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Help me understand why a project is a Ponzi scheme

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by COINS NEWS 109 Views

Hello everyone,

So, first of all I want to pinpoint the fact the I spent my last two years learning as much as possible about the crypto markets, or just markets in general and I am trying my best to avoid the general newbie pitfalls that comes within this industry. Today, I met the first real life scenario where I need my reasoning to avoid being scammed in the future.

My girlfriend got an offer from a "friend of a friend" about joining a project called PLC Ultima or PLC Ultima X or whatever. She was told all kinds of too good to be true information about 600% guaranteed return and return on all kinds of new recruits and whatnot.

She was invited by this friend of a friend to a hotel meeting, where even the "boss" of this guy was there, and they talked to her about this project for about 2 hours.

Since she has no experience related to crypto at all, she struggled to understand the concepts but all she understood was that these people managed to make a lots of money by joining, recruiting and investing in this project and she feels that there is indeed an opportunity in this situation.

Me, on the other hand I am almost 100% sure that this thing is too good to be true and after watching the LUNA,FTX,Celsius collapses in the last year I am highly skeptical about any projects besides the BTC,ETH and a few top20 altcoins.

My questions are:

  1. Do you have any info about this particular project? (PLC Ultima / PLC Ultima X)
  2. What happens if I invest let's say $1000 into this? They offer monthly guaranteed return on the investment. Will I be able to withdraw my funds after the "1 year locking period" expires?
  3. This guy and his boss even told my girlfriend that for the next meeting she should ask me to go with here, which I am planning to do, because I want to see in real life how something like this happens. What are the questions I should ask them in order to trap them into admitting that it's a scam?
  4. Is there any chance I am just too skeptical and if I convince my girlfriend to get out of this situation, she misses on possible good money?

Any info would be much appreciated. Thank you.

Edit: Please ignore my mistake in the title and replace the "Ponzi scheme" with SCAM. Apparently I don't understand the difference between certain types of scams but I don't think it really matters in this situation. Cheers!

submitted by /u/ottottottotto
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