I am Fu Le, a person who has been struggling in the cryptocurrency market for six years, witnessing the ups and downs of the market, and have seen quite a few scams. Today, I want to tell you about a 'scam' my friend encountered while pretending to make contracts for eternal profit, hoping to warn investors who are new to this market.


The protagonist of the story is named Xiao Hui. At first, Xiao Hui only bought USDT from the exchange's USDT dealer, which is a common operation in the cryptocurrency circle. But what he didn’t know was that this USDT dealer was not an ordinary merchant, but a teacher disguised as 'eternal profit'.

After Xiao Hui transferred money to the USDT dealer, he had not received his USDT yet, when this disguised USDT dealer proactively sent a series of trading records that were so profitable they made one envious.


The USDT dealer even said enticingly: 'I only use tens of thousands of USDT for contracts each month, easily earning over a hundred thousand USDT.' Xiao Hui looked at this, half believing and half doubting. After all, who wouldn't be tempted by such large profits? After hesitating for a long time, Xiao Hui decided to give it a try. Little did he know, this attempt was like stepping into a carefully arranged trap.


This scammer did not transfer the USDT that Xiao Hui purchased back to him according to normal procedures, but instead lured Xiao Hui to open an account on a 'shady' exchange he had never heard of, and even made Xiao Hui transfer USDT to this exchange.

Xiao Hui was confused at the time, wondering why this was different from the normal trading process. However, he checked and found that these USDT could indeed be withdrawn, but the transfer took dozens of minutes. Xiao Hui thought, since it can be withdrawn, there shouldn't be any major issues, so he slowly lowered his guard and started trading with this teacher.

At the beginning, the teacher guided Xiao Hui to make trades that were small gains and small losses, and the market was mostly volatile. But there was one particularly strange thing: the position size was extremely large. Xiao Hui was puzzled at the time, but he saw that this exchange offered leverage of up to 150 times, and he could still make money, so he didn't think too much about it. As time went by, Xiao Hui's trust in this teacher grew deeper.
To be honest, when I first heard this, I thought this trade teacher was just living off rebates, but what happened later far exceeded my imagination.


Until the market suddenly showed a trending market. At this point, that 'eternal profit' teacher, as if receiving some key insider information, strongly urged Xiao Hui to open a long position, adamantly preventing him from setting a stop-loss. Xiao Hui watched the price slowly decline, terrified, and wanted to stop-loss several times.

But this teacher, like someone possessed, kept sending various messages to Xiao Hui. One moment sharing his life experiences, another moment talking about trading insights, followed by motivation and inspirational talks, with the sole purpose of not letting Xiao Hui stop-loss and encouraging him to increase his position.


Xiao Hui, bombarded by these messages to the point of confusion, ended up listening to the teacher's advice. The result? Xiao Hui's position was liquidated before the market even hit rock bottom. Xiao Hui was dumbfounded; this was his hard-earned money! He wanted to find this teacher for an explanation, 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 finally 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 cryptocurrency circle, such failures in following trading signals seem quite common.


But things were not that simple. This reminded me of a story I heard from a friend in 2019 about a group of people's operations. They were a group specializing in running 'shady' exchanges, looking for KOLs (Key Opinion Leaders) everywhere, enticing them to attract investors to trade on their exchange, and offering rebates of up to 50%. At that time, I thought this was quite normal; isn’t a 50% rebate common? But in reality, it was not the case at all. What they were rebating was not commission, but deposits!


That's right, it's that terrifying. If a user deposits 10,000 USDT, they would return 5,000 USDT. But there was one key prerequisite: they had to find a way to get the user to be liquidated. I believe everyone can guess the logic behind this scam by now.


They are 'crafting fine work slowly'. After the investors are liquidated, those trading teachers can receive corresponding rebates. Perhaps someone might ask, can't investors withdraw their coins? They can indeed withdraw, but each withdrawal takes those ten-plus minutes, which is precisely the cost that the exchange anticipates in advance for greater profits. Moreover, I suspect that KOLs cooperating with such exchanges may have paid a portion of the margin to the exchange. This explains why when Xiao Hui wanted to liquidate and exit midway, that trading teacher became so sensitive and excited.


In my opinion, the situation Xiao Hui encountered is simply identical to this type of routine. Although we cannot completely rule out that this was a pure accident in following trades, the routine I am sharing today undeniably exists.


So, I want to earnestly remind everyone here. If a teacher invites you to trade on a 'shady' exchange that you know nothing about, you must stay vigilant. Do you think they are after your trading fees and commissions? In fact, they are really targeting your capital!


In this world filled with temptations and dangers in the cryptocurrency circle, we must learn to protect ourselves and not easily believe in those so-called 'eternal profit' myths. Remember, investing has risks, and entering the market requires caution. Never let temporary greed blind your eyes, or in the end, you will definitely be the one to suffer.


I also hope that those who are involved in or plan to invest in the cryptocurrency market must always maintain a clear mind, learn to recognize various scams and traps. When choosing trading teachers or exchanges, you must conduct thorough investigations and understand them, so as not to fall into the trap of scammers.


In this age of information explosion, we must learn to discern truth from falsehood and not easily believe in rumors and hearsay. Only by remaining calm and rational can we navigate steadily through the turbulent sea of the cryptocurrency circle. Invest cautiously and start by preventing scams! May we all find our own path to wealth in this world full of opportunities and challenges.