Comment on page
Since the birth of Bitcoin on October the 28th in 2008 when Satoshi Nakamoto published the first Bitcoin White Paper, the biggest problems in the Cryptocurrency industry started:
- Scammers hire developers to create get-rich-quick scheme scams to steal people’s hard-earned money.
- These Scams have destroyed millions of people's lives who have invested their hard-earned money, hoping to provide a better life for their families.
- High Yield Investment Plans (HYIP) - 90% of them are Ponzi Systems that interest new/beginner investors with promises of huge returns in a short amount of time by claiming to have an amazing Trader who guarantees a daily RIO of 2% - 5%. No trader is able to guarantee any % of ROI as the markets can be volatile and unpredictable.
- Fake Cryptocurrency mining farms - They don't possess real crypto mining devices/miners or promise huge returns on Crypto Tokens like TRX, which is a Proof Of Stake token. Proof Of Stake tokens cannot be mined.
- Pump and Dump schemes - that attract the rich and famous Cryptocurrency investors aptly named Whales. Whales are the largest crypto holders & control over $1 Billion in various cryptocurrencies.
- Whales have enough power and money to directly influence the value of an asset in the direction they desire which unfortunately is usually in a negative way, and are often referred to as The Market Makers / Movers.
- Whales will purchase the latest tokens and coins at the lowest prices in a presale event which Pumps up the value of the token and encourages the newbie crypto community that has not done their research to purchase large amounts of tokens before the value becomes too much.
- Whales take full advantage of beginner investors, and once the desired value has been reached they sell and effectively Dump the token to receive massive Returns on their investments.
- This subsequently causes the token to crash, leaving the beginner investor with little to no money.
- H.O.D.L. (Hold On For Dear Life) is a Crypto Industry term for users who hold large amounts of crypto without selling them, hoping for future profits.