Over the past few years, Pakistan has seen a rise in cryptocurrency scams that have left many investors out of pocket. Three of the most notorious scams are Forsage, IDA, and JawaEye. These scams lure unsuspecting investors with promises of high returns on their investments, but in reality, they are not real. However, they are just elaborate Ponzi schemes.
Forsage is a multi-level marketing scheme that claims to be a decentralized platform for crowdfunding using Ethereum blockchain technology. It was first launched in 2020 and has gained a significant following in Pakistan. However, the reality is that Forsage is nothing more than a pyramid scheme that relies on recruiting new members to pay off old members. The only way to make money with Forsage is to recruit new members. Which is a sign of a Ponzi scheme. Several countries, including the United States and South Africa, banned the company from operating without a license because it defrauded investors.
IDA is another Ponzi scheme that has gained popularity in Pakistan. They market it as an investment platform that uses artificial intelligence to trade cryptocurrencies. The company promises returns of up to 15% per month on investments. However, like Forsage, IDA relies on recruiting new members to pay off old ones. Accusers have accused the company of not paying out investors. It has caused many people to lose their life savings.
JawaEye is another scam that has been making headlines in Pakistan. It is marketed as an investment opportunity in a new cryptocurrency called Jawacoin. The company promises high returns on investments, but like the other scams, it is a fraud. It relies on recruiting new members to pay off old members.
JawaEye has attracted allegations of not paying out investors and resorting to the use of fake reviews to lure in new members.
These scams have left many investors in Pakistan out of pocket. The country’s Securities and Exchange Commission (SECP) has issued several warnings about these scams and advised investors to be cautious when investing in cryptocurrencies. The SECP has also set up a fintech sandbox to encourage the development of innovative financial technologies while ensuring investor protection.
In conclusion, Forsage, IDA, and JawaEye are just some cryptocurrency scams that have emerged in Pakistan in recent years. These scams rely on recruiting new members to pay off old members and promise high returns on investments that are often too good to be true. Investors should be cautious when investing in cryptocurrencies and do their due diligence before investing in any platform or scheme. The SECP’s warnings and fintech sandbox are positive steps towards protecting investors and encouraging the development of innovative financial technologies in Pakistan.