With Scammers Capitalizing On Altcoins Surge, How to Spot New Ponzi Schemes? How to spot them Bob Wood, CEO at Nexxus Partners, tells Cointelegraph that cryptocurrency scams abound from the perfect storm of a major disruptive technology and the uninformed public. Wood explains how the average non-technical person can identify these scams early on. Look at: MANAGEMENT Who are the people behind the cryptocurrency? Are they trustworthy and competent? Are their names and resumes published for the public to review? Do they have a Google trail of promoting other scams? Do they have an experienced technology team behind the cryptocurrency? These are some of the questions that should be clarified by an investor towards any given prospective venture. VALUE CREATION For entities that are out to promote a given cryptocurrency, questions should be asked about how they are creating value with their cryptocurrency? Are they providing retail products or services as a value to the marketplace to generate a profit? Why would anyone buy and use their cryptocurrency? What user benefit will be derived, outside of speculative trading? RETURN ON INVESTMENT Every investor should be wary of claims of receiving an unusually high and fast return on investment. Some scams claim 1-2 percent of daily earnings or 100 percent monthly earnings. Obviously, too-good-to-be-true, but it hypnotizes the greedy into irrational thinking. The reality is that all or most of the returns on investment are being paid from new investors money (i.e. Ponzi scheme), that always collapse eventually. CLICK HERE TO EARN FREE BITCOINS
