"Coin Scam Targeting Retail Investors in Bear Market with Promises of 'Promising Cryptocurrencies at Half Price'"

"Soon to be listed on exchange... 900% profit rate"
Multi-level structure... helpless if a scam occurs

"Do you know about direct transactions with listed companies?" Jeong, a man in his 30s, came across a YouTube video that claimed to teach how to become wealthy. The video explained that buying promising cryptocurrencies at more than half off is like buying organic cabbage from a wholesaler rather than a retailer. Jeong, tempted, provided his phone number through the link in the video but soon stopped feeling uneasy. Later, he came across posts about scams using the same method on online communities and breathed a sigh of relief. Jeong said, "Since stocks and cryptocurrencies are in a bear market, I was looking for other ways," adding, "Desperate people are likely to fall for it easily."

Direct transactions with listed cryptocurrency companies claim to be similar to trading unlisted stocks. The idea is to hold valuable cryptocurrencies in advance and then resell them at a higher value once they are listed on cryptocurrency exchanges or their prices rise. Such information is easily found on YouTube videos or KakaoTalk open chat rooms as of the 13th.

However, it is difficult to find explanations as to why the promoted cryptocurrencies are valuable. Instead, they emphasize returns of about 800-900% or the possibility of escaping poverty and the life of a salaried worker. In fact, a cryptocurrency dealer involved in direct transactions with listed companies, contacted the day before, urged investment by claiming that OO Coin would soon be listed on the domestic cryptocurrency exchange Coinone. A Coinone official said, "According to Coinone's policy, the listing status and schedule cannot be disclosed in advance," adding, "This is typical of a scam coin." A scam refers to a type of fraud where funds are collected based on false information and then the perpetrators disappear.

There is also the risk of so-called 'meoktwi'?absconding after receiving money to purchase the cryptocurrency. Even if money is paid to buy the cryptocurrency, it is uncertain whether the payment is made to an account of a verified foundation or company. Moreover, since the company is likely based overseas, it becomes difficult to trace even if 'meoktwi' occurs.

The reason such fraudulent activities persist lies in multi-level marketing. Various methods are mobilized to offload inventory to lower tiers in the pyramid structure. On portals like Naver and Daum, posts recruiting distributors and branches to sell promising listed cryptocurrencies can be easily found. People who have worked in existing multi-level marketing industries are especially welcomed and encouraged to switch to cryptocurrency sales. There were also mentions of preferential treatment for those who have operated telemarketing sales for more than two months.

These fraudulent activities are analyzed to be increasing as the cryptocurrency market has recently been sluggish. According to the domestic cryptocurrency exchange Upbit, Bitcoin, which was worth 40.15 million KRW on the 1st of last month, dropped to 25.74 million KRW as of 9:14 AM on the same day. This represents a decline of about 36% in one month. Due to the massive crash of Terra Foundation's Luna Coin and bankruptcies of cryptocurrency companies such as Three Arrows Capital, the situation for cryptocurrency investors is becoming increasingly difficult.

However, experts point out that even if one falls victim to direct transaction scams with listed cryptocurrency companies, punishment is difficult. Hong Ki-hoon, a professor in the Department of Business Administration at Hongik University, said, "It is hard to punish if there are no clear criminal acts and regulations are insufficient," adding, "Investors need to make sound judgments when investing."

This content was produced with the assistance of AI translation services.