My friend Daniel, a smart guy with a stable job, fell victim to a so-called investment opportunity called GlobeInvest Token (GIT) that turned out to be a disguised pyramid scheme. It started through a mutual friend who had already invested and received payouts, convincing Daniel that this was a real opportunity.

GlobeInvest Token claimed to operate a decentralized finance ecosystem where users could earn high daily returns by staking their tokens. But the real catch was in their referral system—every new member brought in had to purchase a minimum token package, and referrers would get a cut of every new sign-up. It felt like a modern crypto version of multi-level marketing.

Daniel put in $2,500 and quickly got two friends to join. At first, everything looked promising—his dashboard reflected daily earnings, and small withdrawals were processed quickly. However, as he invested more and encouraged more people to join, the red flags started appearing. The website began showing errors, and withdrawal delays became common. Customer support started sending generic responses, and their Telegram group went silent.

Then, within a week, everything disappeared. The site was taken down, the token price crashed to nearly zero, and the people behind it vanished. Daniel was devastated—not only had he lost money, but he felt responsible for the losses his friends suffered too.

This case is a strong reminder that crypto pyramid schemes are evolving. If any crypto project pushes recruitment harder than real product utility, that’s a red flag. Real investments don’t depend on how many people you can bring in. Daniel’s experience is a warning I hope others learn from.