Since I was 14, I’ve been on a mission to make money online. Back then, it was much tougher—without today’s cutting-edge tools, platforms, and endless educational content, the landscape was far more challenging. Fast forward to now, and the digital money-making world has never been more accessible. With AI, cryptocurrency, WordPress, and YouTube tutorials at your fingertips, opportunities seem limitless.
However, some of the most profitable methods from back in the day—like affiliate marketing and Google AdSense—are still thriving. And one crucial skill remains just as relevant: the ability to spot scams, Ponzi schemes, and “too good to be true” opportunities.
THE LESSON OF AXIE INFINITY: A PYRAMID SCHEME IN DISGUISE
I’ll never forget when I warned people about Axie Infinity and its pyramid-like structure, only to be dismissed as someone “missing out” on a golden opportunity. A few months later, the entire system imploded. The lesson? If you can recognize the red flags early, you can avoid falling for similar traps.
In this post, I’ll break down the key signs that an online money-making opportunity is a scam—and how to protect yourself from financial disaster.
NO REAL ADOPTION OR VALUE CREATION
Before jumping into any online money-making venture, ask yourself: Who am I creating value for?
Take Axie Infinity as an example. At one point, a significant percentage of the population in the Philippines and Venezuela relied on playing the game for income. But here’s the problem: almost no one played for fun—they played to make money. That’s where things went wrong.
Axie Infinity’s economy had two main players:
- Farmers: Bought Axies to earn and sell Smooth Love Potion (SLP).
- Breeders: Bred Axies to sell to farmers.
But here’s the catch: farmers sold to breeders, and breeders sold to farmers. Money circulated in a closed loop without generating any real value. The system relied entirely on an influx of new players to sustain itself—a textbook pyramid scheme.
As soon as new players stopped joining, the whole structure collapsed.
If a system depends entirely on newcomers buying in to sustain profits, it’s not a real business—it’s a time bomb.
WATCH FOR DESPERATE MEASURES TO KEEP THE SYSTEM ALIVE
When a platform starts scrambling to stay afloat, that’s your cue to get out.
Axie Infinity’s downfall was full of warning signs:
- Slashing rewards: The daily SLP rewards for Adventure mode were abruptly cut.
- Rule changes: Developers kept tweaking mechanics to slow the bleeding.
- Inflation of assets: The market was flooded with Axies, causing their value to plummet.
We’ve seen similar desperation in other cases:
- Plant vs Undead collapsed after constant economy adjustments.
- Staking platforms like Celsius, Terra, and FTX crumbled when they couldn’t sustain promised returns.
- PancakeSwap restructured its staking model, and its token value is plummeting.
- Nexo recently introduced a $5,000 minimum deposit requirement to earn rewards. They claim this change is meant to focus on providing better service to their most loyal customers, but such drastic shifts should always raise a red flag.
If a platform constantly changes rules to “fix” its economy, it’s on its last legs. Pay close attention to such moves, as they often signal underlying issues.
TO SUM UP
Scams and Ponzi schemes will always evolve, but the warning signs remain the same:
- No real value creation
- A constant need for new investors
- Desperate last-ditch efforts to stay afloat
By recognizing these red flags, you can avoid financial disasters and focus on sustainable, legitimate ways to make money online. Stay informed, stay skeptical, and always do your due diligence before investing in any opportunity.
NEVER INVEST MORE THAN YOU’RE WILLING TO LOSE
If, despite all the red flags, you still want to take the risk and try for a quick hit-and-run profit, you need to approach it with extreme caution. Many people are drawn to these schemes hoping to cash out before they collapse, but timing it right is nearly impossible. Even if you think you can ride the wave for a short-term gain, you should always have an exit strategy and be prepared for the worst.
A golden rule for any online money-making venture: never invest more than you’re prepared to lose.
If you’re engaging with high-risk platforms, treat it like gambling. Don’t bet your savings on a system that could vanish overnight.
Speculative platforms like Axie Infinity can seem like easy money, but they come with extreme risk. Sure, some people make money, but only those who exit early—before the inevitable crash..