Quote from: nanonano on February 28, 2014, 12:29:31 PM

Quote from: shaobao88 on February 28, 2014, 10:01:54 AM

How did you get it is a scheme? As I was looking through the site and it doesn't seem to be a ponzi. I want to know how did you mentioned that as I am trying to learn such things to be more safe from any schemes

Number one method of recognising scams: calculate the yearly profit percentage from the daily figures they use to confuse. If it sounds too good to be true, then it's too good to be true.

In this case, they advertise 0.1% to 10% daily profits (this should already be a massive warning sign: if you can make an insane 10% daily profit, then you are taking extreme risks and must have days of bad losses as well. These guys claim to only have profitable days). But let's estimate based on their reported profits for the month: they claim to have made about 1.8% profit per day on average. Maybe that sounds like it's possible, but calculate a yearly profit from that first: 100* (1.018^365 - 1) = 67287%

67287% -> SCAM

By the same reasoning BTC is a doomed bubble because it went up 7000% last year.

Seriously there are problems with your reasoning.
1) If they are real and successful the yields will drop. Probably even .1% will become very high at some point.
2) Arbitrage is a real trading method used by very big money in many different markets to get safe high yields. Clearly high is something less than 67287%. Still arbitrage can work if you have the resources to pull it off.

However just because your reasoning is flawed doesn't mean it isn't a scam. Clearly caution is warranted. There are many scams in the BTC world.