RWA is ruined, and the Ponzi scheme five-piece suite is online.
This lawyer has been scrolling through video accounts recently, and my eyes are almost blind. N accounts hype 'RWA tokens' every day. When you click in, hey, good heavens, it's not real RWA at all. They just named their own issued air coin 'RWA' and then started frantically riding the concept. Something like 'empowering the real economy,' 'virtual and real integration,' 'the future of blockchain,' one set after another, making people feel lost in the clouds. Even more outrageous is that the style of these video accounts is simply the 'standard configuration' of Ponzi schemes:
Whiteboard: A 'lecturer' dressed like a human being draws on a whiteboard with a marker, calculating returns and drawing structures, making it look like a real thing.
Red banner: The background wall is hung with large characters such as 'Web3 Wealth Summit' and 'RWA Global Ecology Conference,' with white characters on a red background, as festive as celebrating the New Year.
Display board: Walls are full of 'project introductions' and 'global layouts,' all in English and jargon, wishing to cover all four walls.
Currency counter + cash: A currency counter is placed on the spot, with stacks of red banknotes next to it, implying that 'you can earn so much by investing.'
There is also a group of old folks sitting below, their eyes full of 'hopes for getting rich.' You tell me, should I open the door or not! Lawyer Mankun's years of case handling experience tell me that if this is not a Ponzi scheme, I will eat the keyboard!
Here are some on-site pictures from video accounts. Let's get a feel for it:
Source: WeChat video account
Source: WeChat video account
Source: WeChat video account
Source: WeChat video account
(All of the above pictures are from WeChat video accounts. Welcome to identify yourself.)
Cutting leeks in the name of 'Web3 Evangelist'
These account names are all more bombastic than the last, with terms like 'Web3 Evangelist,' 'RWA Evangelist,' and 'Blockchain Wealth Mentor.' They've almost ruined these terms, turning them into derogatory words. They also particularly like to call themselves 'industry pioneers,' boasting of 'ten years of deep cultivation in blockchain,' but when you check, blockchain wasn't even popular ten years ago. What were you deeply cultivating, buddy? P2P lending?
Even more ridiculous is that the homepage of their video account is full of 'leading everyone to embrace Web3' and 'RWA is the future trend' in their introductions. When you click on the videos, they are all brainwashing routines:
First, talk about a bunch of jargon that you can't understand, such as 'pledging,' 'compound interest,' 'smart contracts,' and 'algorithmic supply and demand balance.' Anyway, after listening to it, the old folks only remember one sentence - 'investing can make you rich.'
Then throw out a 'once-in-a-lifetime opportunity,' telling you that 'RWA is the ultimate form of blockchain, and you will regret it for the rest of your life if you miss it.'
Finally, there is a 'limited-time offer,' such as 'invest 10,000 now and get 5,000 tokens' or '30% reward for recruiting others,' with a blatant pyramid scheme flavor.
Brother, where is there such a good thing? Real RWA is a serious financial product, involving asset securitization and regulatory compliance. How could it be your turn to be yelling offline here? These 'evangelists' don't understand RWA at all. Their 'ecosystem' is just a Ponzi scheme, specializing in targeting the retirement money of old folks.
Why target old folks specifically? Because young people are harder to deceive.
Have you noticed that the audience at these Ponzi schemes' offline events is almost entirely old folks? Why? Because they can't deceive young people! Today's post-95s and post-00s are very good at Web3, meme coins. You want to play offline lectures, deposit cash, and reward people for recruiting others? Sorry, they've already run off to farm airdrops on the chain.
Old folks are different; they are clueless about blockchain and Web3 concepts. Hearing the sophisticated words 'RWA' and 'Web3,' they only think of four words: making big money. They also don't know how to check white papers or look at on-chain data. They believe whatever pie the lecturer draws. Not to mention that these Ponzi schemes are especially good at 'emotional appeals,' such as 'investing in RWA is saving wealth for future generations' and 'not investing is being out of touch with the times.' When old folks get excited, they take out their retirement money.
I have to say something fair: old folks aren't stupid, they just trust 'experts' too much. Unfortunately, these 'experts' are either dumb or bad, specializing in exploiting information asymmetry and fleecing the elderly. Don't their consciences hurt?
Ponzi Scheme's Tricks: Three-Pronged Approach + Pyramid Scheme Flavor
These Ponzi schemes that ride on the RWA concept can be summarized into three tricks:
Building momentum: first, hype RWA as the 'ultimate trend in blockchain,' confusing you with a bunch of sophisticated jargon, then tell you that 'now is the last chance to get on board.'
Drawing a pie: calculating the return for you, often talking about 'annualized 50%' or 'doubling in half a year,' and taking out a bunch of 'success stories,' which are actually all photoshopped or data adjusted in the background.
Order urging: Limited-time offers, rewards for recruiting others, team dividends, blatant pyramid scheme model, forcing you to pay quickly and pull relatives and friends to 'make a fortune' together.
What's even more disgusting is that they also like to do 'offline experiences.' Rent a hotel conference room, put on a currency counter and cash, and find a few shills to shout on the spot 'I invested 100,000 and have already earned 500,000.' When the old folks see it, their blood is boiling, and they immediately take out their money. Brother, this is not called investment, this is called getting into a pit!
These Ponzi schemes' 'RWA tokens' have no underlying asset support at all. Real RWA, such as those issued in Hong Kong, has financial products in the middle layer and valuable and profitable assets at the bottom layer, with clear cash flow and regulatory endorsement. You can't even explain what real project this token is invested in. How can you empower the real economy? With your mouth?
How 'criminal' is it to run a Ponzi scheme? Come, let's calculate how many years you can be imprisoned.
As a lawyer with a sense of justice, I can't stand these blatant Ponzi schemes that cut leeks. Don't think that putting on the 'RWA' guise means no one will care. Issuing and promoting virtual currencies in China, especially running Ponzi schemes, touches the red line of the law. Let's take stock of what crimes these people may have committed and how many years they can be imprisoned:
1. Crime of illegally absorbing public deposits
Don't think that renting a conference room in a five-star hotel and finding a few actors in suits to stand on stage can package illegal fundraising as 'financial innovation.' According to the Supreme People's Court's judicial interpretation, the following four characteristics constitute illegally absorbing public deposits:
Illegality: Not approved by financial regulatory authorities
Publicity: Public promotion through media, recommendation meetings, etc.
Inducement: Promise to repay principal and interest or pay a rate of return
Sociality: Absorbing funds from unspecified targets
Which of those 'RWA evangelists' who frantically swipe the screen in video accounts is not shouting 'guaranteed principal and interest,' 'static income,' and 'dynamic rewards' at the camera? Some even hold conferences directly in community activity centers, demonstrating how to exchange RMB for U on the spot. This is simply engraving the 'four-element' standard on their foreheads and breakdancing.
According to the latest sentencing standards, individuals who illegally absorb public deposits exceeding 1 million or targeting more than 150 people will face imprisonment of three to ten years. Those who run 'hundred-city alliances' and 'ten-thousand-person conferences' are probably going to spend their whole lives in prison.
2. Crime of fundraising fraud
If illegally absorbing public deposits is 'running blindly with your eyes closed,' then fundraising fraud is 'running wildly with a knife' - the core difference lies in whether there is an 'illegal purpose of possession.' Lawyer Mankun teaches everyone three tricks to identify it:
Look at the flow of funds: does the money go into personal accounts or corporate accounts? Is it being used for squandering or transferring?
Look at the authenticity of the project: are there verifiable underlying assets? Such as real estate, equity, supply chain documents, or other physical or legal certificates?
Look at the team background: do the founders dare to show their faces? Do they dare to use their real names? Do they dare to publicize their business licenses and financial licenses?
Those who run 'RWA Ponzi schemes' write project white papers more perfunctorily than elementary school students' compositions. The team introductions are all titles such as 'blockchain experts' and 'Wall Street returned elites,' and they don't even dare to put up real photos. What's even more ridiculous is that the so-called 'empowering the real economy' is just renting a shared office for staged photos. What's the difference between this and e Zubao renting Diaoyutai State Guesthouse for a meeting back then?
According to (Criminal Law) regulations, those who commit fundraising fraud with a particularly huge amount (over 5 million) can be sentenced to life imprisonment at most. Those who fool old folks into YOLOing their retirement money really should let them experience the taste of 'jailhouse tears.'
3. Crime of organizing and leading pyramid schemes
Now Ponzi schemes have learned to be sophisticated, and they don't engage in 'three-level distribution' anymore, but play 'community consensus' instead, but the essence remains the same. As long as these three characteristics are met, it's just a pyramid scheme in disguise:
Entry fee: You must first buy coins/pledge to get qualified.
Recruit others: Developing downlines can unlock higher returns.
Team remuneration: Income is directly linked to downline performance.
This lawyer has seen the system table of a certain 'RWA ecosystem' and exclaimed that they are experts: static income is at least 1% per day, and dynamic income direct referral reward is 30%, and you can still get 10% for indirect referrals. Even more amazing is that they also hold a ranking competition for 'city nodes' and 'super nodes,' playing the three-level or more pyramid scheme system to a new blockchain height.
According to judicial interpretation, those who organize internal participants in pyramid schemes with more than 30 people and more than three levels will be investigated and prosecuted. Those team leaders who post 'good news' in WeChat groups every day are probably memorizing (Pyramid Scheme Prevention Manual) backward.
Finally, let me shout again: stop it! Don't think that hiding behind the video account means no one will investigate. On-chain data, fund flow, and promotional records - the police will check everything. Do you really think (Criminal Law) is just for show? Prison food is not as sweet as the 'annualized 50%' you brag about!
Conclusion
Old folks, protect your retirement money.
Speaking of which, this lawyer really has to shout out for the old folks: stop embracing 'RWA'! These Ponzi schemes' 'RWA tokens' have nothing to do with real RWA. Real RWA is a compliant financial product, and it is currently only available overseas. Ordinary retail investors in China can't even buy it. The 'RWA' you see in video accounts and offline lectures is just an air coin. The money you invest in it is likely to be lost.
Old folks, investing is not gambling, and blockchain is not magic. If you want to manage your finances, go to the bank to buy some treasury bonds and funds steadily. Don't believe those nonsense about 'annualized 50%' or 'doubling in half a year.' There is no such thing as a free lunch, only traps. Protect your retirement money and don't let 'Web3 evangelists' swindle all your savings.
Project teams, have some self-respect.
Finally, this lawyer would like to say to those project teams that use the RWA concept to run Ponzi schemes: have some self-respect! Don't think that you can do whatever you want by putting on the 'RWA' guise. The eyes of the law are sharp. Every record you make in video accounts, WeChat groups, and offline lectures is evidence. Every token you issue has a clear on-chain address. The police are not looking for you now, it's just not time yet. When the day comes to arrest you, it will be too late to cry.
Finally, we once again remind the majority of investors, especially middle-aged and elderly friends, to be wary of Ponzi schemes under the RWA concept. Before investing, be sure to understand the authenticity and legality of the project, and avoid blindly following the trend. At the same time, we also call on regulatory authorities to strengthen the crackdown on such fraudulent activities, maintain the stability of the financial market, and protect the legitimate rights and interests of investors.
This article is reprinted with permission from: (Deep Tide TechFlow)
Original Author: Mankun
This article, 'RWA Becomes a New Scam Term! Lawyers Expose 5 Common Ponzi Schemes Targeting Retirees' Retirement Money,' was first published on 'Crypto City.'
