unsure how it could be a ponzi as its 100% free
What sites like this seems to be doing, is this :
1. They create a website, where you play a game. { They create this system, where you buy virtual goods e.g. Chickens } They start you off, with the first FREE chickens.
2. If you want to upgrade or grow faster, you have to pay a FEE. {This enables bigger returns... Or that is what they want you to believe}
3. Your chickens lay eggs and you sell them to reach ROI or later a possible profit.
4. At first they pay you, when you sold your eggs {It creates a false trust relationship, to make you think that it's genuine.}
5. You think it's a paying site, so they hooked you, and you start to buy more chickens. {Invest more of your own money}
6. You also tell other people about this {Referral system} and it grows.
7. They pay for your eggs, with the investment from others.
8. At some stage the money coming in from NEW investors, does not cover the expense of paying for all the eggs.
9. They solve this, by selectively paying only for NEW players coming in.
10. They also use adverticement income on the website to pay for some of the eggs mentioned in point 9
11. At some stage, the income from the NEW players goes dry.
12. At this stage NOBODY gets paid, but the site still exist to get the income from the adverticement. {Lot's of people will still login daily to check if their payout was done}
13. Domain registration expire and the site is GONE forever.
Hope that gives you a idea, of what is done by some of these sites.
Once again, we are still investigating FarmSatoshi, to see if it's the same owner as Chickencoins or if it is the same type of concept. We will get back to you.
