further processor. At this point, this scheme gets unraveled.

Role of Arbitrage in Ponzi Scheme:

In past, postal service of that time issued International reply coupons, which specifically used by the sender to purchase that selective postage and then include it into their correspondence. The receiver may take that coupon to the local post office and then exchange crypto debit cards us and coupons from priority airmail postage stamp.

In this case, Ponzi hired agents in order to buy that reply coupons on cheaper rates from other countries and send them to him. After that, he exchanges coupons for stamps that were more expensive thus gain profit. Read more about cryptocurrency.

Surprisingly, that exchange called Arbitrage which is not a legal act and illegal for government officials. But Ponzi didn’t care about it and expand his business while using highly rated crypto debit cards.

What’s about Red Flags in Ponzi?

As technology changes by day and night, so Bernard Madoff in 2008, convicted that regardless of the technology used in Ponzi scheme, most prominent and share characteristics to consider;

  • Promise should be given for high returns with little risk.
  • Regardless of the market situation, the consistent flow of returns would be carried out.
  • Most of the investments are not authorized and registered with the SEC.
  • Clients have no right to view paperwork shown for their investment through crypto pay debit card.
  • In order to remove money, clients are facing multiple problems to use the virtual crypto debit card.

Pyramid Scheme

Now let’s have some words about Pyramid Scheme. This scheme existed for at least one century in different guises.

We can classify this scheme as;

A business model that recruits external members through the promise of payments for enrolling other people into this scheme rather providing them profit or selling products.

For Pyramid scheme, institution compels people who want to make healthy payment in a short time. In exchange, the institution aims to welcome new members as a share of the money taken from any upcoming member through crypto debit cards that they hired. Directors of that institution also took their share from this. Read more here.

Are you looking for some main points that these schemes belong so here you go;

↔ Such institutions gain a huge level of profit in the name of sales product or services with values.
↔ The overall scope of the pyramid scheme follows the mathematical exponential growth quite closely.
↔ Every level of the Pyramid is much higher than the previous one.
↔ Pyramid scheme makes sure to make money for everyone who enrolls into it, so it would expand automatically.
↔ People who work for pyramid schemes are trying to promote the actual company instead of the products they are selling with the help of the best crypto debit card
↔ People on the upper layer of Pyramid profit in the form of money, besides the lower layer people lose their money.

Matrix Schemes

As per the cryptocurrency model, Matrix scheme uses the actual but same unsustainable methods just like a pyramid. But here cryptocurrency investors pay from virtual debit card crypto to join a waiting list for the desired product.

This scheme uses the same law as used by Pyramid scheme but after a short span of time, they doomed to collapse. Scheme of such type operates like a queue in which a person at start receives an item and them after list of people joined queue supposed to be ended.

The main theme of this scheme is;

“A person or joiner is required to buy an expensive item for making their strong position in queue”

Due to some policies of this scheme, some countries ruled this matrix scheme as legal.

Pump and Dump Scheme

Another well-known scheme for the cryptocurrency is Pump-and-Dump that officially attempts to boost up the price of a stock through recommendation like falsely and exaggerated statements.

Did you know that these schemes were done by cold calling? But after the invention of the internet, the work for this scheme become more prominent in the market. Fraudsters post adds online for selling stock quickly which claims to put every single information inside the share’s price.

This cryptocurrency scheme usually targets micro and small-cap ads as they can easily manipulate it. Isn’t it an amazing deal that this scheme can be perpetrated by anyone who can assess onto this? Read more here.

POP Culture in Dump-and-Pump:

Did you know? Dump and Pump scheme originated the central theme of two popular movies named Boiler Room and The Wolf of Wall Street. Both of them are picturized in a warehouse that was full of telemarketing stockbrokers pitching penny stocks and go through from crypto exchanges that accept debit cards.

Avoiding Such Dump and Pump Scheme

Due to some misleading properties of this scheme, one should avoid it as many noticed were coms from paid promoters which should not be trusted. Some Keypoints should be noticed while avoiding this scheme;

  1. It is an illegal scheme which promotes stock price based on false and misleading.
  2. This scheme usually targets on micro and small-cap stocks.
  3. People or Insiders who found guilty are subject to give heavy fines.
  4. Such a scheme gives an inappropriate look of cryptocurrency thus have to avoid immediately.


In the end, we can say that all schemes of such kind didn’t give a good image of cryptocurrency. Therefore, some were banned, and some were closed due to some poor coordination between joiners and sellers. In order to enhance the business of cryptocurrency in business, one should have to protect himself from such fraudulent ways or tricks which would spoil their business. If you want to grow up your business with massive growth so you should avoid such scams

In this article, we are discussing the main cryptocurrency schemes in detail in the next one, will discuss the most important trends and upcoming news about cryptocurrencies. So, stay connected with us.

Good Luck!