Avalon Life Project Chugs Along, but Is it a Pyramid Scheme?
Popular in Germany, and spreading among crypto communities, the Avalon Life project may be hiding the risk of a pyramid scheme.
Just as the crypto markets remained shaky and saw short-term price drops, one of the coins broke away from the pack, in this case, Pura (PURA). This is not unusual in the case of coins with niche communities that are either going through a pump or are not seeing as much selling. But in the case of PURA, there are many more red flags.
The chief reason behind the rise in this asset, which is only available on niche or small exchanges, is its involvement in the complex scheme of the Avalon Life project. In a month, the price of PURA has doubled both in dollar terms and in BTC, and there are indications that the Avalon Life project has become more active, being advertised on Steemit and other social media.
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The Avalon Life project, however, raises too many red flags. Avalon Life, in short, promises high, guaranteed returns, by linking the Bitsurge project and the PURA token.
What happens is that Avalon Life sells Bitsurge investment packages – but only sells them through the PURA coin. So what we have starts to look like a Russian nesting doll of scams. PURA is at the bottom, rising in price as new users may attempt to buy Bitsurge packages. The Bitsurge packages work similar to BitConnect. And Avalon Life adds another layer of referrals and promotions.
The project has been active since May 2016, and picked up in the fall of 2017, as crypto coins came into mainstream attention. The social media presence for Avalon Life is patchy, with some YouTube promotion, and lately, a spreading of affiliate links through Steemit.
PURA Coin is a relatively old digital asset, created back in 2015, with negligible trading volumes and a rock-bottom price. The pickup for the coin came after October 2017, out of nowhere. The price growth was not organic, but fueled by the new scheme of Bitsurge to offer crypto lending.
Bitsurge used to be a paid Bitcoin faucet which required a payment to boost paybacks. It was considered a scam even then. But in 2017, the project seems to have taken up the “crypto lending” niche, which successfully hides pyramid schemes, at least for a while.
Before starting to sell investment packages, Avalon Life had another scheme, related to cloud mining. But as mining difficulty rose, or rather – as investors became aware that cloud mining would not be viable – Avalon Life switched teams.
According to Bitcointalk forum users, PURA was formerly Pura Vida coin, related to the earlier work of Avalon Life. And the two projects are linked by the same person at the helm – Tom Koller. He has been known to participate in similar MLM schemes in the past, and crypto coins are the latest iteration allowing to hide the pyramid structure.
And since scams tend to crash quickly, at the moment it is best to stay away from PURA, as the value may be lost within hours, without warning. Even with news from the coin itself, this digital asset may be considered tainted by a pyramid scheme, and as such posing a real risk for wiping out most of the value.
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