The British Columbia Securities Commission is warning Canadians about new cryptocurrency “smart wallet” apps that it says share characteristics with pyramid schemes.
“There’s a pyramid aspect to it and what we mean is people are encouraged to get in and bring other people in as well and what it does is two things: It creates a stream of money into this scheme that causes us some concern, but it also creates an incentive for people to get involved because it’s another method of profit,” Muir said.
When contacted before publication, a Cloud Wallet spokesperson said they could not immediately get a lawyer to respond to the BCSC concerns. The spokesperson, however, stressed that the app isn’t a “Ponzi scheme” and went through a “strict approval process just to get listed on the Apple App Store.”We were concerned there might be some harm to the public and people might lose their money