Why buy a burst generating asset at all?
captinkid last edited by
It seems to me a lot of burst generating assets are either explicit or implicit scams.
There are scammers of intent, where they start the asset or business with the goal of taking your money without giving returns.
There are scammers of opportunity, where they wake up one day and realize they don't want to make you money anymore and disappear. These might have been good people, but they'd rather not give you back your money if they don't have to. Another is where they pay you back your starting money and keep the "profits" for themselves. You took all the risk and they took all the reward.
What is even more shocking is people are giving money to these without even the barest hint of legitimacy traditional scammers used. At least they had the decency to file an LLC, and have an address and phone number to reach them.
Most assets on the exchange have zero contact information, what happens when they run with your cash? How do you even complain when you don't even know the name or country of residence for the person?
Even if you trust the operator knowing their full address, phone number, and corporation name, you're still risking them getting bored one day and pulling out of your loose legal "agreement"
I'd suggest doing at least the bare minimum of checking out any asset if you're giving them any money at all. Get real business information, how they handle their tax reporting, and make sure you trust them to not wake up one day and decide you're money is theirs now.
A few questions to ask before investing in anything:
- Business address and contact information
- Tax liability reporting and how it is payed for
(If they are buying 100k in hardware and not paying taxes, it's more than a little red flag)
- What legal jurisdiction is their business operating in
So you didn't do your homework and got scammed! What can you do?
Report them to their countries tax service (You won't get money but they might get caught)
Report them to criminal fraud legal authorities. (You might get something eventually, but more likely nothing at all, and they might get prosecuted)
Sue them yourself, or with others that were scammed. (You probably won't get anything, but it'll make you feel better)
Good luck and safe investing!