In General, Be Skeptical of Crypto Lending Sites

If a website promises you big returns if you lend Bitcoin or another cryptocurrency, be very skeptical. Many of these end up being scams.

More than one site with a Multi-Level Market structure has promised too-good-to-be-true returns to people. In almost all cases they:

1. Ask you to lend coins via a platform.
2. Lock up your coins for a set period (you can’t just get your coins back out).
3. Pay you in tokens that aren’t Bitcoin.
4. Claim to use volatility software.
5. Promise you absurd returns like 1% a day.
6. Often promise to “double your Bitcoin.”
7. Offer incentives to get others to sign up.
8. Have a cult-like vibe and a message that is often focused on telling you that it isn’t a scam or a pyramid scheme and that other people who say it is are just jealous or trying to stop you from business opportunities (something like that).
9. Have pushy followers who appear on social media and video sites pushing the product like virtual drug dealers.

Every one of the platforms that fit the above criteria that I can think of has ended up being a scam of some sort (generally they issue tokens and then disappear, but sometimes they just disappear).

The result is that they rope people in for a while, and then they eventually end up running off with everyone’s money.

There is no way to know if the next one will be a real legit business opportunity. Further, I don’t want to point fingers at companies with loose ethics who are sitting on a boatload of capital (seems dangerous).

If a website promises you big returns if you lend Bitcoin or another cryptocurrency, be very skeptical. Many of these end up being scams.

More than one site with a Multi-Level Market structure has promised too-good-to-be-true returns to people. In almost all cases they:

1. Ask you to lend coins via a platform.
2. Lock up your coins for a set period of time (you can’t just get your coins back out).
3. Pay you in tokens that aren’t Bitcoin.
4. Claim to use volatility software.
5. Promise you absurd returns like 1% a day.
6. Often promise to “double your Bitcoin.”
7. Offer incentives to get others to sign up.
8. Have a cult like vibe and a message that is often focused on telling you that it isn’t a scam or a pyramid scheme and that other people who say it is are just jealous or trying to stop you from business opportunities (something like that).
9. Have really pushy followers who appear on social media and video sites pushing the product like virtual drug dealers.

Every one of the platforms that fits the above criteria that I can think of has ended up being a scam of some sort (generally they issue tokens and then disappear, but sometimes they just disappear).

The end result is that they rope people in for a while, and then they eventually end up running off with everyone’s money.

There is no way to know if the next one will be a real legit business opportunity. Further, I don’t want to point fingers at companies with loose ethics who are sitting on a boatload of capital (seems dangerous).

I want to offer a simple bit of advice, “if you are going to sign up for a platform that wants you to lend your crypto, if they will have a lock up period, if they want you to get others to sign up, and if they are promising great returns (especially with their ‘volatility software’), then I would suggest you don’t sign up, warn your friends, RUN, etc.

At this point in cryptocurrency history we can safely say that “really, really, this is very likely to be the same scam these types keep running over and over again; at this point we really can be pretty sure it is a scam, so proceed with extreme caution.”