Treasure NFT: Ponzi Scheme Disguised As Referral Program
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By Hamza Ahmed profile image Hamza Ahmed
4 min read

Treasure NFT: Pyramid Scam Masquerading As Referral

Treasure NFT shows clear signs of a Ponzi scheme disguised as a referral system, with blocked users and unverifiable founders.

Treasure NFT, a platform that uses artificial intelligence to promote NFT trading as a source of high returns in cryptocurrencies, is now facing numerous accusations of operating as a Ponzi scheme.

Treasure NFT has targeted financially vulnerable populations in the tribal regions of Pakistan, as well as in Balochistan and Sindh, offering investors daily returns of between 4.3% and 6.8% and monthly profits of up to 30%. Expert testimony and user experiences reveal an unsustainable operation that threatens to cause severe financial losses.

Treasure NFT Explained in Brief

Treasure NFT's operating model is mainly based on a referral system, which is the central element of concern. A Ponz schemei is identified by its strategy of distributing the deposits of new participants to previous investors, thus simulating profitable returns. The financial community has repeatedly emphasised that legitimate NFT markets cannot offer guaranteed high returns without a steady inflow of new investments. The whole structure is bound to collapse when this flow of money starts to diminish.

Treasure NFT withdrawals frozen, investors concerned | The Express Tribune
Treasure NFT cites financial system adjustments for the withdrawal delay, ensuring compliance and user fund security.

Suspicions are growing as questions emerge about the registration information and personnel associated with the platform. An investigation revealed that Treasure NFT's registered address in Tempe, Arizona, corresponds to a Russian music academy, calling into question the honesty and transparency of the platform. Further investigation found that the LinkedIn profiles claiming to represent members of the company's staff are fake, as there is no verifiable data on the founders or operations team.

Treasure NFT | LinkedIn
Treasure NFT | 3,756 followers on LinkedIn. A web3 profit platform based on NFT collections. | TreasureNFT is the world's first comprehensive NFT trading platform based on algorithmic trading through an innovative algorithmic trading model, using automatic algorithmic quotes, automatic maintenance of liquidity, pioneering the industry, unlike the traditional NFT trading platform quote model, vulnerable to market sentiment interference, as well as irrational investment factors driven by NFT asset prices fluctuating significantly, once the market heat NFT assets experience a lack of liquidity, TreasureNFT with an innovative algorithmic price trading model, for each NFT assets are given liquidity.

Numerous users have reported problems accessing their funds, raising alarm bells. Several report that their accounts have been blocked without explanation, while withdrawal requests suffer significant delays or are rejected altogether. The inability to contact customer service at Treasure NFT has increased investor distrust, reinforcing allegations of scamming against the platform.

The platform operates primarily through a referral system that emphasises the recruitment of new members rather than actual NFT trading, indicating a pyramid-like corporate structure rather than a legitimate operation. Treasure NFT also appears to use false testimonials from newly created accounts to generate positive reviews as a deliberate strategy to deceive potential investors.

Treasure NFT claims to hold a Money Services Business licence issued by the FinCEN, but there is little evidence to prove their compliance with legal standards. According to various reports, Treasure NFT is under investigation by regulators in India and West Bengal for alleged fraudulent activities.

FinCEN.gov
United States Department of the Treasury

Financial experts warn potential investors to conduct thorough independent research and to act with extreme caution when evaluating platforms that promise guaranteed high returns, due to growing evidence of fraudulent activity.

The experts advise avoiding business models that generate revenue primarily through referral programmes and warn against investments that appear overly profitable. The case of Treasure NFT demonstrates the dangers of unregulated crypto platforms and emphasises the importance of careful analysis when investing in digital assets.

By Hamza Ahmed profile image Hamza Ahmed
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