by Chris Black
You create 10,000 widgets of no real value, that cost you $.50 each.
You get ten friends to buy the widgets for $1 each, doubling your money.
You say to get ten friends to buy the widgets from each of them for $2.
They instantly double their money.
All of a sudden other people hear that those guys doubled their money selling these widgets, and they want in.
You sell direct to them for $10 per widget, bypassing the first level of sellers.
They are pissed at first, but you tell them they are members and will get a dividend.
You give them a commission of $1 per widget sold.
They get $1 and don’t have to do anything.
That level still makes $1, but you are now making $9.50 per unit instead of $.50.
Rinse and repeat with new levels.
Eventually some dude gets stuck with a garage full of worthless junk because his wife thought she’d get rich.
The creator of the scam is living in Miami Beach driving a Lambo.
The best part about crypto is that there isn’t any physical product to worry about and the scam is limitless.