One of the biggest criticisms over the crypto market is due to its wild west environment where anything goes. It’s allowed for the sale of unregistered securities, scams, and much more.
While regulators sit on their hands, the crypto community themselves are banding together to wipe out scammers and other less than savory characters from the market, and prevent the likes of paid group leaders from siphoning cash from crypto investors just seeking to make a buck.
Top Crypto Traders Join Forces to Review Paid Groups
Paid groups and paid group leaders are a running joke across the crypto community, but also a very real reality that crypto investors run into on the regular. Given that many crypto investors and traders are down from their initial investment by a large margin – especially if they bought altcoins in late 2017 or early 2018 – they may be more apt to take steps, or even risks, to try and make that money back.
Related Reading | Crypto Investors Believe There’s More Pain Ahead For the Altcoin Market
To accomplish this, many turn to the better traders and those highly vocal about their skills on social media and elsewhere. These traders often share charts, and post screenshots of their ROI or PnL, bragging about their gains and trading prowess.
But it’s not just boasting these traders are interested in, their win rate is shared as a form of marketing, hoping to lure crypto investors into paying for access to a private group that offers trading strategy training, signals, or some combination of the two. These are called paid groups in the crypto world, and anyone can start one and put up a facade of insane gains.
.@SatoshiFlipper, @cryptorangutang, @teddycleps and i are happy to announce the launch of our platform aiming to bring transparency into this community ⚡️PaidGroupReviews⚡️
Over the next 7 days, we will be explaining the features with an official launch scheduled for August 27 pic.twitter.com/jd6sdmDWpM
— The Crypto Monk ⛩ (@thecryptomonk) August 21, 2019
To help provide clarity on which groups are worth their price of entry, a few top traders are banding together to start a platform for paid group reviews, in hopes of preventing crypto investors from being scammed.
What Do Paid Group Scams Look Like?
In one recent example, one paid group leader has been charging a $1,000 per year subscription to join an exclusive Slack channel where this trader claimed they would post setups, signals, and strategies. However, the crypto investors soon learned that the trader neglected to channel, rarely posting the information they had paid to gain access to, and felt that they were taken for a ride.
Screenshots of the paid group were shared on social media showing the participants begging for more content at first, then later when they didn’t receive any additional service, requested a very reasonable pro-rated refund.
Related Reading | Crypto Analyst: Bitcoin Price Could Be Trapped in Tight Range Until Halving
The trader has since all but disappeared from social media, sharing only three charts during the entire month of August thus far, compared to the regular frequency they had been sharing content at.
A paid group review platform will keep those that do attempt to start a paid group honest and will help crypto investors interested in learning and improving a way to filter out the noise and stick with a trader that’s trusted.