Beware Of Fake Crypto Investment Managers

Written by on November 28, 2017

I am VP of Sales for a mortgage company in Fort Mitchell, KY. I take pride in what I’m able to do to help real estate agents and home buyers in achieving their goals. I love the challenge of it all and the relationships developed. I love being the go-to source for all sorts of things from mortgage, marketing, and more. I appreciate the relationships my hobbies and interests spawn over time and put me in contact with people I may not otherwise have reason to meet.

My primary hobby is that of Cryptocurrency and ICO investing. It’s a rush and a constant stream of information, learning and challenge that I thrive on. I am a crypto miner with a custom built 6 GPU mining rig that mines up crypto coins for me every day. I am a swing trader and an ICO investor. After posting about my investments over the past 6 months I began getting friends messaging me asking me for help. They want to invest in ICO’s but know nothing about it. They just see all of the money everyone is making and get a rush a FOMO (Fear Of Missing Out) and want to dive right in. I started helping a lawyer friend of mine and turned his $5,000 into $12,000 in less than two months. He began posting about me on his Facebook page which then drew more investors reaching out to me. I now have 6 clients I help with a small line forming behind them. This isn’t something I could ever do full time because the crypto market is so volatile the stress of my livelihood being dependent on the returns I get while watching my lifestyle swinging up and down in the charts would drive me insane. However, from the time I get home from work until 2am, all I do is research Initial Coin Offerings and read the latest news and trends to get a pule on the market before I dive into my charts and lists. I’ve proven to be very good at what I do and every client thus far I’ve shown serious returns, however, I would NEVER promise such returns to anyone.

I was recently called by someone wanting to invest with me that was recently scammed by an ICO Portfolio Manager. I asked how that happened and she explained that money has been tight for her recently and she really needed a break. She found a lot of people promising high return on investment all over LinkedIn and reach out to one (They have Global and Market in their name and domain). She said they initially promised what was a ridiculous return and requested she send $500 through Western Union. They then asked her to insure it for $1,000. Long and short of it, she was scammed.

#1. Even though I am known to provide strong returns, I would NEVER promise such results to anyone. Anyone that promises returns in this space is a liar. It can be as easy to hit a big loss as it can be to get a big gain. You only lose what you sell, however, so with enough time you can likely come out of most holes and with proper research you can limit your losses and magnify your gains but you have to know the market, the pulse of the market and be able to gauge which ICO’s are worth the investment.

#2. I personally don’t work with cash. When I take on a new client, I create a new Ethereum wallet, send them a link to Coinbase¬†and have them setup an account there which will start them off with $10 in free Bitcoin just for signing up and have them purchase ETH according to their budget. Once the transaction completes (which can be instant or take 2 weeks depending on various things) I have them send the ETH to the wallet I created for them and start putting it to work. Why? Because converting Fiat currency to Crypto has fees associated with it and I want clients to see that. Every transfer of coin has a transfer fee, etc. It also helps them understand the process for when they decide they want to cash out which at the point I liquidate their holdings back into ETH and send the ETH back to their Coinbase account which they can then convert back to USD and put it in their bank account. Finally, because from the time I get their ETH to the time I send it back, every transaction I perform from their wallet can be tracked on the blockchain. Every time coins are sent to and from the wallet, there is a ledger that keeps track of everything. That is the beauty of crypto! Its transparent.

You see, Cryptocurrencies are not really a regulated space right now. It’s still a bit of a wild west. Unlike Financial Advisors, there is no regulation on Crypto Investment Managers. There is no test to take or hurdles to jump over. There is nothing that says “I’m a real professional and know what I’m doing” kind of system. The only thing the SEC currently regulates are ICO’s they consider a security. Coins that pay dividends or promise a return on investment, etc. At that point, the companies launching the ICO is regulated and have to pay around $100k in SEC fees to be compliant. Due to this lack of regulation, there are many scoundrels in the world taking advantage of those wanting to cash in on the Crypto space but have no idea where to look for honest and fair help.

I have a client that sent me 5 BTC (worth over $40,000) and he is from the Ukraine! Why is that crazy to me? Even though we have talked, hes a member of many of the same groups and we are Facebook friends, he doesn’t REALLY know me. He just knew that I know what I’m doing and trusted me to do right by him. Had I been a con man or scam artist, I could very easily keep the BTC and there would be little recourse on his part. I say this because in Crypto, its difficult to police the actions of those looking to cash in on your ignorance and finding someone with your best interest at heart is difficult.

How should you go about vetting someone before investing with them?

#1. Add them on Facebook. Is their page full of get rich quick promises or are is it full of helpful guidance? Do they have a lot of friends or is it a new page? Do they have anyone that has invested with them posting testimonials for them?

#2. Add them on LinkedIn, are they professional? What do they do for a living? How active are they?

#3. Call them. Will they accept a call? Will they talk to you or hide from you? Are they willing to engage in a conversation that teaches you some things or are they oblivious?

#4. How do they operate? Do they want you to send them cash?

#5. Are they in a different country? Yes, I have a client in the Ukraine, but realistically, he’s a blockchain developer and knew he could trust me. If I were an investor however, and I was going to invest with a stranger, they would at least need to be in the same country as me in case something dishonest went down.

#6 This is something I tell every client…Never invest more than you can happily lose. Anyone telling you something different than that, probably isn’t being honest with you about the risks associated with crypto or they don’t know what they are doing. There can be giant swings up and down, some ICO’s can turn out to be scams, all sorts of things can happen. It’s the wild west where HUGE profits and HUGE losses can happen in the blink of an eye. Anyone guaranteeing anything is hustling you!

If you are interested in learning more about the services I offer and how I operate, you can look at my Crypto Wallet Management Services or my Automated Bot Trading

Never make an emotional decision out of desperation. I had to basically turn down the woman that called me today because she explained she was going through a rough period, was recently scammed and looking for a way to get a leg up. The crypto enthusiast and believer in me wanted to take her under my wing and turn her grand into 5 grand and wish her the best! the other part of me felt that her energy and desire to grasp at straws may be cause for her to have a bad break in Crypto and that I didn’t want to be the conduit for that. I know, it may sound hippie’ish, but I told her to get things together, focus on a new job and get things straightened out and then let me know what she would like to do once she had a clear head. I’m not a savior as much as I’d like to think so, haha. I explained that in the state of mind she was in, if I accepted her investment and for any reason at all, the ICO’s she invested in went south, the first thing she would think is “You scammed me!” and I the turmoil would just be bad, bad bad. She laughed, but I think I got her to understand my position. If I were out to get her money, I would have just taken it without a care of the outcome, but that’s not how I work and it shouldn’t be how anyone serious about your well being should work either.

My grandfather used to do something to servers when he would go out to eat. He would finish his meal and say to the waitress, “Hmm, I only have enough money left to have dessert or leave you a tip. What should I do?” If she told him to have dessert, he would leave her a big tip. If she tried to steer him from dessert, he wouldn’t leave her anything. haha The point is, look for people that want to see you do well and have a track record for it. Stay away from the rest.

I hope this helps you avoid issues in the future. If you would like to learn more about Cryptocurrency, I have a video course on Udemy that will get you started for only $10.

Learn Cryptocurrency AltCoin Trading and ICO Investing


Tagged as , , , , , , , , ,


Leave a Reply

Your email address will not be published. Required fields are marked *

Continue reading