Kenyans are counting millions of loses after falling prey to a crypto mining pyramid scheme BTCM.
According to one Kenyan who lost money, the company allows users to rent mining machines from as low as Ksh 6000 all the way to Ksh 100000 and users were told they will make double the amount in less than seven days.
Another incentive used is that users would get Ksh 500 for every referral they make but the trick is that the money was deposited at their wallet.
things took a turn earlier in the week when the app they were using to trade suddenly went offline and the leaders in the group stopped replying to their queries.
Pyramid schemes are not new in Kenya and people keep falling for them every year because of greed. Kenyans love easy money and that is why they keep falling for them each year.
so what is a pyramid scheme? These are deceptive schemes that offer investors large returns/profits. However, this is contingent on the recruit's capacity to enroll new people in the plan.
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The following level of recruiters is likewise intended to recruit more investors, creating a recruitment chain. However, the earnings from these schemes are predicated on the money that recruiters 'invest' in, which is then utilized to compensate previous investors.
Some schemes may claim to sell a product, but this is usually a front to recruit people and conceal the pyramid nature of the scheme. The scam organizers may appear to pay investors on time at first, but they soon cease and leave, leaving investors out of pocket.
some of the most common pyramid schemes include:
DECI Kenya was created by George Odinda Donde. The pyramid scam imploded in 2006, sinking with over Ksh 2.4 billion invested by over 93,000 investors.
Crowd1 was launched in 2019 by Swedish entrepreneur Jonas Eric Wener, who defined it as the "next generation of online networking."
