Many Pakistanis who invested in the TreasureNFT app are now raising concerns over their ability to withdraw funds from the platform. The app, which initially attracted users with promises of high returns on NFT purchases, has extended its withdrawal period, citing an ongoing audit as the reason.
However, this delay has caused significant worry among investors, who are now unable to access their money.
The process on the app was straightforward: deposit money, buy an NFT, wait for its value to increase, and then sell it for double the profit. But now, with the withdrawal delays, many fear their investments may be lost.
Users claim to have withdrawn profits ranging from $1,000 to $1,500, though the legitimacy of these claims remains unclear. Some suspect that fake accounts were created to promote TreasureNFT and lure people into the scheme.
Disgruntled users have taken to social media, labelling the platform a scam and calling for the ban of influencers and YouTubers who promoted the app. Many claim they have lost their money, particularly those from less privileged backgrounds, and are demanding action against those involved in endorsing the platform.
There are also speculations that this could be a strategic move by the platform, as the company has not officially announced its exit. Some believe this tactic might be designed to create panic, encouraging users to sell their NFTs at a loss.
NFTs often do not offer real ownership rights, and scammers are exploiting this, especially in regions like Pakistan and India, where awareness of digital assets is limited. Experts suggest that people have been drawn into this scheme by promises that sounded “too good to be true,” without thoroughly researching the platform before investing.
TreasureNFT had promoted itself as a platform offering AI-driven NFT trading with substantial returns. However, experts have flagged several red flags, likening the platform’s model to a Ponzi scheme.
Initially, the platform promised daily returns between 4.3 per cent and 6.8 per cent, with monthly profits of up to 30 per cent. But as more details emerged, concerns about the sustainability of such high returns grew.
The platform’s referral-based model also raised suspicions, as it appeared that the profits of earlier investors were funded by the investments of new participants. This hallmark of a Ponzi scheme created an illusion of profitability but risks financial collapse when new investments slow down.
Further investigations into TreasureNFT revealed troubling inconsistencies. Despite claiming to be registered in Tempe, Arizona, the listed address points to a Russian music academy, casting doubt on the platform’s legitimacy. Additionally, the company’s LinkedIn profiles were found to be fabricated, with no verifiable information about its founders or operational team.
Experts have raised alarms about the unrealistic nature of the promised returns, noting that legitimate NFT markets do not offer guaranteed profits at the levels claimed by TreasureNFT. The model can only survive as long as new users continue to join, and once that stream dries up, the system is likely to collapse, leaving users with significant losses.
Users have also reported issues with withdrawing funds, with accounts being frozen and withdrawal requests either delayed or denied. Customer support has been largely unresponsive, further fuelling fears that the platform may be fraudulent.
The referral-based structure of TreasureNFT suggests that the company relies more on recruiting new users than on actual NFT transactions to generate revenue, reinforcing concerns that it is operating a pyramid-like scheme. Additionally, fabricated testimonials from new accounts have been used to post positive reviews, misleading potential investors.
Though the company claims to hold a Money Services Business license from FinCEN, there is little evidence to support this, and regulatory authorities in India are reportedly investigating the platform for potential fraud.
As doubts about TreasureNFT grow, financial experts are urging investors to be cautious. They advise conducting independent research before investing, avoiding platforms that guarantee high returns, and steering clear of those reliant on referral-based models for income generation.
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