Beware: HyperVerse Crypto Scams-You can Save yourself from Deception

As crypto is gaining more popularity, we are seeing new trends, risks, and opportunities alluring crypto enthusiasts. However, some of these opportunities can just as likely be scams, as is the case with Hyperverse. 

Various reports suggest that the new and innovative crypto trading platform is nothing but part of a Ponzi scheme. Join us as we dive deeper and look at the evidence and claims that label HyperVerse as the next big scam.

Also learn how to protect your digital assets against such fraudulent activities, schemes, and scams. Buckle up!

What is Hyperverse?

HyperVerse claims to be a decentralized cryptocurrency universe that is made up of millions of planets where voyagers ( players/users) can communicate, socialize, trade, and start businesses. 

The platforms allow players to leverage state-of-the-art blockchain technology and the VerseDAO framework. It also offers an exclusive cryptocurrency called the HyperVerse token. 

Here are certain features of the HyperVerse crypto platform: 

• HyperVerse offers an innovative crypto-virtual experience
• You can experience life in the HyperVerse with a clone
• You can trade tokenized items as NFT
• Enjoy your virtual life in the Hyperverse, socialize, and connect with other players
• Explore various planets and spaces in groups as galaxy wanderers
• You can trade real-world stocks, EFTs, and more.
• HyperVerse uses the Verse-DAO ( V-DAO) governance framework

However, it is important to note that several sources have raised concerns regarding the platform’s legitimacy. The platform has been declared as nothing but an elaborate Ponzi scheme waiting to trap crypto enthusiasts.

But what is a Ponzi scheme?

A Ponzi Scheme – Introduction to the HyperVerse plan 

In simple words, a Ponzi scheme is nothing but a fraudulent chain where the operators pass investments from recent investors to earlier ones. The operators generally promise high returns but never generate profits through legitimate investments. 

Source: How to spot a pyramid scheme 

All they do is take money from the recent members and pay off earlier investors to give a false sense of profit and security to keep the scam going. 

However, as time passes, people catch on and it becomes difficult to recruit more investors. That is when the operator flies away with all the investments and funds. It seems like HyperVerse is going down the same path. 

Red flags – How to spot a Ponzi scheme

Here are the basic red flags which can help you spot a Ponzi scheme:

• The scheme promises (unusually) high profits/return
• The investment strategy and business model lack transparency 
• Emphasizes a lot on recruiting new investors 
• Pressures you to invest 
• Absence of any license granted by regulatory authorities.
• Difficult to withdraw or even access funds
• And most importantly if you hear something like this:

Source: giphy

Is HyperVerse a Ponzi scheme?

HyperVerse is being labeled as a Ponzi scheme by different relevant sources and there is a lot of evidence to back this claim. It is important to note that the platform offers a return of 300% which is an immediate red flag.

Further, users have also reported that it is difficult to access/withdraw their assets or even to get any details about the project model. The founders have also been caught up in various scams and schemes before creating HyperVerse and it certainly does not add to their credit. 

HyperVerse – Is it the next big scam or not?

Here is all the evidence to support that HyperVerse is a scam:

Scamy founders: 

The founders of HyperVerse, Sam Lee and Ryan Xu, have a not-so-clean history of scams and legal actions have been taken against them. Most prominently, previous victims of the founders who were scammed via the ACX scheme filed a lawsuit of over $10 million. 

The scam-filled-trail:

To throw some light on the scheme ACX, it was launched through Blockchain Global but collapsed in early 2020. The founders then created HyperTech which led the HyperCapital Ponzi scheme. 

This scheme also collapsed by mid of 2020  and this led to Hyperfund. The most recent form of the scam is hidden behind an elaborate space video game, Hyperverse. 

Attempts at coverup: 

Many claim that the affiliates were instructed to eliminate any evidence related to HyperFund. This is not something that is practiced by any reliable cryptocurrency platform and suggests attempts to cover up and foul play. 

Source: giphy

Government-imposed bans:  

Different countries, including India,  are keeping a close eye on this particular cryptocurrency platform and are taking regulatory measures to protect users against any potential schemes or scams.

Warning by Financial Conduct Authority 

The Financial Conduct Authority (FCA) and Guernsey Financial Services Commission have issued warnings against Hyperfund and Hyoerverse for being unregistered and operating on a Multi-Level Marketing (MLM) model.

Source: quora

Restricted fund access

Users have also reported how difficult it is to access or withdraw funds. This indicates a lack of transparency by the Hyperfund platform. 

Unusually high returns

The 300% return promised seems a little too good to be true. Such high returns are generally considered a red flag by crypto experts as the figures are not possible to achieve via legitimate investment. 

Source: HyperVerseZoom 

Lack of independent trading volume: 

The token MOF (used in Hyperfund) has a market cap of $180 million whereas the 24-hour trading volume is only $40,000. This indicated that the value is only driven by internal trading as opposed to the independent participation of individuals outside Hyperverse.

Source: Reddit user

Best tips to protect yourself against HyperVerse scams

Here are some tips that can help you stay away from scams like the Hyperverse:

• Make sure you research your cryptocurrency platforms thoroughly before you invest
• Check the track record of the founders or executives
• Verify whether the platform is registered with the relevant authorities in your country
• Be aware of unrealistic fund returns and promises that are too good to be true 
• Do not hand over any personal information without verifying the sources.
• Stay away from any pyramid or Ponzi schemes that try to recruit you 
• Use a VPN to encrypt your network traffic, protect your communication channels and hide your online activity
• Stay vigilant and informed about such scams so that you can detect potential red flags

Avoid HyperVerse scams with PureVPN

To stay away and safe from scams like the HyperVerse and Hyperfund, you need to invest a little to improve your network security as well. A trusted Crypto VPN, like PureVPN, can help encrypt your internet traffic, making it challenging for scammers to access and misuse your personal information.

It helps to protect your online identity and activity from vicious scammers and reduces the risk of phishing emails, fraudulent calls, or other scams that target crypto enthusiasts. 

PureVPN also offers various other features like anonymous browsing and IP address masking, providing an additional layer of privacy and preventing unauthorized access to your accounts.

• Unlimited access to 6500+ remote servers in 70+ locations
• Bypass geographical and government-imposed restrictions and bans
• Access exclusive regional deals
• Host private gaming servers to enjoy an enhanced gaming experience 
• Enjoy improved network security with AES 256-bit encryption

Key takeaways

In conclusion, HyperVerse has quite a lot of evidence stacked against it. From user accounts to government bans, it would be difficult for HyperVerse to bounce back from this scam plot. However, it is also important for the users to be cautious and conduct thorough research when dealing with platforms like Hyperverse. 

Additionally, using a reliable VPN service like PureVPN can also help you improve your network security levels and encrypt your channels to prevent data breaches. Stay alert, make informed decisions, and safeguard your financial well-being in the cryptocurrency world!

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