Ponzi Scheme 101

[betswift]

Op this content is full of Sense of details, it seem laughable on how many fall prey to scammers though as beginner one need knowledge first but trying to make haste without knowledge has been the major causes of many falling into scam, one with this kind of content exposure hardly Fall prey even if the scammer keep on changing strategies one will still detect them avoiding quick to get rich as beginner save one from becoming a victim in my opinion and idea is to avoid anything quick to get rich and first focus on how to gather knowledge and apply smartness on any thing one is doing, and this fact that in every work there remain some bad egg should not be overruled as that serve as guide to revive one consciousness while dealing with some issue that involves money in the space mostly the strategy of getting rich fast through the system.

Nothing good comes quickly, usually, you are right. Or it was very, very risky, to say the least

[xha-256]

Made this thread way way back but this scheme is still used til this day and good refresher to anyone who is new to crypto and internet.

[Jubilee58]

Ponzi schemes are investment programs usually developed by internet fraudsters. It is aimed at defrauding people with their hard earned money. This is a very wrong method of investing because ponzi scheme have made many individual who would have been doing well financially to remain help poor , and helpless financially. I have suffered this myself, and wouldn't want anyone to engage in ponzi schemes unless you want to loose your money. Ponzi scheme comes up with fake , and enticing promises, and even some people go on to borrow money to invest in ponzi schemes. This is really a serious matter, and there should be enlightenment campaign about ponzi schemes so that people will no longer be vulnerable to it.

[AmaGold70]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick. Ponzi scheme is a trap to defraud people who would invest in them. They have their way of luring investors in, they offer huge rewards within a short period of time , and claims to be legitimate. We have had about many of these platforms that had existed, and collapsed after gathering enough money from their victims. Another thing is that some people already know they are going into ponzi schemes but they would want to try their luck saying before the platform will collapse they must have made some money, and by the he time they try, they would be traped their untill they loose their money. So it is necessary you don't venture into it at all so that you don't regret later.

[SatsPH]

Made this thread way way back but this scheme is still used til this day and good refresher to anyone who is new to crypto and internet.

I'm about to say that, but it is still very relevant.

And I did post it in our local board about someone I know that ask me if I know this x investment scheme. I said no, but the way he explained it to me, I blatantly said that it's a ponzi scheme and it's going to collapsed. He reason out that he did get his payout. And I told him that's how scammers works, they will give you the first payout so that you won't have a hint that they are going to scam you. And he said that his wife is thinking of making a huge investment, around $2k and that is big amount of money in our country. That was a Friday.

And the morning of Monday, it was already reported that the website is down already and there will multiple reports that they didn't give the payout. I was just waiting for him to come to the house again. But I doubt it as he was scammed and he didn't listen to me.

[knowngunman]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick. Ponzi scheme is a trap to defraud people who would invest in them. They have their way of luring investors in, they offer huge rewards within a short period of time , and claims to be legitimate. We have had about many of these platforms that had existed, and collapsed after gathering enough money from their victims. Another thing is that some people already know they are going into ponzi schemes but they would want to try their luck saying before the platform will collapse they must have made some money, and by the he time they try, they would be traped their untill they loose their money. So it is necessary you don't venture into it at all so that you don't regret later.

Some people are truly ignorant due to lack of knowledge, financial knowledge to be specific. They believe they are making genuine investment with genuine ROI based on how the scammers present it to them. Like you said, the other set of people are well aware of it but they still want to try it anyway thinking they'll enter early and exit before it collapses. They want to outsmart the scammers not knowing that scammers are always smart with their plan. They know how to convince you and get carried away, they know when to pull out.

[Taskford]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick. Ponzi scheme is a trap to defraud people who would invest in them. They have their way of luring investors in, they offer huge rewards within a short period of time , and claims to be legitimate. We have had about many of these platforms that had existed, and collapsed after gathering enough money from their victims. Another thing is that some people already know they are going into ponzi schemes but they would want to try their luck saying before the platform will collapse they must have made some money, and by the he time they try, they would be traped their untill they loose their money. So it is necessary you don't venture into it at all so that you don't regret later.

Some people are truly ignorant due to lack of knowledge, financial knowledge to be specific. They believe they are making genuine investment with genuine ROI based on how the scammers present it to them. Like you said, the other set of people are well aware of it but they still want to try it anyway thinking they'll enter early and exit before it collapses. They want to outsmart the scammers not knowing that scammers are always smart with their plan. They know how to convince you and get carried away, they know when to pull out.

Some people choose to be like that, since the only thing they want is to gain money from they think easy platform. Also usually those greedy people ignores warnings, that's why many of them got scams despite of numerous warnings about those ponzi platforms.

Hard to learn a lesson in hard way. That's why its good to do a research to avoid such tragic incidents.

Its good to learn from other mistake, rather than learning on ours.

[Mpamaegbu]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick.

In order words, it means they know what they're doing going into it. This is why I really don't sympathize with those caught in ponzi schemes. Most victims know what they're doing. It's their greed overcoming their sense of reasoning. A few years ago, I tried encouraging someone to invest in Bitcoin.  They boldly told me they preferred investments that rewarded instantly on a stipulated ROI. Isn't that how ponzi works?

So it is necessary you don't venture into it at all so that you don't regret later.

Sometimes, it's better for people to experience this first hand so they learn directly from that experience and get wiser. Otherwise, those interested going into it will think someone is preventing them from making a fortune.

[MorganaX]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick. Ponzi scheme is a trap to defraud people who would invest in them. They have their way of luring investors in, they offer huge rewards within a short period of time , and claims to be legitimate. We have had about many of these platforms that had existed, and collapsed after gathering enough money from their victims. Another thing is that some people already know they are going into ponzi schemes but they would want to try their luck saying before the platform will collapse they must have made some money, and by the he time they try, they would be traped their untill they loose their money. So it is necessary you don't venture into it at all so that you don't regret later.

Some people are truly ignorant due to lack of knowledge, financial knowledge to be specific. They believe they are making genuine investment with genuine ROI based on how the scammers present it to them. Like you said, the other set of people are well aware of it but they still want to try it anyway thinking they'll enter early and exit before it collapses. They want to outsmart the scammers not knowing that scammers are always smart with their plan. They know how to convince you and get carried away, they know when to pull out.

Funny thing is, I know of someone who regularly checks out different types of Ponzi schemes and decides whether to take the risk or not. He is fully aware of the risk but decides that it's worth trying, and he checks the number of days, weeks or months the scheme has been live because his goal or believe is that always be at the early stages of the Ponzi scheme and put in enough capital so you will cash out and then stop, but it doesn't always go like that with Ponzi schemes and also you still have greed to contend with, so the chances of not being scammed are very low.

[uchegod-21]

Some people who go into ponzi schemes are ignorant of the dangers associated with it, they think is a better way of making fast money and getting rich quick.

In order words, it means they know what they're doing going into it. This is why I really don't sympathize with those caught in ponzi schemes. Most victims know what they're doing. It's their greed overcoming their sense of reasoning. A few years ago, I tried encouraging someone to invest in Bitcoin.  They boldly told me they preferred investments that rewarded instantly on a stipulated ROI. Isn't that how ponzi works?

The victims always tell themselves that if they invest earlier, they will be able to make some profits and exit the scheme before the scheme shuts down. Unfortunately, these scammers don't let the public know about their plans, they can shutdown with people's money at any time. I too don't feel any pity for them. No one can say they can't spot a ponzi scheme when they see one, they know and they will always have their own plans too that mostly ends in disaster.

Funny thing is, I know of someone who regularly checks out different types of Ponzi schemes and decides whether to take the risk or not. He is fully aware of the risk but decides that it's worth trying, and he checks the number of days, weeks or months the scheme has been live because his goal or believe is that always be at the early stages of the Ponzi scheme and put in enough capital so you will cash out and then stop, but it doesn't always go like that with Ponzi schemes and also you still have greed to contend with, so the chances of not being scammed are very low.

You are telling the truth. I have been invited many times to join those schemes but I keep declining to avoid being brainwashed. I know also a few persons that treat sponzi schemes like their paid job; they are always looking forward to big sponzi scheme announcements.

[GeorgeJohn]

<..>

<..>

Funny thing is, I know of someone who regularly checks out different types of Ponzi schemes and decides whether to take the risk or not.

I only show concern to those who doesn't know a ponzi scheme and they venture into it...but anyone who is openly looking for a ponzi scheme to join, whereas he or her knows the disadvantages involved in ponzi and join, their's no need to show sympathy on the person if he eventually loses for the ponzi investment.....

Maybe some of us doesn't know that ponzi is very chancy interms of investment, so if your friend prospose to invest in ponzi ignorantly, I will encourage you to give him a better explanation of it, but if he insist to invest, after giving him the disadvantages explanation involved on it, you can let him do his mind...besides without risk taking, our chances to become successful is slim....

[tabas]

Also usually those greedy people ignores warnings, that's why many of them got scams despite of numerous warnings about those ponzi platforms.

Not only greedy people but also some informed people who are aware of the ponzis are still going on into them. And that's because they think that they're better now and they can have an exit before the ponzi finally collapses. I'd say that they think outside the box but, they can never outsmart these scammers if that's the kind of thinking they have. These people informed and less informed don't take warnings as a no, they'll continue with it until they see how terrible they are in bad decisions and shouldn't take for granted the warnings they received.

[Taskford]

Also usually those greedy people ignores warnings, that's why many of them got scams despite of numerous warnings about those ponzi platforms.

Not only greedy people but also some informed people who are aware of the ponzis are still going on into them. And that's because they think that they're better now and they can have an exit before the ponzi finally collapses. I'd say that they think outside the box but, they can never outsmart these scammers if that's the kind of thinking they have. These people informed and less informed don't take warnings as a no, they'll continue with it until they see how terrible they are in bad decisions and shouldn't take for granted the warnings they received.

They cannot really outsmart those scammers, since they always two steps ahead on other people's plan.

Those criminals already know what to do, that's why its hard to outsmart them. But there are certain indicators to identify scams and this is what we need to pay close attention. Usually their offering is quiet high and that's so shady, then to risky for us to grab.

Knowledge and self awareness is important, because with it can help us spot those programs need to avoid, then pick the best option to learn then possibly earn to.

[Comeacross]

Not only greedy people but also some informed people who are aware of the ponzis are still going on into them. And that's because they think that they're better now and they can have an exit before the ponzi finally collapses. I'd say that they think outside the box but, they can never outsmart these scammers if that's the kind of thinking they have. These people informed and less informed don't take warnings as a no, they'll continue with it until they see how terrible they are in bad decisions and shouldn't take for granted the warnings they received.

Being informed doesn't make someone less greedy. It's still greediness that pushes them into it but they're confident about themselves thinking they'd be able to exit before it collapses. You can be informed and still be the most greedy. In fact, if you are informed but still go into ponzi scheme, it means you're the most greedy because you know what you're into but still want to profit from other people's lose. If this is not greedy, I don't know what to call it. It doesn't make any difference whether you're informed or not, it is all due to greed but the difference is those not in informed are acting based on ignorance.

[satscraper]

~

Anyone who wants to stay abreast of newly identified addresses suspected of being involved in Ponzi schemes might want to land on the Investment Scams page of chainabuse.com.

Victims post relevant addresses there ^{virtually every hour, more then dozens per day},  sometimes along with URLs associated with the scams. In my view,  regularly reading these reports could help people avoid reckless investment decisions.

[tabas]

Not only greedy people but also some informed people who are aware of the ponzis are still going on into them. And that's because they think that they're better now and they can have an exit before the ponzi finally collapses. I'd say that they think outside the box but, they can never outsmart these scammers if that's the kind of thinking they have. These people informed and less informed don't take warnings as a no, they'll continue with it until they see how terrible they are in bad decisions and shouldn't take for granted the warnings they received.

They cannot really outsmart those scammers, since they always two steps ahead on other people's plan.

Those criminals already know what to do, that's why its hard to outsmart them. But there are certain indicators to identify scams and this is what we need to pay close attention. Usually their offering is quiet high and that's so shady, then to risky for us to grab.

Knowledge and self awareness is important, because with it can help us spot those programs need to avoid, then pick the best option to learn then possibly earn to.

For those who have been a victim before, they know how to identify it but due to the clever ideas that these scammers have. They're reinventing scams that probably a lot haven't seen before but, still there are some signs if a scam is already happening. Always verify if the information indicated into these offers are genuine and if the profit is too good to be true, it 's always been.

Being informed doesn't make someone less greedy. It's still greediness that pushes them into it but they're confident about themselves thinking they'd be able to exit before it collapses. You can be informed and still be the most greedy. In fact, if you are informed but still go into ponzi scheme, it means you're the most greedy because you know what you're into but still want to profit from other people's lose. If this is not greedy, I don't know what to call it. It doesn't make any difference whether you're informed or not, it is all due to greed but the difference is those not in informed are acting based on ignorance.

It's not about being greedy with those informed. But it's about the awareness that they know such scams are existing. Although it's right that it never reduces the greediness of a person. When they have fell for those too good to be true rates and profitability, despite being informed they can still become a victim of it. And it's due to their emotion why they will still trip on those scammers.

[Franctoshi]

1 percent to 30 percent return on investment that you stated above is even less compared to what I have witnessed from my point of experience with some of the promises I have seen most Ponzi schemes promise. These recent Ponzi schemes would definitely entice their victims with gigantic returns, which they usually promise as high as 50%-400% return on investment (x2-4x returns).

Where you would see the highest number of Ponzi schemes lately is within the forex community; there's a high scam going on right there that people should be aware of. Any platform that's promising 2x is automatically a red flag, and investors should avoid such platforms.

[Alonso_]

For me it’s very easy to spot a Ponzi scheme because I have previously been a victim of all this Ponzi scheme, so because of my sense of understanding for being a victim of Ponzi schemes, there is one notable thing you just have to know about Ponzi schemes, any investment were you’re told to put a certain amount of money to get a certain return and you’re not doing any task, your money is just working for you, at the end of the week or months you’re expecting to get your return is obviously a Ponzi scheme, it’s possible they don’t have any office, what they do it’s all fake, recently I heard people have been falling victim to Ponzi schemes were they’re told to perform some stupid tasks of submitting book pages, that you have to read all of them all, that was a new tactics that looks like you’re doing something to get the money, what they were doing in those task is something that doesn’t make any sense.

[Rikafip]

there is one notable thing you just have to know about Ponzi schemes, any investment were you’re told to put a certain amount of money to get a certain return and you’re not doing any task, your money is just working for you, at the end of the week or months you’re expecting to get your return is obviously a Ponzi schem

That's not entirely true.

An important factor when determining whether something is a ponzi is the promised rate of return. For example, when a bank offers you 2% yearly interest, it's (probably) not a ponzi. Also, another thing that really matters is where the returns come from, not just how high they are, and when someone offers you 50% yearly interest, that usually means interest comes from new investors and not by them lending that money and then paying you from their profit.

[fullfitlarry]

there is one notable thing you just have to know about Ponzi schemes, any investment were you’re told to put a certain amount of money to get a certain return and you’re not doing any task, your money is just working for you, at the end of the week or months you’re expecting to get your return is obviously a Ponzi schem

That's not entirely true.

An important factor when determining whether something is a ponzi is the promised rate of return. For example, when a bank offers you 2% yearly interest, it's (probably) not a ponzi. Also, another thing that really matters is where the returns come from, not just how high they are, and when someone offers you 50% yearly interest, that usually means interest comes from new investors and not by them lending that money and then paying you from their profit.

Yes, if you look at the banks and then this kind of ponzi schemes, you will really have to differentiate the returns. As I have seen a promised that from scammers that they will return a big 25% in just matter of days.

But if you compare it to a bank, that is totally different that's why you can smell from a far that if you see this huge returns, it's a pyramid style and a total scam by itself.