Some people have made a lot of money in the tech world. Some have done it by creating companies, others by investing in them. But there are others who wish that they had invested in successful companies early on and made a lot of money but didn’t and now feel that they missed out. These people who are on the lookout for the next big thing so that they can get is early and cash in too. Such people are easy prey for con artists who know that the sales pitch of ‘buy now before it is too late’ can drive people to rash decisions and invest in something they may know little about for fear of missing out again.
We have seen this scenario play out so many times before and blog reader Jason Wessel sent me a link to this extraordinary story about someone who managed to scam people out of millions of dollars by promising them great rewards with a new cryptocurrency called OneCoin that she claimed would put Bitcoin out of business. The scam was based on the multi-level marketing scheme used by companies like Amway whereby people are recruited to sell both a product and also recruit new people to sell the product. Part of the sales proceeds of the new recruits goes to the person who recruited them, all the way up the chain. This is a version of a pyramid scheme and, like all such schemes, the few people who get in early make the most money while those lower down the chain can lose whatever they invest.