Crypto Investing #71 – When Is A Cryptocurrency A Scam? – By Tai Zen



what's up guys this is ties in I'm broadcasting from downtown Atlanta Georgia right now with me today is not the Honorable grand master legendary will be named Leon Foucault it's a sad day however with me today is another one of our team members who wishes to remain private at this moment and he goes by the skinny say hello skinny hello everybody all right so in this video guys I want to talk about how cook took every cryptocurrency that you invest in will be accused of being a scam and what to do about it okay there are so many crypto currencies outside of Bitcoin even even Bitcoin has been accused of being a scam okay so in in the history of every cryptocurrency that's on the market right now at some point in their life span or their or the life of that cryptocurrency it will be accused of being a scam almost every day you can search for something where the cryptocurrencies name in the word scam is going to be tied to it so don't be surprised okay when you get people that you know jump on a slack page and all of a sudden going to instant credibility because they heard from their uncle's cousin that it's a scam yeah you always have to do your due diligence yeah so how do you know like the first thing we need to do is you know we need to define what constitutes I think that it's in we did this in the video called what is a Bitcoin maximalist part two and we define with a scam okay a scam is when somebody promises you know a product or a service to you in exchange for some funds in other words they ask you for some money and they tell you they're going to do a B and C and then when they get the money after you give it to them they don't do a B and C okay and never in had any plans to yeah they never had any plans to do it that's a scam that means that they're ripping you off they're tricking you they're deceiving you right and they said they were you know once they get the money from you they're going to go out and make a B and C happen and then after they get the money from you they never even worked on it that's a scam now if someone gets the money from you and they go work on building a B and C product or service and it turns out to be very poorly done that is not a scam that's incompetent you know and that's the risk that you take for investing these projects instead of they're competent they'll build something like aetherium that's worth four billion dollars and if they don't build it correctly then it's only worth you know thirty forty thousand dollars so that's a matter of incompetence and that's the risk that you take right so whenever our team investors in a cryptocurrency the biggest thing that we want to focus on the first thing we want to make sure is that the people that we donate money to right they don't just run off with our money they actually build the software or make an effort to build the software that they want that they claim that they are going to build okay and if they do that then we're fine with it and if they do a piss-poor job of it oh well that's the risk that you take okay so whenever you get research any cryptocurrency always know that they will always you will never find any cryptocurrency that is not being accused as a scam so that's normal don't just get over it okay what you want to look for is are these guys reputable how they worked on other projects with other reputable people before right so let's just say that somebody that has worked with some somebody like a vitalic butyrin of the etherium blockchain well that guy he's built a network that's worth four billion dollars it does not make sense for him to go and voucher and we call that voucher or or school or vouch for someone that he doesn't believe in okay doesn't mean he's perfect he could pick the Bowser for the wrong person right I mean look what happened to the guy that has helped build a theory him and they went built the DAO hub dot org it was a disaster it was a total disaster and we invested him we lost money and that's okay it's okay they did not rip us off they wrote code that was you know that had bugs in it and they didn't review it clearly before they release it to the public and everybody got hacked you know so that's not that's not a scam but that's just they they they just there was buzzing it and they did not catch or they did not think was a big deal and it got a somebody took advantage of those bugs in the software okay so after you so that you get over the fact that the crook of code is being accused of scam look at the people that's involved with it and see if they're known okay usually if somebody is speaking at a conference or anything like that or they go out and they go for six months a year and go make videos and they they go out and talk about different projects then that kind of helps out because then at least you can hear from the people developing it what that project is about okay at least you get it from their mouth and not from somebody reading on some some troll or somebody on the forums as an investor or a donor you want to enter a project you want to know that it's going to happen yeah or that this person is competent enough to do it you know and it also helps to see if the people that are involved are also you know who is who they surrounded with you know like for example we get approached almost every month we get approached by different ICO projects that ask us to be in escrow so what that means is that they're gonna the wallet that they use to receive all the millions of dollars donations that they get and you know usually they set it up as two out of three signatures so two out of three people have to sign off on it before the money can be moved right and every month you know these projects are contacted me and Leon food our constants were well known in the cryptocurrency investing community right they know that that by having us be one of those signatures one of those three signatures has a lot of value to that project because you know the community is going to see that if Leon and I believe it enough to vouch for the project and be one of the key holders and to sign off on the money then it must get legit and until this day we just have decided not to do that because we're not going to be responsible we don't want somebody to come back and say hey man you know you guys had one of the signatures you know you guys are one of the three signatures for there's ten million dollar pool or this twenty million dollar project how did you guys not know that these guys were scammers and you know you you guys helped them scam us or the public you know we don't want to be accused of that that's why we keep saying no and every month we get projects you know to leave one of the signatures women to be one of their escrows yeah okay so that's very difficult for us for our team to accept that kind of risk and lose our credibility okay so I just you know more than anything else I just want to share with you guys in this video that when you guys hear people accusing something of a being a scam you know look for facts look for numbers look for the people behind the project look for you know ask for data ask what evidence okay if somebody says that they feel that this is a the project is a scam where they feel that the guys are no good there's not enough evidence you know like like there's a few guys that were accusing some projects of being a scam in the in the altcoin discussion forum on Bitcoin talk now right and one of the guys one of the major guy that was accusing everybody of being a scam right somebody came along goes hey man you're the one that's the scammer because you asked for help for me to save some of the tokens that you want and I saved it you promised me you know a couple thousand of these tokens and you never paid me oh and the guy that I never promised you 2,000 tokens for helping me recover these lost tokens and then the other guy went in screenshot the actual forum discussion where they have per say the conversation and in the the accuser said you know and the guy that said that he didn't stand up when he did because it was him yep and he goes oh well you know you're a sucker for you know helping me out too bad you know you same thing so when you have something like that then you can clearly say that yeah this guy is a scammer but you know other than that you can't you know you can you hear it's not it's not enough information to just say that project is a scam because every project has been accused of being a scam yeah you know so I just want to share that with you guys in this video if you guys find it helpful I'll give it me a two thumbs up if you guys don't find it helpful give me a thumbs down and I look forward to seeing you guys in the future video you have any friends family or colleagues that are interested in learning how to invest in the market share this video with them and also follow us at www.stanford.edu

43 thoughts on “Crypto Investing #71 – When Is A Cryptocurrency A Scam? – By Tai Zen”

  1. I really like you videos 🙂 Could I ask you about your opinion about Antshares / NEO, if you are informed? I see there possible opportunities, or did I oversee something?

  2. I HAVE COME ACROSS MANY VIDEOS AND READ MANY COMMENTS FROM PEOPLE ARE ALWAYS TELLING US TO DO OUR HOMEWORK.

    THE LEAST YOU CAN DO IS ADD A FUKING DATE.!
    FUNNY,I AM ALWAYS THE ONLY ONE WHO NOTICES THAT. DATES ARE IMPORTANT IN GENERAL.I'M AS DUMB AS A BOX OF ROCKS,AND THE ONLY ONE WHO PAYS ATTENTION TO DETAIL. IT SHOWS HOW ALL OF YOU JUST COME HERE TO FIND AN EXCUSE TO SCOFF AT ONE ANOTHER, INSTEAD OF TRYING TO LEARN A THING OR 2

    SO FAR THOSE PEOPLE DONT POST DATES IN THEIR DESCRIPTION BOX.

  3. SCAM ICO!! please be aware to not invest in DENTACOIN
    https://steemit.com/crypto/@cryptopaul/ico-scam-alert-dentacoin-com

  4. Hey guys you should check the HEAT platform, it's 100% new code, ultra-scalable network, already up and running, go check it out, still small market cap

  5. love your videos. would you please consider revisiting shapeshift.io and maybe even ETH vs ETC updates? thanks

  6. Hi guys. Another great video. Thanks. Have you heard of IOTA and do you have any thoughts on it? I like the whitepaper but as a novice, I thought I would ask you guys…The Experts. Thanks for your insight. Be Well.

  7. Tai, always love following your videos. If you'd like to learn more about IOTA, be sure to check out the HelloIOTA channel for videos. We'd love to hear what you think about IOTA in one of your upcoming videos!

  8. Hey Tia, I like your videos and find them very informative. Only feedback i will give is you can make the videos shorter. The message could be delivered in 2-4 minutes easily. Anyways i guess the videos are impromptu sometimes. Keep them coming.

  9. a Cryptocurrency is a scam, when you loan the money and they dont give it back ! ( i loaned small amount first $10 to ,)
    OR when it is NOT used as currency to exchange goods/services ….., and , instead as a device to gain financial meltdown/power etc. etc. . or maybe lose the money by trading it … just sayin
    so e.g. bitcoin is not a scam because it is used as currency/money . for … good and services .
    and maybe a cryptocurrency is a scam, if the cryptocurrency does not have a full node . im just sayin
    before i watched your video
    signed I*Y85av#)G90fk-qm

  10. THANK YOU … My thoughts exactly… I find it funny how "PEOPLE" call most/all projects scams with out evidence and then charge .1 BTC to be your friend for 1 hour, now that is a SCAM. That said, I do believe most projects will fail.

  11. I disagree with you when you said that if the owner of the coin is going out and speaking about their project that means its legit and you have confidence in them! Look at Onecoin the biggest scam ever, they go out and travel the world and speak about their useless coins!

  12. Tai I've been following you for quite some time, and I really love this video here, I wanted to ask would you mind if I re-shared your video on my page?

  13. What will i buy with my Bitcoin? I do not do business with the likes of Amazon, Walmart , Overstock.com .

  14. $15,000+ bitcoin would create an army of World banker hackers who would steal your money. And it would not be very long till they have 10-15million Bitcoin and total control soon after.. Precious metal in your hands buys the farm.

  15. what's your thought on EOS? They do have a solid tech background but their ICO gonna be one year long with unlimited cap, is that an aka scam?

  16. If you don't want to worry about getting scammed, you should check out this hot new currency called Super Money. Youtube it, you'll thank me later.

  17. Thanks for this video, very good advice. I blogged it on my Steemit. https://steemit.com/cryptocurrency/@wvm/when-is-a-cryptocurrency-a-scam if anyone reading this is a part of the community follow me here https://steemit.com/@wvm

  18. Love your channel. Check out this short article and let me know what you think. https://steemit.com/cryptocurrency/@jetblake/beware-of-slim-shady-crypto-coins

  19. Thanks Tai and Skinny great video again. I thought you were going to talk about outright scam coins like one coin and the likes. so many people are fulling for them here in Africa. Luckily i have already been informed about the difference a while back.

  20. Hey Tai and The Legendary Grandmaster.I saw in Twitter that Leon is following DarkRus project. Can you please do a special video for DarkRus and Mercury if you are involved in the project and know facts around it. Your videos are great!

  21. Hi Tai Zen
    if you could add a date stamp to your videos that would be really handy, keep up the good work by the way, when I get my head all around this I will be looking for your ETH address

  22. From: Atlanta, GA. What is the best way to buy bitcoin, and what's the least price fee do u consider when buying btc from a seller ?? -thanks

  23. Let me just say this: If another ICO is asking for you to send them any of your ETH especially your ETH or BTC to invest in the ICO it is not worth the risk, I don't care how much money someone makes from it, as these start up guys know how valuable ETH coins/tokens are and how valuable BTC is as well. I will not give up an already proven investment that has already and will in the future provide a greater return than we could have possibly ever imagined. This is how many will lose their investments in BTC and ETH jumping from this ICO to that ICO, some get lucky some won't when they could have just stayed with BTC and/or ETH and made out like kings. I have invested some very large sums of my cash, and worked my ass off to build up my rigs and to make sure they can run almost flawlessly 24/7 to mine ETH, and i will be damned if im going to invest it away in some unknown ICO that promises something out of nothing. Even POS is not the same as POW. We miners know the value in mining and using less electricity will not help the environment as we already have ways to make electricity very very efficiently and environmental friendly. Did you see how easily ETH just blew by $300 on to $320, that is just the beginning and these start up ICO's know that. Why else would they ask for ETH instead of BTC or any of the other cryptocurrencies haha. To me asking for my ETH or BTC to invest in another ICO is like asking for my silver or gold bars to invest in another fiat currency.

  24. Currently invested in Dcorp.it, and it's the most unique idea I've come across so far. What do you think about this??

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