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DANNYDE HEK LACK OF TRANSPARENCY:
ARED FLAG
A defining feature of the prevalent digital currency systems is the large set of full records each system maintains of the system’s transactions, often referred to as the blockchain. While the design of these systems typically makes these records broadly accessible, the records are largely anonymous, providing only basic details about each transaction and its counterparties.
These limitations have been important for making digital currency systems widely scrutinizable and transparent while also attractive to users who wish to preserve their privacy. Yet, the limited set of details recorded about each transaction appears to complicate the use of these records for a wide range of activities, such as properly policing the systems against abusive financial practices or scrutinizing projects proposing new uses for the underlying technologies, including rule changes and preventive actions to be taken during
THEREARE LOTS OF RED FLAGS ASSOCIATED WITH CRYPTOCURRENCY.
GUARANTEED OVERSIZED RETURN
This is a very common red flag related to cryptocurrency.
Danny De Hek who is popular on the internet or your YouTube channel known as a crypto ponzi scheme avenger.
If you also have this kind of guarantee, then save yourself from the biggest scam.
ANALYZING DANNY DE HEK’S
LACK OF TRANSPARENCYIN THE CRYPTO PONZI SCHEME
The crypto Ponzi scheme created the “selfproclaimed ‘innocent’ investigations” community and one of the first ‘investigative journalists’, Danny De Hek. De Hek has only a small number of investors, has high withdrawal limits, and only makes small, irregular withdrawals. Based on this evidence, De Hek suggests that the project is not a Ponzi scheme. However, the investors’ report has currently earned 30-60% daily earnings and over a 6% per day average daily return for the entire lifetime of the project.
These high returns cannot be explained transparently. This is the first recorded Ponzi project where the creator has actively sought to assert no responsibility for the project. It is known that the creator is slowly withdrawing large amounts of money from the system. This paper’s remit is not to
INTRODUCTION TO CRYPTO PONZI SCHEMES
Ponzi schemes, also called pyramid schemes, produce no product or service of real value. They grow by taking money from new investors and using it to pay whatever profits or returns they have promised to earlier-stage investors. At some point, the number of recruits needed to keep the scheme going outstrips the available supply of new investors, and the scheme inevitably crashes. Since Ponzi schemes offer potentially high returns in a short period, many believe they should be easy to spot.
However, operating in the context of a highly speculative and volatile market, hackers, scammers, and fraudsters have managed to bring back this type of scheme to most global cryptocurrency markets. Schemers usually promise high profits for little risk, thus taking advantage of the fact that newcomer
WRAPPING UP:
As interest in digital or cryptoassetscontinuesto expand.Thisalsoleadsto increased fraud in this field. There are lots of fake promises made by theinvestors.
There are very bad experiences of many people with Danny De Hek. But use your brain and before investing money you should have all the