“CryptoUnit – Scam”, They Said
Investors are familiar with the concept of a scam. This word has many meanings, but if we talk about scams of the project kind, it implies banal fraud.
A scam is a situation when an investment instrument for some reason stopped performing its duties to an investor. In the field of digital currencies, this word is often used when discussing unreliable startups and the initial placement of coins, that is, ICOs, in a nefarious manner involving the swindling of the investors and other project participants without the possibility of regaining lost funds.
More and more dubious projects are emerging on a daily basis with the aim of tricking investors and quickly sacking up their money before vanishing without a trace. The fraudsters use a fairly simple scheme that has been time-tried and tested, as they come up with a token and the corresponding token sale that is hyped and advertised widely in a large variety of media channels, sometimes even with the attraction of celebrities. Then the scammers attract many investors who are promised big money fast and in a safe environment.
When the fraudsters receive a large amount of money from the investors, they shut down the project and vanish. Such tricks most often work on young and inexperienced investors, who still believe in the regulated and honest nature of the investment market.
The reasons for scams are many, but they all boil down to banal human greed, which forces people with like-minded goals to band together and come up with a bogus idea that is then used to take possession of other people’s money in an unlawful way. There are many names for a scam project, as it can even be called an ordinary financial pyramid, since it exists thanks to the money of the investors. If there are none, then the project is closed, that is, it turns into a scam.
The market is rife with opportunities for scams, as criminals are increasingly creating fake projects to get money in a fraudulent manner even from professional investors. The approaches of the fraudsters are painfully similar in their manner of introduction, as they promise mountains of gold to the investors who invest heavily in the fake projects. Soon after, such projects are closed, and the scammers withdraw all the money from their accounts only to vanish in the sunset.
The fraudsters very often manipulate inexperienced investors. With the promise of gaining huge profits, the investors give in to the excitement and start to invest large sums of money in the project. At some point, the startup is closed, and the investors are left without money.
If the project ceases to provide the necessary technical support, ignore questions, then this is a sign of a scam. Investors should also be wary of excessively active advertising that promises mountains of gold and unrealistic levels of profits.
The impact left by unscrupulous projects on the investment market cannot be underestimated, as the projects that end up as scams eventually harm the existing players of the market and the newcomers. It is not unreasonable for the investors to start digging deeper into the emerging project structures in search of scams. As such, honest projects suffer from doubts and are often branded as scams at first glance without in-depth analysis of their product offering.
The same fate of being branded a scam could have befallen the CryptoUnit project, had it not been for a number of factors that set it apart as an honest undertaking with a noble idea that can be of benefit to participants. The “CryptoUnit scam” search query is the first one that would-be investors enter upon learning of the project. However, “CryptoUnit scam” is not a viable statement about the CryptoUnit project, as the undertaking is based not on the profiteering, but on the educational model of development.
The first reason why “CryptoUnit scam” is unreasonable as a statement is because the project is based on a regulated and internationally recognized model of development. In the near future, CryptoUnit plans to issue tokens backed by real assets and to pass all the requirements of the regulator for the possibility of implementation.
Secondly, the “CryptoUnit scam” theory fails, because the CryptoUnit project is educational by nature and is designed to offer its participants the chance to attend courses on financial literary that are given by successful entrepreneurs and businessmen from various industries.
Not every project is a scam, and CryptoUnit is a fraud-free undertaking that is built on a previously established and highly successful project with an established community of thousands of followers.