A pyramid collapsed after promising returns on the image of the Tether cryptocurrency, a dollar-backed stablecoin.
The investment market in cryptocurrencies made possible a new reality for many investors, who mainly saw Bitcoin as a disruptive new technology in world finance.
Over the years, however, many people came to see that it was necessary to have a more stable digital currency, as the price of Bitcoin has great volatility in the market.
Thus was born the term and technology of stablecoins, which are cryptocurrencies backed by some asset, such as the Dollar, Real and even Gold. The main one on the market is Tether, issued by the company iFinex, which also controls the broker Bitfinex.
Tether Pyramid Collapses After Raising Funds From Investors
With Bitcoin’s fame, many financial pyramids used the image of the biggest digital currency to raise funds from inattentive investors. Usually these businesses promise high profitability in the market, even combining multi-level marketing tactics.
In fiat currencies, pyramid schemes have been realities for many years, and in Brazil, for example, scams such as Telexfree, Boi Gordo and Ostrich Master, among the most famous, have already emerged.
But scammers may now be looking to stablecoins to create scams, as they fluctuate little in the market and offer their creators the opportunity to secure a more steady return.
One of them turned out to be AntUSDT, a pyramid of Tether that appeared in the investment market with miraculous offers of returns, but which came to an end last October 25th.
Social networks and scam sites were excluded from social networks and investors do not know the whereabouts of the creators of the company that only existed on the internet.
To justify the 121% monthly profits, the scam claimed that it used clients’ USDT for coin-mixing services, offering very high profits and with “low risks”. Claiming that investors could cash out at any time, the yield promise still said it was possible to get 0.35% every 12 hours.
Coup promoters claimed that the project was a partner of Binance Smart Chain, but it was just a lie to convince investors
In explanations about Tether technology in social networks, it was common for AntUSDT to use the image of famous companies in the market to convince investors that the business was legitimate. In one of the images taken by Livecoins, it is possible to see that Tether’s pyramid claimed to be a partner of Binance Smart Chain.
In other tactics to convince investors, the company claimed to have deals with Nasdaq, the US stock exchange, with fake images shared on its old social networks, which have now been deleted from the main platforms.
This scam reminds the market that scams will come on several fronts, and investors looking to learn about the cryptocurrency market should avoid getting-rich-quick proposals and guaranteed returns.
In 2021, the stablecoin market caught the attention of authorities around the world, who promised to regulate this sector after Facebook threatened to create a digital currency with this technology.