Beware Octoin coin

in indonesia •  7 years ago 

Octoin logo.PNG

I was poking around YouTube today and found a very slick, professionally produced promotional video for Octoin. (It's at the end of this post.)

Looks great, but it provides absolutely no details about how Octoin makes its users money. It only states the same generalities as all of Octoin's other materials.

I also noticed there have been Octoin conferences in Indonesia this month, as well as press coverage in the Indonesia media.

As I have said before, do not invest in Octoin. Especially, do not invest most of your money in it, expecting to become rich.

Octoin is a scam. Like Bitconnect, OneCoin and Davorcoin, it promises great returns at the beginning, but in the end, it will collapse and you will lose your money.

This is not just my opinion. A website that reviews MLM (multilevel marketing) and similar platforms says it is nothing more than a Ponzi scheme.

A Ponzi scheme (named after a man named Ponzi) cheats its investors in the end. Only the founders and the earliest investors become rich. Everyone below them ultimately loses most of their money.

A Ponzi scheme uses money invested by new investors to pay dividends to the founders and old investors, but tells everyone the returns come from some amazingly effective investment system. This scam works only up to a point. When it can no longer recruit new investors, no new money comes in to pay the previous investors, and the project falls apart.

A related scam is the pyramid scheme, which combines the Ponzi scheme with an MLM-style referral/recruitment pyramid. Investor A recruits investors B, C and D, earning a percentage of their investments, and those three recruit investors E, F, G, H, I, J , K, L and M, earning percentages for B, C, D and even more for A. If A is very effective recruiter, and the people in his downline are also very good recruiters, they can make a lot of money before the scam falls apart.

Like a Ponzi, a pyramid scheme uses new money to pay returns to earlier investors (and the founders). A pyramid scheme usually has no real products to sell, like books or videos or cosmetics. It only sells memberships in the investment scheme.

Octoin's only product is its coin, which is traded mostly on Octoin's own exchange. The same was true of Bitconnect and its coin, and Davor and its coin. When those two schemes collapsed, the value of their products -- the coins -- went nearly to zero.

In other words, the Octoin Coin could become worthless, and the money you put into it would be lost forever.

Stay away from it! Advise your friends to avoid it, too.

Here's their new video. Obviously, I am not sharing it to encourage you to invest. Unlike other Steemians writing about Octoin, I am not including a referral link, or even a link to Octoin's website. The video is only here for reference.

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