CRYPTO; A BEGINNER’S GUIDE TO DEFI YIELD FARMING
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Proof of Solvency combines two proofs—Proof of Reserves and Proof of Liabilities—to ensure assets exceed debts.
The fast-paced ecosystem of finance and technology is witnessing a paradigm shift in investments with the tokenization of real world assets.
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“In 2022 alone, new Ponzi schemes were uncovered once every six days; in total 57 schemes was discovered in the same year, mobbing up about $5.3Bn of investors’ funds. 25% of the uncovered scheme involved cryptocurrency and it surprisingly mobbed up about $3Bn of the $5.3Bn even though it is just 25% of the total scheme uncovered!”
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little to no risk. But in actual sense, the money is not invested!
Both are fraud schemes while ponzi only involves your money without active involvement, pyramid scheme involves you paying someone in the system and actively recruiting new persons to pay you to grow down the ladder. This is where it gets interesting
Either ponzi or pyramid scheme, they need promoters or marketers to publicize their scheme in order to get new participants. Nigeria has been one of the lawless countries in this scheme regards until now. The Nigeria National Assembly (NASS) passes the investment and security bill which will strengthen the capital market and protect investors
The bill includes provisions for greater punishments for those responsible for running Ponzi schemes and illegal investment schemes, which have cost billions of naira and damaged Nigeria’s investment climate.
sirflex
While the bill is waiting for presidential approval, the senate president Ahmad Lawan, stated that the bill is supposed to protect investors, regulate the market well, lower systemic risks, and make it harder for people who run Ponzi schemes to get away with it.
Now, Promoters of Ponzi schemes will now have to go to jail for at least 10 years. The bill also says that their assets will be taken away and they will have to pay a fine of 10–20% of the money they got from victims.
Nigeria Tribune
Ponzi scheme, pyramid scheme or illegal investment is not a new way bad actors take money from innocent investors, but new concept for them arise everyday; cryptocurrency is at the top of it, while innovation in the space are making it easier for crypto to become more friendly, the larger population are still naive about it.
Always look out for schemes that promise high returns without saying the risk associated with it. High returns in the financial market always mean high risk of capital or investor’s money. Avoid schemes with pyramid structure. And always be active to learn and grow about a concept before you put your money to it.
This will reduce scam in Nigeria drastically
Make I post link to d group wey I dey, make the admin head correct say 10yrs dey enter him eye if anything do my funds
Whether or not, Nigerians would always navigate their way around illicit behaviour