Referral programs can seem like a great way to earn extra crypto, but they can also be used as a front for pyramid schemes. I learned this the hard way when I joined a referral program that promised rewards for every person I brought into their platform.

The program seemed straightforward. For every new user I referred, I would earn a percentage of their deposit, and they would also receive a bonus. The platform had professional marketing materials and even hosted webinars explaining how the system worked. It seemed legitimate, and I quickly referred several friends, earning small rewards as they deposited funds.

But as time went on, things started to fall apart. The platform stopped processing withdrawals, and the support team became unresponsive. When I researched further, I found out that the platform was a Ponzi scheme, using new deposits to pay old users. By the time I realized this, the platform had disappeared, and both I and the friends I referred had lost our money.

This experience taught me to approach referral programs with caution. If the rewards seem overly generous or depend on constantly recruiting new members, it’s likely unsustainable. Always research a platform thoroughly before involving yourself or others.