Emerging technologies have always been involved in scams, and now new schemes are falling victim to the misuse of the bitcoin name and Ethereum and Theron smart contracts. The Double Way scam project, abusing the name Ethereum Smart Contract and several other small projects using the name of Theron Smart Contract, have become popular among Iranian users these days and empty the pockets of ignorant people. In the rest of this article, stay tuned to Digital Currency to prove that these types of projects are scams.
Smart contract tools for scams
Simply put, a smart contract is a programming code that is implemented on a blockchain to execute specific commands given by the programmer in the event of a series of conditions occurring.
His main double technique to attract more victims is to use the term “smart contract” to try to differentiate himself from other scam projects.
The fact that smart contracts are a great innovation does not mean that they should not be used for fraudulent purposes. Tools do not matter if a plan is a scam. Whether using a face-to-face company, a site, or a smart contract, a fraudulent scheme is inherently fraudulent and only manifests itself in various forms.
In cyberspace to persuade people to participate in the Doubleway project, it is argued that sites like Digital Currency have written articles about smart contracts, so this project is not a scam.
This argument is like publishing an article in a magazine about the Internet and the possibility of building a site on it, and then someone claiming by building a scam site because it was written about building an article site, so my site is not a scam.
Also, anyone can make a smart contract for a very low cost (sometimes less than $ 100), but it can not be said that this smart contract is healthy and has real application. For example, you can build a website for less than 200 thousand tomans. The nature of your site is the same as the nature of the Amazon site, and both carry the title of website. But is the value of your website equal to the value of Amazon’s multibillion-dollar website?
By going to Atrascan website You can easily see that more than 1 million Ethereum smart contracts are currently registered and creating a smart contract is not a difficult task.
Therefore, the smart contract for fraudsters is just a tool to use the ignorance of the people about this innovation, to be able to attract more people to the system.
How do Doubleway and similar projects work?
Double V is literally a Panzi scheme. To find out more about this scam, you can read the article “What is a Panzi Scheme?” See; But in a nutshell, the Panzi scheme is a fraudulent system in which old investors ‘money is paid with new investors’ money and no economic activity takes place in it; That’s exactly what Double does.
Simply put, the system tells you to deposit 0.08 ether and then introduce two people to the system to get a 0.16 ether commission. Then those two people enter the other two people into the system, and also by upgrading the level, which itself requires payment, you will reach millions in profits.
In fact, the system itself shouts, which is a Panzi scheme. This means that the survival of the system and the continuation of your profitability depend on the arrival of new people, without any economic activity or value creation.
There is also a 64-day cycle defined in the system, which means that for each level you have up to 64 days to continue and reach level 8 and enroll 510 people, otherwise you will have to pay again for your current levels. Extend.
In fact, from a macro perspective, you have to take the money out of someone else’s pocket and put it in your own pocket to make a profit, according to the advertisers, and this is a clear example of fraud.
In Panzi schemes, very few people make a profit, but most of the participants end up leaving the system at a loss, and the fate of the system itself will be nothing but collapse.
The type of people invited to the system is also interesting in its kind, and sometimes it is done in the cover of employment and income advertisements at home.
This kind of advertising and the promise of astronomical and guaranteed profits is something that we only see in fraudulent projects.
Doubleway and similar projects are completely scams and use the name of smart contract as a tool to advance a pan-plan, attract people and differentiate themselves from other scam projects. Using a smart contract can not change the nature of a scam.
Activism and participation in these projects will only cause the ignorant people to lose the money they have worked for in an unreal dream. Those who promote these plans, even if they do not know it themselves, cause great harm to many people.