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Due Diligence: 10 guides and alignment with legit online investment

…as hundreds of ICOs string up daily, Bitcoin club, still stands out since 2014

In a typical investment Ponzi scheme, fraudsters promise incredibly good and/or incredibly reliable returns. And they deliver – for a while. But they’re not investing in anything. Instead, they’re using money from new investors to pay their obligations to the old, including the exaggerated returns promised to those who “get in on the ground floor.” But eventually, the operation can’t bring in enough fresh money to sustain itself and collapses.

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If you’re like most people, you’d jump at the opportunity to put your money into a surefire investment that promises above-market returns. But if a broker or anyone else tries to sell you on such a deal, use caution. You could become the victim of a Ponzi scheme, a type of ruse that for nearly 100 years has ripped off investors for tens of billions of dollars.

Besides original criminal Charles Ponzi himself, perhaps the best known perpetrator of the Ponzi scheme is convicted hedge fund manager Bernie Madoff, who was sentenced to 150 years in prison after being found guilty of engaging in an operation that lost about $50 billion. In the complaint the U.S. attorney filed against him, Madoff himself was quoted as telling senior employees that the operation amounted to “a giant Ponzi scheme.”

Lastly, if it sounds too good to be true, then chances are it probably it’s fake.

Ten ways of Avoiding Ponzi
1) Check to make sure the firm has been in business for a suitable length of time. Make sure they have offices you can visit, and where they are known. Don’t settle for a meeting in some other firm’s conference room without a thorough explanation of why you’re meeting there.
2) If something sounds too good to be true—it probably is. Don’t fall in line because someone promises you the moon. If you want to take a risk, try this first: Every time you are interested in something that sounds attractive but incredulous at the same time, don’t leave the meeting until you have asked 20 additional questions about it.
3) Beyond their claims of “riskless reward,” the criminals behind Ponzi schemes operate by avoiding the checks and balances that apply to most legitimate money managers. Money managers that maintain custody of client assets should always be viewed as a “red flag” by consumers.
4) The same “recognition principle” that applies to custody also applies to auditing. One of the reasons that the Madoff fraud remained undetected for such a long period of time was the lack of a credible auditor. The fact that many professional investors failed to spot this potential for wrongdoing from an undersized auditing firm gets to the heart of what allows Ponzi schemes to exist in the first place — failure to conduct due diligence.
5) Ponzi schemes only exist because participants are not thorough in their due diligence and do not ask the right questions. This often stems from excessive reliance on the reputation of a famous investor and the reputation of clients.
6) If a business idea cannot be explained, it is suspicious Focus on attracting new clients. The company or proprietor running the scheme focuses all their energy into attracting new clients to make investments. Without a constant flow of new investments to continue to provide returns to the scheme owners and older investors, the scheme falls apart.
7) Take time to think about it: Don’t sign up for anything you must take advantage of that day. If something is good and honest, it will still be available to you 24 hours later.
8) Avoid investments, advisors and approaches that are opaque: Investment professionals talk about investment assets in terms of transparency—that is, they are clear to anyone who wants to look into them. The reverse of this is an asset that is opaque, or a black box—that is, you cannot tell what it is, how it is handled, or what is happening with it.
9) Track Record of Promoters : Apart from doing your own research about a company, you should check the track record of its promoters as well. They should have clean image in terms of delivering promises and shouldn’t have been involved in any controversy or fraud. If you are unable to find any reliable information regarding them, then do a search on the internet. You will surely get something.
10) You are discouraged from asking questions.

Legit online investment
Bitclub Network (BCN) is a community of entrepreneurs from all over the world who have merged to make money and leverage digital currencies, including bitcoins.
Together the network uses it purchasing strength, leverage and programming abilities to offer its member a legit opportunity to making money by sharing profits and investing in the companies mining operation.

Bitclub has developed a unique software that allows them to mine for multiple digital currencies and convert them into bit coin currency every day. New currencies are being mined everyday all day, 24/7, depending on which is the most profitable to mined at the time. All profits from the mining operations are shared and pay out daily to bitclub members. has develop a very unique mining software, exclusive to the company that allows them to mined multiple currencies and convert them in to bit coins the same day. This process allows the company to increase profits while minimizing cost and diversifying the investment into multiple currencies. The software it’s pretty revolutionary in the market place, to say the least.

To prove its eligibility and transparency
1. Bitclub Network was launched in 2014 and 3 years on, it is still going strong and stronger
2. There is a commodity and it is Digital Currency Pool Shares (Bitcoin Pool Shares).
3. Bitclub will survive even without new members joining the company because of the innovative ideas that the entity introduces to the company like CoinPay etc.
4. The shares in BCN are legit and will be sold out sooner or later.
5. The shares actually grow and the shareholders may actually trade them off.
6. Earnings are actually higher than what the author makes them out to be.
7. Many investors have usually hit ROI within their first year of purchasing shares. Some as early as 4 or 5 months. All this just from daily dividend earnings never mind the recruitment compensation plan earnings.
8. The good news is that, even after making you ROI, you still have your shares intact and daily earnings even multiply. Where on earth can you find such an investment model like BCN? Very few entities I presume.

Joseph Braithwaite Dolapo is a programmer, Internet entrepreneur, philanthropist, , writes from Pennsylvania, Unites States and also lives in Nigeria.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.