Invest in fintech in Vietnam – How can investors escape fintech serious troubles?

We learned from the article Fintech serious troubles in Vietnam that investors frequently fall victim to various traps.

FinFan will instruct investors on how to avoid these trap games and safeguard their cash in this article.

Firstly, never put your faith in investments with high interest rates.

Some transactions are started only with the intention of making money from investors. They create fake ghost projects and presentations about them that are very alluring to investors looking to invest money.

After a period, the project either ceased operations or failed to honor its promise to make investment payments on time.

The typical feature of these deals is that they often promise very high profits, causing investors' greed to be aroused, from which they get caught in the FOMO vortex and lose a large amount of money with the deals of these scam fintech companies.

Secondly, fraudulent initiatives frequently use cutting-edge technologies that few people in developing nations are familiar with.

Many allegedly fraudulent fintech ventures have concealed themselves as high-tech businesses, and they frequently expose users to services with incredibly high-tech features that leave them perplexed about the service.

They frequently solicit investment from investors with enticing offers and frequently boast about enticing innovations.

However, after being tested, these technologies were shown to be ineffective. When the investor finally discovered he had been duped, the startup owner had already left.

Thirdly, fraudulent fintech parties will create cryptocurrency virtual wallets to attract investors.

The creators of fraudulent fintech technologies often know how to use technology to blind investors. They often create a virtual currency or a virtual electronic wallet to collect customers’ investment.

Once collected, the features of this wallet and cryptocurrency will immediately disappear like they never existed.

The most typical case of this scam comes from the My Aladdinz cryptocurrency wallet and how much Gems has taken away from investors in 2017.

During that time, My Aladdinz hosted a number of events where they gave away cars and homes to investors who had been involved in the project from the beginning.

The trick in this situation is that the individuals who receive houses, cars, and other valuable possessions are all employees of My Aladdinz, who hired them to perform in front of other investors in order to foster a sense of trust necessary to appropriate property.

Finally, don't put all your eggs in one basket.

It's a maxim that investors use a lot when talking about investing. Investors should pause and consider their options before investing all their capital in a promising field or investment project that piques their interest.

We should divide our portfolio in the most scientific way including:

• How much of your idle funds or funds that have been assigned to you will be invested in the stock market?
• What percentage of that money will go to the real estate or bond market?
• How much of that is venture capital (especially for startups, where there is a lot of risk)?

It's extremely risky to put all your money into a startup’s project, and when those problems arise or the project doesn't progress as you had hoped, they frequently push you into the abyss.

However, not all fintech startup projects are frauds; a few were created in response to genuine consumer demand and aspiration, both domestically and abroad (such as the NEOBank and digital bank projects).

An example of these projects of is FinFan, a Neobank specializing in cross-border payment and money transfer in Vietnam, had a License of Foreign Currencies Acceptance and Payment approved by the Central Bank of Vietnam in 2014, licensing from our Strategy Bank to do Banking services, and was the first entity in Vietnam allowed to disburse money into E-wallet.

We operate based on the values of transparency and trustworthiness to provide products as a Neo-bank, such as CASH – IN & CASH –OUT (Payroll, e-Commerce, Import-Export, etc., Cross - Border Payment (Over 150 countries + currencies), Remittances (strong currencies like GBP, AUD, EUR, USD, CNY with competitive FX rate), Virtual Cards.

We are proud that we not only became the first Vietnamese non-bank partnered and integrated with Ripple Net but also partnered with over 20 top global brands as MoneyGram, Thunes, Remitly, Ria, Terrapay, PaySend, etc.