The Crypto euphoria which has gripped the nation, has not been borne out of FOMO alone. It’s a conflation of seized opportunities, effective marketing, financial & blockchain technology,  artificial intelligence, VALS, a power construct that chafes, and a burning desire to be rich and have a better quality of life.

The old programs with promises of high yields after a specific period and periodic repayments to keep you engaged, but zero transparency and tales of bad trades wiping out your profits, are no strangers to our shores.

Now, new and innovative platforms have taken root since COVID-19 began its havoc, offering individuals and their communities, a one stop shop of sorts, utilizing blockchain technology and e-banking and traditional payment systems, where fiat and crypto reside in the same space, complementing each other. These programs also sell dreams.

This scenario might be familiar: a friend tells you that there is a way for you to become your own boss in a matter of months while earning passive income. You are sitting up now because they explain that you can open an account using your credit card and easily buy and sell cryptocurrencies. It gets better as you’re told that you can even trade five fiat currencies. You’re offered the choice of bronze, silver or gold membership and can get a 5-tiered, benefit linked, international debit card, which you can swipe at ATMs and specific merchants. You can also become a Certified or Master Reseller (like a business owner) and the gains you make depend on the size of the community under your charge and by extension their communities.

In short, pyramid plans have been rebranded as the sophisticated “Network Marketing” and are using the modern-day El Dorado of cryptocurrencies as the bait.

You can benefit from weekly rewards, vouchers, travel discounts, concierge services, free intra-account transfers, commissions from card swipes and fees on initial set-up, monthly fixed rates on the savings in your crypto wallet, and the ability to open online shops to sell gold, silver etc.

This all sounds appealing and there’s definitely a thriving global market out there for this type of program, but be sure to tally the costs.

Do the commissions and interest earned outweigh the crypto fees, fiat currency exchange fees, account set up fees, Miner’s fees, monthly membership fees,  one-time card fees, and so forth?

The sustainability of these programs remain questionable and inexperienced investors without large, disciplined and financially healthy networks, who also cannot afford to lose much themselves, should consider focusing on more traditional types of investing such as wealth management or direct investments in entities where you can still contribute to the development of your domestic economy and a wider cross section of your community.

Traditional investments may not be as sexy but they are time-tested and can also be used to make your dreams a reality.