In this review we explain how the FrostLakes scam works and how it is going to lose money to people who join it.
What is FrostLakes
FrostLakes is a DeFi (decentralized finance) platform that is said to be earning money in liquidity providing and cryptocurrency trading. It runs on the Binance Smart Chain.
The offer is very simple: If you deposit BNB on the platform, you will be earning 2% daily returns. You will never get your deposit back, you will only be getting the daily returns.
And because of all the locking and other mechanisms, you will not break even after 50 days, but only after 119 days. From then on you will presumably be earning profits.
FrostLakes says its smart contract has been audited, but is it legit, can you trust it? No, you can’t, because it’s a scam.
FrostLakes scam
The truth is that FrostLakes is not doing what is saying on its official website. It is a simple scam running on modern technologies. It is sure to collapse and you don’t want to be part of that.
Useless audit
Probably the main thing that is supposed to make you trust FrostFlakes, is the audit made by George Stamp.
First of all, George Stamp is no real authority in this field, he is not recognized as somebody whose audits would make any project trustworthy.
But what is even more important, is that in his report, Stamp clearly says that FrostFlakes’ smart contract is upgradable, meaning that it can be changed any time to steal money from users!
So much for the security of the entire FrostFlakes platform, a rug pull can come any time, there are no guarantees whatsoever.
Not generating profits
The second thing you need to know is that FrostFlakes is not generating its profits in liquidity mining and crypto trading, as it is claiming on its website.
How can we be so sure about that? Because it is just impossible to generate steady daily 2% returns on investments in trading or liquidity providing. Or in any other crypto related or financial activity. That’s just the reality.
In fact, you can be absolutely certain that any offer you see promising steady daily 2% returns is a scam that you have to stay away from.
With what FrostLakes is saying on its website, you would be able to earn more than 300% per year with it, which is just ridiculous.
However, it can still be currently paying. How it is possible? Let’s close this FrostFlakes review with an explanation.
How the FrostFlakes scam works
It’s obvious that FrostFlakes is nothing more than a Ponzi scheme running on blockchain. The only thing that is really happening is that money is taken from depositors and distributed among higher-ranked members and owners of this fraudulent platform.
A typical financial pyramid that is illegal in every country of the world. By the way, FrostLakes is completely anonymous and as an investment service not authorized, therefore breaking the laws.
As with any Ponzi scheme, FrostFlakes will run out of fresh deposits and crash. Meaning it will stop paying and people will realize it’s empty, there is nothing to be withdrawn.
But fraudsters who run it won’t mind that much, because they take their cut in almost every transaction that happens on FrostFlakes. So they will make their money anyway. While ordinary users will lose.
FrostFlakes review – Conclusion
In this FrostFlakes review we have explained that this is not a DeFi trading and liquidity platform, it is just a Ponzi scam running on blockchain.
FrostFlakes is sure to crash and lose money to people, that is why you should avoid it.