Hello everyone, I am Fu Le, someone who has been through ups and downs in the cryptocurrency world for six years and has seen a lot of scams. Today, I want to tell you about a 'scam' my friend encountered while being lured into contract trading for eternal profit, hoping that investors new to this market can learn from it.
The protagonist of the story is Xiao Hui. At first, he only bought U from the U trader at the exchange, which is a common operation in the cryptocurrency world. However, what he didn’t know was that this U trader was not an ordinary businessman but was disguised as a so-called 'eternal profit' trading teacher.
After Xiao Hui transferred money to the U trader, he hadn't received the U yet when this disguised U trader proactively sent a series of enticing trading records showing substantial profits.
The U trader seductively said: 'I only use tens of thousands of U to trade contracts each month and can easily earn over a hundred thousand U.' Xiao Hui looked at this and felt half-believing. After all, who wouldn't be tempted by such huge profits? After hesitating for a long time, Xiao Hui still decided to give it a try. Little did he know, this attempt was like stepping into a meticulously arranged trap.
The scammer did not follow the normal process to transfer the U purchased by Xiao Hui to him but instead lured Xiao Hui to open an account at a 'shady' exchange he had never heard of and even had him transfer the U to this exchange.
Xiao Hui felt puzzled at that moment; why did this seem different from the normal trading process? However, he checked and found that these U could indeed be withdrawn, but the transfer would take several minutes. Xiao Hui thought to himself, since it can be transferred out, there shouldn't be any major problems, so he slowly let down his guard and began trading with this teacher.
At first, the trades the teacher had Xiao Hui do were small gains and small losses, and the market mostly was fluctuating. But one particularly strange thing was that the positions were opened extremely large. Xiao Hui felt puzzled at the time, but seeing that this exchange could offer leverage of up to 150 times and that he could still make money, he didn't think much of it. As time went on, Xiao Hui's trust in this teacher deepened more and more.
To be honest, when I first heard this, I thought this trading teacher only made a living by earning commissions, but what happened later far exceeded my imagination.
Until the market suddenly presented a trending situation. At this moment, the 'eternal profit' teacher, as if suddenly receiving some key insider information, strongly urged Xiao Hui to go long and adamantly refused to let him set a stop-loss. Xiao Hui watched as the price gradually fell, feeling extremely anxious, wanting to stop-loss several times.
But this teacher, like crazy, kept sending various messages to Xiao Hui. One moment talking about his life experiences, another moment sharing trading insights, and then starting to preach about success theories and motivational quotes. Anyway, the goal was clear: not to let Xiao Hui stop his losses and even encourage him to increase his position.
Xiao Hui was bombarded by this information and felt dizzy, ultimately still following the teacher's advice. The result? Xiao Hui's position was liquidated before the market even hit the bottom. Xiao Hui was stunned; this was his hard-earned money! He wanted to seek an explanation from this teacher, but when he opened the chat interface, he found he had already been blocked. Xiao Hui sought help everywhere, wanting to recover his losses, and eventually found me.
Everyone can probably guess that Xiao Hui would never be able to get this money back. After all, throughout the entire process, all the key operations were completed by Xiao Hui himself. In the crypto world, situations like this where a trading teacher faces a loss seem quite common.
But things were not that simple. This reminds me of something I heard from a friend in 2019 about a group of people's operations. They were a group specifically operating 'shady' exchanges, looking for KOLs (Key Opinion Leaders) everywhere to entice these KOLs to draw investors to their exchanges for trading and even offered up to 50% rebates. At that time, I thought this was quite normal; isn't a 50% rebate common? But in reality, that wasn't the case at all. What they were giving back wasn't commission, but deposits!
That's right, it's that terrifying. If a user deposits 10,000 U, they will return 5,000 U. But there is one crucial precondition, which is to find a way to make the user get liquidated. By now, you should be able to guess the logic behind this scam.
They are 'slow workers who produce fine work.' Once the investor gets liquidated, those trading teachers can receive corresponding rebates. Some might ask, can't investors withdraw their funds? Indeed, they can withdraw, but the dozen or so minutes required for each withdrawal is exactly the cost that the exchange anticipates for greater profits. Moreover, I suspect that the KOLs cooperating with these exchanges may have paid a portion of the deposit to the exchange. This explains why when Xiao Hui wanted to liquidate halfway, that trading teacher would react so sensitively and excitedly.
In my view, the situation Xiao Hui encountered is almost identical to this pattern. Although we cannot completely rule out that this was a purely accidental trading incident, the pattern I share today undoubtedly exists.
So, I must solemnly remind everyone. If a teacher invites you to a completely unfamiliar 'shady' exchange for trading, you must be vigilant. Do you think they are after your transaction fees and commissions? In fact, what they are really aiming for is your principal!
In this alluring yet perilous world of cryptocurrencies, we must learn to protect ourselves and not easily believe in the so-called contract 'eternal profit' myths. Remember, investment carries risks, and one must be cautious when entering the market. Never let temporary greed blind your eyes, otherwise, you will definitely be the one who suffers in the end.
I also hope that friends who are currently engaged in or planning to engage in cryptocurrency investment can always maintain a clear mind and learn to identify various scams and traps. When choosing a trading teacher or exchange, be sure to conduct thorough research and understanding, and don't fall into the traps of scammers.
In this era of information explosion, we must learn to distinguish between true and false, and not easily believe in rumors and hearsay. Only by staying calm and rational can we navigate steadily through the turbulent seas of the cryptocurrency world. Investment requires caution; preventing fraud starts with me! May we all find our own path to wealth in this world filled with opportunities and challenges.