TL;DR

Crypto.com has allegedly scammed users multiple times, using tactics like misusing funds, manipulating rewards, and minting billions for themselves. It’s a modern-day financial illusion, where the magic trick is making your money disappear.

Story

It’s a tale as old as time, or at least as old as the internet: a shiny new promise of riches, followed by a rug pull. Crypto.com, it seems, has made this their business model. The image shared shows a pattern of alleged scams, and the additional context paints a grim picture.

First, they allegedly misused ICO funds, essentially taking investors’ money and running. Imagine investing in a bakery, only to have the baker take your money, rename the bakery, and give you a few stale crumbs. ‣ ICO: Initial Coin Offering, a way to raise funds for crypto projects.

Next, Crypto.com became the primary seller of their own coin (CRO) to those seeking credit cards with enticing rewards. Once they’d hooked enough users, they gutted those rewards. This is like a store offering a massive discount to get you in the door, then jacking up the prices once you’re a loyal customer. The result? Users left with worthless rewards and devalued CRO. ‣ CRO: Crypto.com’s native cryptocurrency.

Their latest move? Burning 70 billion CRO, supposedly to decrease supply and increase value, only to remint the same amount and award it to themselves. It’s like burning 70% of your cash to make the remaining 30% more valuable, then printing another 70% for yourself. This blatant self-dealing raises serious questions about their integrity.

These actions mirror past financial crises. Remember the 2008 housing bubble built on bad loans? Or Enron’s accounting tricks? History repeats itself, dressed in new, digital clothes. Crypto.com’s actions echo the manipulative tactics that have always plagued the financial world.

The shady practices extend beyond these major incidents. Exorbitant spreads on trades essentially skim 15% off user funds. ‣ Spread: The difference between the buy and sell price of an asset. And the fake giveaways? Classic bait-and-switch tactics. It’s like a carnival game rigged to make you lose, except the prize isn’t a stuffed animal – it’s your financial security.

Advice

If something sounds too good to be true, it probably is. In crypto, especially, due diligence is key. Research projects thoroughly, be wary of promises of guaranteed returns, and never invest more than you can afford to lose.

Source

https://www.reddit.com/r/CryptoCurrency/comments/1jfsyb6/its_become_somewhat_of_a_pattern/