“Principal protection and interest assurance, annualized 20%, available for deposit and withdrawal at any time!” Seeing this kind of advertisement, isn't it very tempting? Don't be silly, this is the oldest scam in the cryptocurrency world, yet every year people fall for it. In 2025, a 'virtual currency investment platform' used this gimmick to defraud 30,000 people out of 460 million, and in the end, all 34 scammers were sentenced. Many people know that 'high returns come with high risks', but as soon as they hear the words 'principal protection', they lose their rationality and feel like they have found an opportunity for 'guaranteed profits', only to end up losing their principal.
Let's break down the tricks of this scam: scammers will set up an 'investment platform' and launch various 'principal protection high-yield' products, with annualized returns ranging from 15% to 50%. They will promote that 'funds are managed by a third party' and 'sufficient collateral is in place', making you feel that the funds are very safe. To make you believe, they will also find some 'investors' to share their experiences and show profit screenshots, which are actually all scams. Once you invest your money, you may receive 'interest' on time for the first few months, letting your guard down, and they might even lure you into additional investments. After the platform has attracted enough funds, the scammers will abscond with the money, leaving you with nothing.
Practical Guide to Avoid Pitfalls: Remember these 3 points, and you will never be fooled by 'capital protection high returns' scams! First, in the crypto circle, no investment is capital protected; any platform or project that advertises 'capital protection and interest' or 'guaranteed returns' is a scam. Second, if the annualized return exceeds 10%, be cautious; if it exceeds 20%, just pass on it—these projects are either scams or high-risk Ponzi schemes. Third, do not trust the promotions of 'third-party custody' or 'full collateral'; you must verify it yourself, such as checking the on-chain addresses of the collateralized assets to confirm their real existence.
Let's talk about the new regulations on stablecoin. Recently, the U.S. passed the Genius Act, establishing a federal regulatory framework for stablecoins. My view is that this is a long-term positive for stablecoins and will boost market confidence. As the 'liquidity hub' of the crypto market, the compliance of stablecoins will encourage more institutions to use them, increasing market liquidity. In the short term, compliant stablecoins will attract more capital inflows, while non-compliant stablecoins will be phased out, potentially triggering a wave of small-scale market fluctuations. For retail investors, it's essential to choose compliant stablecoins, such as USDT and USDC, and avoid using those unknown stablecoins to prevent payout risks.
Lastly, I remind everyone: greed is the root cause of being scammed. In the crypto circle, never think that 'money falls from the sky.' In 2025, the packaging of scams is becoming increasingly sophisticated, but their essence remains the same—they exploit people's greed. If you currently feel helpless or confused about trading and want to learn more about crypto-related knowledge and first-hand cutting-edge information, follow me@Square-Creator-aa01419647e18
