Table of Contents
Introduction
COTP was a place where people could invest in cryptocurrencies and get large daily returns on their investments, which were guaranteed. The platform looked like a multi-level marketing (MLM) scheme, but it used tether, a stablecoin that is tied to the value of the US dollar, to make transactions possible. But in the end, it turned out that the platform was a Ponzi scheme, which caused investors to lose a lot of money. In the next few paragraphs, we’ll talk about the COTP platform, all of its claims, and the warning signs that investors should look out for.
What is COTP?
COTP was a platform for investing in cryptocurrencies under the guise of a multi-level marketing (MLM) scheme. The site promised potential investors that they would get 1% to 5% back every day on their investments, depending on how much they put in. On the platform, transactions were made possible by using Tether, a stable currency that is tied to the value of the US dollar.
How much money is invested and how much is earned back?
COTP gave people who wanted to invest different levels of money, and each level came with a different daily return. The amount of money that could be invested ranged from $100 to $10,000, and the daily return rates were anywhere from 1% to 5%. COTP’s promised profits were much higher than those of reputable investment platforms. This should have been a red flag for smart investors that something wasn’t right about this opportunity.
Scheme for Multi-Level Marketing (MLM)
COTP pretended to be a multi-level marketing (MLM) opportunity, and investors were encouraged to invite their friends and family to join the platform so they could make more money. The website had a referral system with many tiers. Investors could get a fee based on how much their friends invested after they told them about the platform.
Warning signs
Investors should have been warned that COTP was linked to several possible warning signs and red flags. First of all, the returns that were guaranteed were very high, ranging from 1% to 5% of the initial investment every day. Anyone who claims to make so much money is probably running a Ponzi scheme since such high returns can’t be kept up over time.
Second, the platform relied a lot on multi-level marketing(MLM). Investors were pushed to tell others about the platform so they could get more rewards. These kinds of scams are often linked to Ponzi schemes, which you should avoid.
Stable cryptocurrency Tether
Stable cryptocurrency Tether was used to make transactions on the site easier, which brings us to our third point. Stablecoins are a legal type of cryptocurrency, but they have been tied to several scams and other illegal activities in the past.
Fourth, the platform wasn’t registered with any government agency. This made it impossible for investors to get their money back if they were scammed.
The COTP’s Falling Apart
In the year 2020, it was found out that COTP was a Ponzi scheme. As a result, many investors lost a lot of money. When the platform suddenly and unexpectedly shut down, investors were locked out of their accounts and couldn’t get to their money. Investors had no way to get their money back because the people who ran the site disappeared without a trace and without giving any explanation.
Conclusion
COTP was a place where people could invest in cryptocurrencies and get large daily returns on their investments, which were guaranteed. But in the end, it turned out that the platform was a Ponzi scheme, which caused investors to lose a lot of money. Investors should be wary of these schemes if they promise big profits, use multi-level marketing(MLM), or use stablecoins to make transactions. In the end, COTP’s failure should serve as a warning to investors that they should be very careful when investing in cryptocurrencies and should always be aware of the risks.
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