The National Bank of Georgia has warned citizens about new schemes on social media disguised as investment projects in the crypto-asset sector. Offers to quickly earn money by trading cryptocurrencies are spreading on Facebook*, but these may be classic financial pyramids. Their organizers use money from new participants to pay those who joined earlier, creating the illusion of a successful business.

As long as the influx of depositors continues, such a system can work and even provide participants with promised payouts. However, once the inflow of new money stops, the scheme loses stability and collapses. At this point, withdrawing funds becomes almost impossible: organizers may cite technical problems or demand additional payment for the return of investments. The National Bank notes that attempting to withdraw money before the collapse does not reduce the risks, as it is almost impossible to determine the stage of a pyramid's existence.

The regulator advises against trusting exclusively attractive promises of high returns and to thoroughly check a company before investing funds. In particular, it is necessary to find out if it has a real business, how solvent it is, and if it has the appropriate license. The mere presence of words like “financial,” “investment,” or “brokerage” in the name guarantees nothing. The National Bank also urged people to study not only the stories of successful investors but also cases of money loss by participants in similar projects.