Pyramids in the world of cryptocurrency are still often encountered. They disguise themselves as tech projects and collect money, promising quick returns. Usually, a crypto pyramid outwardly looks like an investment platform. But in reality, the project has neither a product nor goals. Money comes from new participants, not from real activities.
Such schemes become especially active during the growth of interest in digital assets. People look for opportunities to earn and often do not have time to check who they are trusting with their funds. This provides ground for deception, including fraudulent schemes with flashy advertising and loud statements. To avoid falling into such a trap, it is important to understand how it is structured. The task of the pyramid is to convince that the project is working while new funds are being collected.
Which projects pyramids most often disguise themselves as
Fraudulent schemes increasingly use popular directions - DeFi, GameFi, NFT, and Web3. The creators of such projects promise high returns, offer participation in “farming” or “staking,” and show supposed audits. But all this is an illusion.
Outwardly, the platform may have a stylish website, activity on social networks, a token, and even reviews. However, upon inspection, it is found that the project has no legal registration, the team is hidden, and the income model is unclear. This is a typical crypto pyramid, which operates as long as new investments come in. As soon as the flow of money decreases, the platform disappears along with the collected funds.
Such schemes often use the technique of “social proof” - creating an illusion of activity, trust, and success. Fake reviews, fake accounts on Telegram, and even news on crypto sites help convince that the project is real. In reality, everything is built on imitation.
What to pay attention to in order not to fall into a pyramid
The signs by which an investment scam can be recognized often repeat. Even if everything is done beautifully, careful analysis can reveal weak points. Such projects often lack a license and company information. Income is promised under any conditions, even when the market is falling. Funds are difficult to withdraw or cannot be withdrawn at all. Everything is built on inviting new people, not on real deals.
The team may be fictional, and social media activity - artificial. The project has no transparent work model, but lots of advertising and promises of “risk-free income.” Each such sign itself is a reason to be wary. If there are several, you should definitely conduct a project check. This will help avoid participating in a fraudulent scheme.
Everything should be checked - the website, documents, team activity, legal address. If something does not add up, it is likely not a real crypto project, but a disguised crypto pyramid. Special attention should be paid to the inability to contact real project representatives. Lack of clear support, identical responses in chats, and frozen funds are typical scam signals.
What can happen after participating in a pyramid
The main danger is the loss of all investments. The money invested in a crypto pyramid cannot be returned. But that's not all. Sometimes victims become part of the scheme - they start inviting others to recoup their funds. This starts a chain of deception. Such actions can lead to legal consequences, even if a person did not know they were participating in a fraudulent scheme.
It happens that along with money, the project requests personal data. Such data can be used later in other schemes or to access wallets. In addition to financial losses, there is a risk of identity compromise if passport data, address, or account information was entered. This gives scammers the opportunity to continue deception in other forms, including phishing or account hacking. It is necessary to see how the platform is structured, whether it has licenses, and how funds are stored. If nothing is clear or the answers are vague, it is better not to participate.
How to reduce risks and not fall into a trap
The crypto market is growing, and with it new projects are emerging. But among them, there are many fake ones. To avoid losing money, it is important to approach the choice of platform responsibly. A crypto pyramid will always look tempting. But its goal is to quickly collect money, not to bring income. Before investing, it is worth conducting your own project check. This helps to understand how transparent it is and whether it exists at all. Here is what to pay attention to:
- technical documentation (white paper);
- checking the team and their previous projects;
- activity on GitHub, forums, social networks;
- presence of a license and country of registration;
- smart contract structure;
These steps allow determining in advance whether the project is safe or just another fraudulent scheme. A reliable platform will not hide and avoid specifics. Only a conscious project check helps to avoid deception and save funds.