TreasureNFT Pyramid Scheme Allegations: Is TreasureFun a Scam?

Welcome, crypto explorers! If you’ve been hearing whispers about TreasureNFT and its offshoot TreasureFun, you’re not alone. The crypto world is buzzing with questions: Are these platforms the next big thing or just another mirage in the desert of digital dreams?

Let’s dig deep, separate fact from fiction, and help you make informed choices about your crypto journey.

READ ALSO: How NFT Treasure Works: A Quick but Complete Guide

Understanding TreasureNFT and TreasureFun: What Are They?

TreasureNFT burst onto the scene promising something irresistible: high daily returns and a new way to profit from NFTs using artificial intelligence. The platform claimed users could earn daily returns between 4.3% and 6.8%, and up to 30% monthly returns that would make even seasoned traders raise an eyebrow.

TreasureFun, a related initiative, followed suit with similar promises and the launch of the TUFT token.

But here’s where things get murky. Instead of focusing on NFT trading, TreasureNFT’s core business model revolves around referrals. Users are encouraged to recruit others, earning commissions not from trading NFTs but from bringing new people into the fold. 

This structure closely mirrors a classic pyramid or Ponzi scheme, where the money from new participants is used to pay earlier investors. When the flow of recruits slows down, the whole system risks collapsing, leaving latecomers with empty pockets.

Adding to the concerns are questionable registration details. Investigations revealed that TreasureNFT’s listed address in Tempe, Arizona, actually points to a Russian music academy, and the supposed team members on LinkedIn appear to be fabricated.

These red flags have prompted authorities in India, West Bengal, and other regions to launch fraud investigations.

Allegations, User Experiences, and the Pyramid Scheme Pattern

Let’s talk about what users are experiencing. As the platform grew, reports of withdrawal issues started to surface. Initially, some early adopters received payouts, which built trust and encouraged others to join. But as time went on, many users found their withdrawal requests delayed, rejected, or their accounts outright frozen.

Some were asked to jump through hoops- filling out forms, paying extra fees, or resubmitting transaction details- only to be denied access to their funds.

This selective withdrawal pattern is a telltale sign of a pyramid scheme. Early users and those who bring in recruits may get paid, while others are left in limbo as the platform struggles to maintain enough new deposits to cover withdrawals.

The lack of a real product or NFT trading activity, combined with the reliance on a referral system, further reinforces the pyramid scheme allegations.

TreasureNFT’s official response to the withdrawal delays? They cite “financial system adjustments” and compliance checks, assuring users that funds are safe and will be released soon.

However, these explanations have done little to calm investor fears, especially as more stories of blocked accounts and unresponsive customer support emerge.

Expert Warnings and What Investors Should Do Next

Financial experts and crypto analysts are sounding the alarm. The consensus is clear: Any platform promising guaranteed, outsized returns-especially through referrals rather than real trading or products-should be approached with extreme caution.

The mathematics simply don’t add up. In legitimate NFT markets, prices fluctuate wildly, and no one can guarantee consistent high profits without a constant influx of new money.

Regulators have also taken notice, with ongoing investigations and warnings issued in multiple countries.

The advice from the crypto community is unanimous: steer clear of platforms that rely on multi-level marketing or pyramid structures, and always verify the legitimacy of any crypto project before investing your hard-earned money.

If you’re looking for a safe and reliable place to trade or learn more about crypto, consider using established exchanges like Bitrue. Bitrue offers a secure environment for trading over 700 cryptocurrencies, with transparent fees and robust security measures. You can also stay updated with the latest crypto news and insights on the Bitrue Blog.

READ ALSO: Bitrue’s latest blog on Cat Coin

Conclusion

The evidence is overwhelming: TreasureNFT and TreasureFun exhibit all the classic signs of a pyramid scheme. From unrealistic profit promises and a referral-driven revenue model to withdrawal issues and fabricated company details, the risks far outweigh any potential rewards. Remember, in the world of crypto, if something sounds too good to be true, it probably is.

Stay safe, do your research, and trade only on reputable platforms. For a trustworthy trading experience, check out Bitrue Exchange, and keep yourself informed with the latest updates on the Bitrue Blog.

FAQs

1. Is TreasureNFT a legitimate NFT trading platform?

No, TreasureNFT operates primarily through a referral system rather than real NFT trading, which is a hallmark of pyramid schemes.

2. Why are users unable to withdraw funds from TreasureNFT?

Many users report delayed or blocked withdrawals, a common tactic in Ponzi schemes to prevent large-scale exits when new deposits slow down.

3. What should I do if I want to invest in NFTs or crypto safely?

Use established exchanges like Bitrue for trading, and always research platforms thoroughly before investing. Stay updated with reliable crypto news on the Bitrue Blog.