Scam in the cryptocurrency business isn't a new thing as most people chasing free money has fallen into the den of scammers several times. A plan to scam with a promise of free money might be easy to detect nowadays although gullible people still can fall for it. However, Tron ROI smart contracts have become the most coded crypto gateway to scam recently. The promise of a high return on investment seems so attractive to many cryptocurrency lovers especially those who want to hit a million dollars in a short time. Unfortunately, many of such money chasers often end up being scammed of their investment even with their eyes wide open and there is nothing they can do to stop their money from being taken by another man.
For the past two weeks, I have watched how several Tron ROI smart contracts started and crashed within a few days of operation with the majority of the investors losing their hard-earned money. Most of the smart contract doesn't last for more than two days. As soon as a good number of investors put funds into the contract developer removes the money from the back door bringing the contract balance to zero and the contract has to stop. Next thing they come up with another smart contract promising a higher percentage ROI and people still invest in the contract with the hope of recovering their lost funds only to end up losing more. Only those who are smart get something from most ROI smart contracts, the majority end up on the losing side.
How most smart contract developers play their games
1. The smart contract codes
On their website, you will read that the contract is verified and the codes are there on the Tron blockchain for everyone to check it out. But how many people know how to read a smart contract code to see where there are red flags. Though the smart contract can be viewed on tronscan, only relatively few people can understand how to read it. What most investors are concerned about is the contract balance. Contract developers knew that majority cannot read contract codes so they design the contract code and keep the key in their possession waiting for the day of slaughter. Again, it is written that the smart contract is decentralized with no human control and no back doors but the developer always has a way of interfering with the contract at a crucial time. Everything is designed to favor the owner of the project and his or her partners in the project development.
2. The percentage of ROI and investment plans
There are a lot of Tron based smart contract out there which promise so many things to be fulfilled and the catch of them all is on the ROI percentage offered to attract more investors into the contract but at the end or midway the contract get scrambled. For example, some promise 25-30% daily ROI until 200-300% is complete, and 30-50% auto reinvestment with a minimum investment account of 30-100 TRX. This kind of investment plan seems cool and enticing to investors especially those with low funds. The auto reinvestment seems to be something designed to help investors and keep the contract sustainable, but the truth is that it's actually planned to hold back part of the daily ROI of those who might start withdrawing their interest from day one of the contract. This is done to attract more investors and keep the contract balance higher enough for the developer's benefit when they decide to strike. It is noteworthy to note that most smart contract doesn't last for more than 5 days before crashing.
3. Promotion and motivation
Smart contract developers run a lot of promotions to attract more investors by hiring top YouTubers to promote their system to their subscribers, an easy ploy to draw many people into the project. Most also runs zoom meetings with their investors daily where they come up with motivational speeches to encourage investors not to withdraw ROI until a certain number of days or months. They can even come out with a ROI compounding chat to raise the hope of investors. In their telegram group, they keep emphasizing compounding interest and the majority buy into the idea with the hope of getting a huge return at the end of the contract or a set time. But before the contract comes to an end the developer lock up the system to prevent investors from withdrawing their funds. The ongoing scam on tronhero.io lends support to this truth. The developer of tronhero set a total of 20% daily withdrawer from the contract balance for the project. Once the percentage is reached every withdraw made after will fail and gas fees wasted. The developer used this to their advantage such that only them become the first to withdraw and they will withdraw the 20% at once leaving others frustrated. They will continue like this until the contract balance becomes zero.
Almost every Tron smart contract that has come out ends up being a scam. The only ones that have lasted for more than a month are those which are runs on a matrix system where an investor earning depends on how many people he can refer to the system. The others that promise a high percentage ROI are all designed to scam investors.
Friends, be warned of any high ROI Tron smart contract they are all designed to scam investors of their hard earned money.
