Lion’s Share Review: Is It Legit or A Scam?
We’ve seen a huge increase in customers recently “investing” into Lion’s Share (visit their website here).
We always want to make sure our customers are staying safe and we want all the Kiwis out there to be making awesome gains in their crypto gardens, so we did some digging…
What we found is not good 🙁
Short story is the Lion’s Share is a total scam.
- “Smart contracts” sound fancy, but all it means is your money gets sent to someone else. It’s not locked away for you (like a term deposit), you’re simply giving your money away.
- There’s no real profit, any money you get is just being taken from your friends and family. You’d be better to just ask each of your mates for $100, and not send any money to Lion’s Share!
- They’re not operating legally.
- The guys behind this have run scams before.
How the “smart” contracts work
We read the code for the Lion’s Share smart contracts, and what it boils down to is that the money you put in gets sent to other people. It’s not really that “smart”, it’s just you giving your money away.
You won’t get back any of that money. The only way you can make money with Lion’s Share is by sucking in more people and taking their money… which is a bit stink when you stop and think about it.
At the end of the day, the “Lion’s Share” goes to the guys who started the thing and you and your friends and whanau will get left out of pocket.
Learn more: What are smart contracts and how do they work?
No real profit
Lion’s Share makes NO MONEY from trading, or any other activity. The smart contracts do not generate income.
The only way for the company to be making money is from new recruits signing up and paying money in i.e. it’s a pyramid scheme.
Related: What is a pyramid scheme?
Lion’s Share is operating illegally
On their FAQ on their website, the company says they don’t require an owner or an admin. This is extremely concerning as it means that no one has legal liability or responsibility for operating honestly, and no one can be held responsible for anything the company does with your money.
The statement about their lack of ownership is also not true, as anyone dealing with financial instruments needs to be registered as a company and also likely as a FSP here in NZ (which they are not).
For example you can find us here.
Also, pyramid schemes are illegal in NZ, so there’s that too…
Run by experienced scammers
It’s always a warning sign to us when we see projects pop up that have been run by people previously responsible for stealing funds through ponzi schemes!
Here’s more on the guy behind Lion’s Share – you can read in this article.
Conclusion: Is Lion’s Share legit or a scam?
With all that said, it now begs the question:
We reckon Lion’s Share is through and through a scam – no doubt about it. That’s our verdict.
If you’re not sure or you want to come and chat with us, just get in touch – we’re always really happy to help, and we want all our customers to be safe and wealthy.
At the end of the day, the safest way to invest in crypto is to manage your digital assets with your own wallet. After all:
"Not your keys, not your crypto."
Further reading: Read our complete guide and picks for cryptocurrency wallets.
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Last updated March 22nd, 2021.