Investment Red Flags: Signs of a Scam Project
This is not easy to chose a right investment because what I know around 50% of investment projects are scam and they are brought online to take people money. In this post I will discuss about how to know investment projects are scam and what are their signs.
The first thing about the scam project is that they lack transparency. What does this word means? Transparency is something where their scope and future is not defined. Or they donot provide detail and clear information about their investment projects.
Taking the example of #hive . In this project every thing is clear and in detail information. Where there left no doubt about the investors regarding this project. If the same is in other investment projects then consider it legit else the project is scam.
Another sign of scam project is that they offer unrealistic returns. What I mean with this word, that they offer you huge returns on your small amounts. Just like 3 Alliance which was the scam project who offer investors 33% on monthly basis.
This is impossible that any project can give you that huge amount of money every month. Because its impossible for them to earn that amount of money themselves. Therefore, if the projects offers you huge return which is not expected then consider it a scam project.
Unrealistic Returns and Other Warning Signs
They also pressurize you to invest as soon as you can. They offer you huge returns but with condition that invest as soon as you can because the offer is for limited time. And when you invest you cant withdraw instantly. They give you time and time unless they do scam and ran away.
These projects are mostly unregulated and unregistered from the government. Before investing with any project Check whether the investment project and its organizers are registered with relevant authorities if not they are often red flags.
Scam projects have no clear business ideas and they dont mention how they earn money and what are their business markets. They offer false reasons of generating money which does not make sense. So, be cautious from this kind of investment projects.
They have fake reviews which have their own circle people. What they do a group of people give positive review under their project so that to attract investors attention. How to check the reviews are fake? You can check if usernames are co-related and their comments one after another.
Recruitment system is their another technique. They offer you to bring more people and earn extra rewards. If the focus is on recruitment rather than a genuine investment opportunity, it may be a ponzy scheme and scam project.
What do you people think about scam projects and what their ways to scam people? Will you people agree with my thinking and words? Will be glad to see your answers in the comment below.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
NOTE: IMAGE EDITED IN CANVA.
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