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the first scam discovered from 2021



New Years, the same old scams: we talk about TronChain, the ponzi scheme launched in July on the Tron blockchain and whose culmination occurred in these first days of 2021.

The operation was based on the classic principles of a pyramid scheme: promising everyone an exaggerated profit, driven by new subscriptions that in turn were attracted by the positive testimonials of the first lucky ones to enter the mechanism.

In this case, the subscriber was guaranteed a 310% income on the amounts invested, with a credit ratio equal to 1% per day for which, in theory, after 100 days each would have recovered their own invested capital. Up to this point, nothing exaggerated or unsustainable, but it was the bypass mechanism the one that accelerated the collapse of the structure: in fact, percentages of 30% were foreseen for those who brought new subscribers, with additional percentages of 10% and 8% at the 15th degree of connection. On the other hand, this is the rule of every Ponzi scheme: each subscriber is obliged to convince the others, because by doing so he accelerates the return of their sums and passes the baton to the next unfortunate.

Obviously, it was necessary to improve and try to propose itself as something different, so the team had inserted some gadgets that were supposed to protect the "investors" from the loss of funds contributed, and that obviously – spoiler alert – did not do the trick .

One of them had been called "insurance”Which was a fund where fractions of new deposits were accumulated and were supposed to be drawn to allow new subscribers to receive at least 100% of what they invested. When it was necessary to use it, it lasted a few seconds, just like in the ICO days of 2017.

Another mechanism had been taken directly from the DeFi world, the serious one, and consisted of the extraction of liquidity by obtaining governance tokens (UME) and then financial tokens copied from Yearn Finance (EFT). All as part of a hypothetical ecosystem that would include a DEX and other applications ranging from games to fintech (we do not provide links or references intentionally).

How did the TronChain scam develop?

When a Ponzi scheme begins to fail to gather subscribers, the downward spiral becomes irreversible and ruthless: new funds run out, word spreads (in real time, as the smart contract is visible on the blockchain), and nobody enters, and the pyramid crumbles.

At this point, the team tried to stop the disappearance, trying to block withdrawals at least for those who had already reached the point of equilibrium and even inviting them to make voluntary donations to “support the ecosystem, the ideals of the project, etc. But underestimating the greed inherent in human nature: the withdrawal lock, activated only in the TronChain web interface, was immediately ignored and those who had been blocked were able to withdraw directly from the smart contract, emptying it.

Now the narrative focuses on the promises of reintegration, which would be entrusted to the creating a new chain without the errors (?) Of the previous one, and whose collection should serve in part to reimburse the scammed. Be careful.


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