USI Tech has made some big promises, and investor interest in the past was piqued. Now though, those big promises are starting to look too good to be true. Investors have been unable to withdraw funds for a couple of months now, and USI Tech isn’t coming up with good reasons. Is it the beginning of the end for a sophisticated scam, or just a hiccup in a growing company’s development?
USI Tech promises big
The old adage goes; if it sounds too good to be true, it probably is, and crypto investors have learned this the hard way numerous times. USI Tech has always seemed a bit dodgy; the program made appealing promises and sought to grab market share from all types of investors. The company made claims such as daily growing portfolios, seamless withdrawals, and large referral commissions. If this were the way that money worked, we’d all be rolling in cash. The savvy investors looked a little closer before they backed, but some saw the sparkly and went for it.
To be specific, USI Tech promised users a 35% referral kickback on a 12-tier program. Already, this sounds troubling: 12 tiers? Investment companies sure do give referral commissions, but 35%? In someone’s wildest dreams, perhaps. Also, USI claims that an investor will profit every day, regardless of what the market is doing. Then, whoever referred that investor will make money from the referral. Where is all this money coming from? Self-generation, maybe? The offerings bring up a number of questions, and there have never been solid answers.
Broken promises
Most important to recent events, USI said that users can withdraw funds every day; this is where the first downfall has become painfully apparent to USI Tech investors. Funds have not been available for withdrawal since January. According to customer service claims, withdrawal systems are currently not functioning and the company is having issues with liquid capital, or the company has some legal issues which have frozen their ability to return investor capital. So far, no one is buying these excuses.
This is not the first time they have encountered problems; Canada filed a cease and desist order against the company back in February, following suit from Texas who issued the same in December 2017. The orders were issued in relation to their securities, which appeared to be unregistered, and may have been distributed without a prospectus.
USI Tech looks increasingly suspicious in relation to their ‘investment package’ offering found on their website. Most people who have been watching cryptos come and go are hip to the fact that these kinds of packages are almost always fishy, and should be avoided at all costs. OneCoin is the best-known example, and BitConnect is following in their shoes.
The gamble is always there
Of course, there is always the off-chance that USI Tech is just having temporary difficulties, and that their pie in the sky claims are possible and true. Let’s see what they do. They so far have not said much about correcting these issues, and are losing investor trust and confidence by the day.
At the end of the day, all of these investments are essentially a gamble. Without real regulation, the crypto game is a high-stake, lawless, but potentially high-reward proposition. Not everyone wins at Blackjack, and not everyone will win the crypto gamble either. While we wait for the USI Tech explanation to come out, remember, it’s all chance these days.
