Could the ongoing flurry of EOS Ponzi schemes push PlusToken-style cryptocurrency prices down?
According to Chinese crypto news agency ChainNews and The Block, EOS Ecosystem, a well-known EOS wallet, has disappeared with its users’ money and users are reporting that they are unable to log in.
The loss is more than 3 billion yuan (over $ 424 million), according to ChainNews via Google Translate. According to The Block, the total is $ 52 million.
According to the blockchain, the wallet where the stolen funds are to be kept has approximately $ 48 million in EOS at the time of writing. The account is called “huobidevice3”, but no Huobi affiliation is assumed.
EOS Ecosystem was supposedly an interest-bearing wallet where you entrust your EOS tokens to the wallet and pay out the daily winnings. Allegedly it was a direct Ponzi program.
Hidden in sight
Allegedly, the EOS ecosystem was widely known as the purported Ponzi scheme. It has reportedly been sued in a local court in China and is said to be linked to a number of block producers and other EOS organizations. These organizations have refused any association, claiming that EOS Ecosystem is a multiple scam.
The daily returns on the wallet also failed the sniff test.
“The static income is 0.342% to 3.42% per day. The annual reward for the EOS voting is to split the sum of 1% of the newly added EOS tokens so the end result is running away with the money . ” “Says ChainNews through Google Translate.
There isn’t a red flag big enough to express how utterly skeptical this scheme looked, but it reportedly managed to confiscate a fortune.
“This point has been tapped on the board countless times, but there are still people who can’t remember,” complains ChainNews.
One reason the program is so successful is that it managed to stick its clutches into people and pay off the promised returns over a period of months. These people would then independently begin evangelizing the Ponzi program and attracting new users.
“Because the EOS ecosystem’s survival cycle is long, many leeks are slowly starting to be vigilant,” says ChainNews.
“According to fans, they can convince you for a few months for a long time. Three people can become tigers, not to mention the benefit of someone talking about something in your ears for two or three months.”
The group also tried to introduce a vague technical explanation of how these returns were possible.
“In contrast to the simple and gross move of Dogecoin, the MLM team has this time established an EOS ecology for itself that is based on the flow of technology,” says ChainNews.
And above all, it was very communicative and was in constant contact with its users.
These are the three golden rules of a successful Ponzi program.
Your money is your problem
Of course, withdrawing is not that easy.
At the time of writing, the funds are still in the wallet and could stay there for some time.
As ChainNews said:
“To be honest, EOS isn’t a great way to cash out after the round and it’s easy to be tracked. Monitored.”
This means the stolen crypto could sit around like a ticking time bomb while the suspected scammers wait for things to calm down. It then regularly explodes in the markets at various points along the line, lowering EOS prices with a series of dumps.
We saw that with PlusToken. It was a considerably larger Ponzi scheme than this EOS system, but it was also tossed into the much more liquid Bitcoin and Ether markets, among other things.
It’s impossible to say exactly how PlusToken affected Bitcoin prices, but analysts have at least identified an impact that is beyond chance.
Source: chain analysis
“Like … PlusToken was quiet in the wallet,” warns ChainNews. “So far, EOS has nothing to increase and now there is so much money to be disbursed that EOS may not be too strong in the future.”
The problem is compounded by the fact that EOS has historically been a hotbed for leeks, suggests ChainNews.
“The fact is that the EOS ecological community, EOS finance, EOS ecology, EOS planet and other projects have now run away and disappeared into the long river of history,” it says.
“The more money we find, the more problems we see,” summarizes the Notorious BIG.
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Disclosure: The author holds BNB and BTC at the time of writing.
Disclaimer: This information should not be interpreted as confirmation of the cryptocurrency or any particular provider, service or offer. It is not a recommendation to trade. Cryptocurrencies are speculative, complex, and involve significant risks – they are very volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Take into account your own circumstances and seek advice before relying on this information. You should also review the nature of a product or service (including its legal status and relevant regulatory requirements) and consult the websites of the relevant regulatory authorities before making a decision. Finder or the author may be involved in the discussed cryptocurrencies.
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