A few months ago, CryptoDouble was one of the most obvious Ponzi schemes in Bitcoin history. Ever since that website shut down, multiple other HYIP and other investment schemes have popped up, all in an effort to defraud unsuspecting customers. CoinDouble is the latest Ponzi to join this growing list, and they use the same theme and style as CryptoDouble did:
CoinDouble – Yet Another Bitcoin Ponzi Scheme
Whenever a new form of payment comes up, it is only a matter of time until people with less than honest intentions check it out. In the world of Bitcoin and other digital currencies, Ponzi and HYIP schemes seem to be the weapon of attack for the time being, as they lure in unsuspecting users with impossible promises.
As the name CoinDouble suggests, the goal of this Ponzi scheme is fairly simple: users deposit a certain amount of Bitcoin, and the site operator will double your money within the next 100 hours. Every hour, a transaction worth 2% of the original investment will be sent to the investor’s Bitcoin address, which means one can break even after fifty hours.
Don’t be mistaken in thinking this website is making any form of money through investments or trading coins on behalf of the investors. A Ponzi scheme such as CoinDouble remains in operation as long as deposits from other users keep coming in. Once this fund starts to dry up, no further payouts will take place although they will still be listed on the website.
Even though the CoinDouble main page will display a lot of new deposits and payouts being made to certain Bitcoin addresses, rest assured a lot of these transactions are fake. There is no way to verify whether or not a certain Bitcoin transaction on the network was sent to or from the Coindouble owner, as there are no transaction messages included.
Looking up any of the transactions listed on the CoinDouble main page will clearly show these are just random transactions pulled from the blockchain. Even addresses who should have received multiple payouts already will show no more than a handful of transactions that vaguely resemble payout amounts coming from CoinDouble.
Another factor indicating how illegitimate this platform is, comes in the form of no information about the site owner or company behind CoinDouble. All of the registrar information is protected by WHOISGUARD, which is usually not a positive sign. After all, if this were a legitimate business, contact information would be accessible to everyone.
Ponzi schemes will not go away anytime soon, and Bitcoin users need to steer clear from sites like CoinDouble at all costs. Investing any money into these programs will lead to a financial loss, even if one were to receive a few payouts in the beginning.
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