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Crypto Scam Suspected – New Website Could Be Fraud Since It Daily Pays Out 4X More Than BitConnect

  • Yuri Molchan
    📰 News

    The crypto community suspects a new crypto website to be a scam since it offers huge daily returns on investments. The suspected scam project uses a trading bot which claimed to be powered by an AI-algorithm


Crypto Scam Suspected – New Website Could Be Fraud Since It Daily Pays Out 4X More Than BitConnect
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A short while back, a Redditor published a post sharing an article about a website that shows all signs of a crypto scam.

Reddit

Too good to be true

The Doubly website has been reported on Reddit as a possible crypto scam. It claims to be using an artificial intelligence algorithm in the form of a bot. This bot accepts crypto assets from investors and in some fantastic manner managed to produce huge returns on those investments – 4 times bigger on a daily basis than Bitconnect offered to its clients.


The Redditor even posted an article which describes this website thoroughly. The author of the text claims that this Doubly website is a classic scam scheme, since it to cover its actual fraudulent activities it uses things that typical legal businesses also conduct. All legal businesses, after all, offer to invest your money for you and bring you a high and stable income.

Apparently, so far the assumed scam firm has been making regular payouts. However, Bitconnect worked in the same way until it crashed with all investors’ money.

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A profitable Ponzi scheme

The website offers the following returns. If an investor puts in $12,000 he will get $657 on a daily basis during a period of 57 days. Overall, the company promises to pay $24,000 within just two months.

This is the scheme that all other scams use – attracting new investors and paying the previous ones from the money they get from newly arrived ‘victims’. As a rule, scam investment companies also offer huge returns to those who give their money into asset management.

The trading bot of Doubly offers 400 percent. This seems to be a typical financial pyramid.

Presently, the article reports, the website is showing payouts that have been made already and are being conducted. But that does not mean anything, since scams also pay for a while – in the way described above. Then – suddenly for the deceived investors – these ‘highly profitable companies’ simply disappear.

Site that helps to identify scams

Earlier, U.Today reported that several Reddit users had launched the Crypto Canary website which allows users to leave comments regarding their impressions of working with crypto projects.

The Crypto Canary creator claims that the site helps to identify crypto scams.

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Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader


Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader
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It’s been over two weeks since Bitcoin’s astronomical surge on Apr. 2, but new theories about what might have caused this bullish uptick continue to pop up. According to crypto-oriented analytical firm CoinMetrics, that epic surge was causes by a single trader.

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Mammoth-size trades

CoinMetrics claims that ‘a single committed trader’ concocted a plan to push the BTC price, and he successfully managed to do that by picking the time of the day when the global liquidity is at its lowest level.


(Source: CoinMetrics.io)

(Source: CoinMetrics.io)  

The report also suggests that the trader started to execute his plan on HitBTC (500,000 USDT were traded for Bitcoin prior to the price movement). After that, large trades were observed on Coinbase and Bitfinex.      

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Focusing on the future

Meanwhile, as reported by U.Today, another theory states that the rapid price surge was triggered by the expiration of the CME futures contracts and heavy spot and over-the-counter buying. One expert went as far as claiming that a simple April joke about the Securities Exchange Commission (SEC) could do the trick.

While no one is quite sure about what could have triggered the short-living rally, there is even a bigger disconnect when it comes to Bitcoin price predictions. While some share their bullish predictions for 2019, another report states that it could take 22 years for Bitcoin in order to match its current ATH of $20,000.

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