The Origins of Mavro Coin
What is most notable about Mavro Coin is that it is related to a Mr. Sergei Mavrodi. The name may mean nothing to Western readers. But mention it to anyone Russian or Ukranian, and all of them will remind you that Mr. Mavrodi is infamous, head of the biggest pyramid scheme in the country.
The 1990's were a turbulent time after the fall of the Soviet Union. Financial predators took advantage of the situation, by selling a Ponzi scheme under the name of MMM Group. Mr. Mavrodi tried his hand at many businesses, including a stock brokerage, technological imports and even participating in the privatization of Soviet assets. But what worked, in the end, was the MMM Group, which survived as MMM Global.
So when cryptocurrencies became well-developed, it is no wonder Sergei Mavrodi took his business to the crypto space, an unexplored world of opportunities where quick earnings are not an outlandish thing. The project, Mavro Coin, is currently in the ICO stage, and is not shy about its main area of business- MLM marketing, the closest thing to a Ponzi scheme.
Watch this video to see what a scam this project looks like!
How Mavro Coin Works
Mavro Coin is a relatively old digital asset in its current iteration, but this may change soon, as the project aims to replace its coin after the ICO.
The idea behind the project is a token to “disrupt the MLM industry”. But there are several dangers that may point out the Mavro project as not simply another ICO, but a crypto scam to be avoided, sporting too many red flags.
Firstly, even before the end of the ICO, the older Mavro token is being traded on YoBit, an experimental exchange that is not shy about listing just about any digital asset it can lay hands on. The other curious thing is, the token had a very recent pump-and-dump, at rather low trading volumes.
Daily trading against the Mavro token is just 0.02 BTC. But this test drive shows what insiders could do one day, on a much larger scale. The Mavro token is extremely volatile, and just owning it may mean a market regularly riled up by pumps and dumps.
The current Mavro token will soon become defunct, as the project leaders tweeted recently. It seems the project managed to sell some old tokens, and some of them may never see an exchange. So in practice, Mavro has exited its old promises already, with no scheme to exchange the old tokens for the new ERC-20 based digital asset. This in itself has hurt investors, who bought the coin with Bitcoins, and now regret losing out on the gains.
It's interesting that Mavro staged another exit in 2012 when the Bitcoin price spiked suddenly.
#MMMBrasil #RESTART 19.12.2012 – https://t.co/nw05cP9waS
Unfortunately, we have to announce a restart for Mavros acquired using cryptocurrencies.
The reason is an unprecedented growth of the bitcoin price during last weeks.#mavro #mmmglobal #bitcoin #mavrocoin
— MAVRO (@MAVRO_COIN) December 18, 2017
Apparently, the Mavro project still managed to become Bitcoin-rich, while exchanging BTC for worthless tokens used in a MLM scheme. And with the most recent ICO, Mavro is repeating the scheme once again.
The Public Profile of Mavro Coin
At the moment, Mavro Coin masks itself as just another ICO, complete with social links. The project has been trying very hard to whitewash its past. The site claims that:
“MMM grew rapidly, providing dividends of 300%. But the government closed the offices of MMM due to the threat to the existing regime…”
Of course, there is no fooling the Russian-speaking users of social networks, who have more critical things to say of the heir of MMM. The social media of this ICO are not overly active. The Telegram channel is quite revealing: it shows the recent history of Mavro, from its launch at the beginning of 2017, but also older iterations of the scheme.
What is curious is that lately, the Mavro project promotion has switched from Russian to English, targeting an international audience.
Why Mavro Coin is a Scam
The Mavro Project openly seeks Bitcoin and Ethereum in exchange for yet another version of the Mavro asset, which has already restarted twice. It seems like Sergei Mavrodi is not shy about developing a pyramid scheme and letting it burn out soon afterwards.
In its current form, the Mavro project is starting to resemble BitConnect, a previous pyramid scheme we have reviewed. But BitConnect is at least trying some tools to curb the spreading of the pyramid and avoid a crash, at least for now. Mavro Coin may be way more reckless. The site of the MLM scheme even sports the old MMM logo, and a promise of 100% monthly returns- which would come from other members of the scheme. So the success of Mavro Coin would depend on people falling for the Ponzi scheme promises once again.
And Mavro has not been shy about being able to tokenize pyramid schemes, to avoid a crackdown from authorities. But remember, while buyers of the new token would be playing a game of virtual wealth, the pyramid's founder would acquire even more Bitcoins, despite his claims that Bitcoin is defunct and Mavro would be the new gold.
MLM businesses need not worry about payment processing any long. Mavro will be protected from regulations through a decentralized system. #cryptocurrency #blockchain #crypto #bitcoin #bitcoins #bitcointrading #blockchain #crypto #mavro pic.twitter.com/G3trPbns2J
— MAVRO (@MAVRO_COIN) December 26, 2017
And in the end, the 100,000 Ethereums sought in the ICO, as well as additional Bitcoin, would be exchanged for useless Mavro tokens.
At the moment, there are many attempts at linking cryptocurrencies with a MLM scheme, creating hype and getting easy crypto riches. But nothing is quite like the Mavro project, with its cool, professionally developed ICO site masking a hilarious history.
The current, small-scale MLM scheme of Sergei Mavrodi features a garish website with hilarious anti-capitalism screeds.
Why Best Avoid Mavro Coin
As we already mentioned, there have been two versions of the Mavro coin, but even the most careful cold storage holder has been scammed out of the mone and left with a useless digital asset.
The new token sale may be no different, and not worth investing even one Satoshi. The new MVR token promised in the works may be just an even more blatant scam than BitConnect, with a much higher probability of crashing and burning, pump and dump behavior and exchanging valuable digital assets for a worthless one.
Remember that Sergei Mavrodi has built numerous pyramid schemes over the years and let them all crash. Don't get caught in the Mavro token sale, even by accident.
For the vast majority of people looking put their dollars to work as passive income, traditional investments like a low-cost index fund is going to be the smarter choices. Even trading stocks is going to be less risky than investing in cryptocurrencies.
If you do want to get involved in the crypto world, and especially altcoins, be sure to do your homework. Know the developer, read the white paper, and invest only what you can lose. Above all, my recommendation is to avoid coins where the main value is derived from recruiting new members.
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