GGT, A Crypto Ponzi Scheme Went Bust in China
GGT, a crypto Ponzi scheme went bust in China after converting USDT assets deposited in its crypto wallet ‘G-Wallet’ to GGT without being approved by investors.
GGT’s price in the secondary market has long been unsatisfactory before it went bust. After the “mandatory exchange” incident, GGT had a historic lowest price of 0.0005 USDT in the secondary market, which was 96.8% lower than the open price of 0.016 USDT in late June.
GGT is a digital currency issued by Goldlinks, a blockchain project in China. Its white paper shows that the goal of the project is to build a digital gold system based on blockchain. Goldlinks officially issued two kinds of digital currencies. The first named GGC, claimed itself as a stable coin pegged to the price of physical gold backed by 100% physical gold reserves. The other is GGT, which is officially said to have “appreciation potential” for its price is affected by “Goldlinks ecology”.
Goldlinks has long been an nameless project because of its uncertain prospects and limited technological competence. But in June this year, gained attention after launching G-Wallet, a financial crypto wallet. Investors can deposit USDT and earn interest in G-Wallet. Interest is paid in the form of GGT with different interest rates depending on the timing of the investor’s deposit. If deposited for 180 days, investors can get the highest daily interest rate – 1.2%, with an annual return of 438%.
Unlike traditional blockchain project, GGT almost abandoned the traditional mode of meetup, roadshow, media exposure for propaganda. It cooperate with many crypto communities to distribute GGT bonus to attract investors.
Goldlink’s CEO attended a business activity
GGT project invited three crypto celebrities to design a set of fund scam model. But the three crypto celebrities are only `outsourcers‘ responsible for model design. Subsequently operation is run by GGT project. After going bust, G-Wallet chose to dissolve the official community directly, and blacklisted all investors.
Last month, a similar crypto ponzi scheme “TRX·μTorrent Super Community”went bust in China, victims lost at least 200 million CNY, one family even killed themselves as they borrowed heavily to take part in the scheme. Now the crypto ponzi scheme in China frequently emerges as crypto bull market runs.