There have been some suspicions raised about CQT Coin, also known as Covalent, being involved in illegal pyramid schemes. Pyramid schemes are a form of fraud where participants are promised high returns for recruiting others into the scheme, rather than from legitimate business activities.

One red flag that has been raised about CQT Coin is the focus on recruiting new members to buy into the cryptocurrency, rather than on the actual value or utility of the coin itself. This is a common tactic used in pyramid schemes, where the primary source of income comes from new recruits rather than from the sale of a legitimate product or service.

Additionally, there have been reports of CQT Coin promising high returns on investment without any clear explanation of how these returns will be generated. This is another common characteristic of pyramid schemes, where participants are promised unrealistic profits with little to no explanation of how these profits will be achieved.

It is important for investors to be cautious when considering investing in any cryptocurrency, especially those that show signs of being involved in illegal activities such as pyramid schemes. It is always recommended to do thorough research and due diligence before investing in any cryptocurrency to protect oneself from potential scams and fraud.