We all know that bitcoin price is surging through the roof to reach as high as $500 but what is driving it? If we go by the recently report published by the Business Insider and Financial Times, bitcoin price rise has been driven by one of the guys who is an expert in executing Ponzi schemes. The publishing outlets state that Sergei Mavrodi who has been operating a website MMM is responsible for the rise in bitcoin price.
The website, MMM is proclaiming itself to be a Chinese social financial network and offers various options for the investors to buy into bitcoin and multiple other trading accounts. Like any multi-level marketing product, even MMM offers bonuses for investors who join the platform and they get additional bonus every time they get new people to join the platform. The whole setup clearly gives away the making of a Ponzi scheme. Still there are people who are actively joining MMM.
Sergei Mavrodi also has a set of detailed videos on YouTube and other channels. The report also points out that the users of MMM platform have shared video testimonials describing how much money they made for themselves while being part of MMM. The emergence and growth of MMM has driven the bitcoin trading volumes. Recently Huobi, the leading bitcoin exchange recorded the highest number of bitcoin transactions in the history.
While it is still not clear as to how much of the price rise is really attributed to MMM, there are speculations that the platform is responsible for a considerable increase in trading activity and price rise. Attempts by publications to connect with Mavrodi for a statement hasn’t been successful so far.
Even with the past history of Ponzi schemes in his credit and the platform exhibiting certain tell-tale signs of a Ponzi scheme we would at this point urge the bitcoin community to exercise caution while investing in it while restraining ourselves from making an outright claims of a big scam in the making.