Ponzi Scheme 101

[Rikafip]

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

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

[Sammye3]

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.

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them. More than half of people that get into a ponzi scheme are aware because before they would get to know about that project, someone should have introduced it to them, pointing out that it is potential pomzi scheme.

People do not care about losing their money when they are promised double or triple of their earnings and that's a probelm. There would always be more ponzi schemes in the future and people would not fail to enage in it, even with full awareness. They need money that comes easy instead of investing their time and resources into something that actually counts, this is beyond ignorance for me.

[MarryWithBTC]

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

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

Like they lost their money ?

I mean it was a registered and regulated bank with security funds deposited in the central bank of the country. The victims were supposed to be partially compensated even if not absolutely. Unless that was not a registered bank or an entity the government used to scam her citizens.

I go by a rule of thumb: if something sounds too good to be true=scam.

But some people make some exceptions. If Saylor o CZ offers something that sounds too good to be true, many people will invest with scrutiny. This is the generation of influencers influencing the public to act without logic.

[Big Dirams]

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

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

From the beginning of them offering higher interest rates which is more than other banks interest rates then responsible person would have think it through and and make some research about why they wish to do that because that just give an attribute of a bank that isn’t here to stay. Anyone could have fallen for that trap but responsible person would not because why are they giving higher interest rates better than the other banks.
If it about gaining more clients then there are other ways to that instead of just increasing their interest rates, well in one way or the other they would probably milk out that money that they give for free from their clients in one way or the other, that is if they didn’t run away and wish to stay for long.
We should be careful out there in making decisions about anything free or extraordinary.

[Abdulzuruku01]

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them. More than half of people that get into a ponzi scheme are aware because before they would get to know about that project, someone should have introduced it to them, pointing out that it is potential pomzi scheme.

People do not care about losing their money when they are promised double or triple of their earnings and that's a probelm. There would always be more ponzi schemes in the future and people would not fail to enage in it, even with full awareness. They need money that comes easy instead of investing their time and resources into something that actually counts, this is beyond ignorance for me.

People know very well about Ponzi schemes, but it's their greed that causes them to get involved in them.  In fact there are some people who are even waiting for a Ponzi scheme to participate in because they see it as an opportunity to change their lives.They are fully aware that it affects people but they still foolishly put their money into it. That's why I agree with you as you said, even in the future they will still engage in it, because it's obvious that people don't want to learn how to avoid getting themselves into these scam activities. No investment that guarantees quick profits or any investment that promises to double your money instantly these are red flags.

[Antotena]

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them. More than half of people that get into a ponzi scheme are aware because before they would get to know about that project, someone should have introduced it to them, pointing out that it is potential pomzi scheme.

People do not care about losing their money when they are promised double or triple of their earnings and that's a probelm. There would always be more ponzi schemes in the future and people would not fail to enage in it, even with full awareness. They need money that comes easy instead of investing their time and resources into something that actually counts, this is beyond ignorance for me.

Greed is among but cause of greed is because some people have seen enough than they don't want. This is not to justify why people do the things the do, there is no any reason to engage but I can tell you that many people are do greedy things because they are tired of suffering. You think people that are running after meme coins don't know they are scam? They know the way it's run, they know the end before it started, they still want to give it a try.

There is a thread where someone here says his friend told him that it's easy to make money from crypto scamming people and I told him he will end up in jail one day. He was frustrated because he lost everything to scammers, these is why greed is something can't leave behind. They are consume by so much pain, like they don't have anything to lose again.

[Y3shot]

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

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

I feel the idea of a Ponzi scheme was created by banks just to attract many customers, and I have heard stories of how some groups of banks operated Ponzi schemes many years ago and absconded with the money of the people.

Some banks still operate this scheme in a way that some people still don't understand. Some banks sell shares to customers while giving them the impression of making double what they have invested, and in the end, there is no benefit for the investors. Since banks somehow collaborate with the government, no one can go after them.

[Cryptomultiplier]

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

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

I feel the idea of a Ponzi scheme was created by banks just to attract many customers, and I have heard stories of how some groups of banks operated Ponzi schemes many years ago and absconded with the money of the people.

Some banks still operate this scheme in a way that some people still don't understand. Some banks sell shares to customers while giving them the impression of making double what they have invested, and in the end, there is no benefit for the investors. Since banks somehow collaborate with the government, no one can go after them.

I can't really corroborate on that story of banks being supported by government to indulge in ponzi schemes, but it is a possibility because I still see such kind of schemes happening and when we get to know of such is mostly when it fails.

Ponzi schemes cones in different names and methods but a sharp mind would know that any get rich quick scheme is a ponzi scheme, maybe that's why those who perpetuate this only go to the illiterate people who only hear money but never really sit to think or ask reasonable questions how this is even possible.

[Die_empty]

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

We also had the same story in my country where a bank promised depositors an extraordinary interest rate. It turned out to be a scam, as almost all its customers lost money. It might be hard for major banks to scam people these days. This is because many of them are insured by the nation's deposit insurance. Depositors would always get back some amount they deposited if the bank goes bankrupt.

Greed is the most influential factor that makes people become victims of Ponzi scams.

[macson]

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.

No matter how confident they are about being able to exit, it doesn't guarantee that they can get out of the system designed by these scammers. These scammers didn't design the system without a plan; they also understand that there will be people trying to outsmart their system, and these scammers will put measures in place to prevent that from happening. This could be things like unrealistic withdrawal requirements, requirements to bring in more people, etc. In the end, people like this will only be used by scammers to bring more people to them.

[Ojima-ojo]

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.

The advanced stage of Internet scammers is ponzi scheme, that is what is known as investment scams, this comes sometimes in cryptocurrency investment that promises high returns, and even with little investigation you will discover that their don't have real products or investment to produce such high profits within the short period they promise.


Only those with greed, and tendency for quick money without working or bordering to check how those money comes in will be caught in the web of those ponzi scammers.

[Johnlomape]

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

We also had an account that promised depositors an extraordinary interest rate. It turned out to be a scam, as almost all its customers lost money. It might be hard for major banks to scam people these days. This is because many of them are insured by the nation's deposit insurance. Depositors would always get back some amount they deposited if the bank goes bankrupt.

Greed is the most influential factor that makes people become victims of Ponzi scams.

I don't think that spotting a scam project is going to be very hard for me except the team was reputable before they turn to scam.
There are so many ways to know what company is looking like a ponzi scheme especially looking at the offer they are presenting to investors on returns. When the return on investment is looking too big or unimaginable so they can get more investors or users, with this sign and other signs, we can easily now that a project offering exorbitant interest is only after scamming investors.

[yixichloro2xx]

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.

The advanced stage of Internet scammers is ponzi scheme, that is what is known as investment scams, this comes sometimes in cryptocurrency investment that promises high returns, and even with little investigation you will discover that their don't have real products or investment to produce such high profits within the short period they promise.


Only those with greed, and tendency for quick money without working or bordering to check how those money comes in will be caught in the web of those ponzi scammers.

Most of them hide behind memecoin pump and dump, whereby they will convince alot of people (E.g their communities or followers) to buy and hold. Then the scammers will sell everything and people lose their hard earned money. What makes an innocent person to become a victim is because of desperation to make money. Someone who doesn't have full Idea about Crypto currency, and saw someone posting online about a coin with 1000 percentage gain , that will some to be greedy and starting hoping, the gains that they will see from it will change their lives. There are so many ways scammers takes people money, they are mostly looking for the vulnerable ones. We just have to be careful and do research when necessary before putting your into anything you don know or ain't sure about.

[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.

No matter how confident they are about being able to exit, it doesn't guarantee that they can get out of the system designed by these scammers. These scammers didn't design the system without a plan; they also understand that there will be people trying to outsmart their system, and these scammers will put measures in place to prevent that from happening. This could be things like unrealistic withdrawal requirements, requirements to bring in more people, etc. In the end, people like this will only be used by scammers to bring more people to them.

Yep that's right, these scammers won't let a lot of them have an exit. If they think they can outsmart them, not at all times. Just like us, these scammers have also their learnings from the past that they did. Most of them have done it plenty of times, and that's why the plan is there on the table and it's all coordinated action that they'll do. And when those odd rules like asking for additional deposits just to withdraw, it's a sign that they can no longer withdraw. But due to their greediness and desire to get that remaining balance, it's too late for them to cash out.

[Issa56]

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them.

Most people that do fall for Ponzi scheme are greedy set of people. Some of them are just desperate to make quick money, that’s why they do end up falling for Ponzi scheme. People organizing all those Ponzi schemes are always brainwashing people, they do promise them high return with zero risk in the investment. Whenever you are planning to invest, and anyone tell you the investment is zero risk, and it’s high rewarding, then you should take extra time to confirm the investment, because it’s likely going to be a scam.

Some people have been scammed before by all this Ponzi scheme, but immediately they see a new Ponzi scheme, they going to jump into it again, they going to forget about the amount which they lost in the previous one.

[Ojima-ojo]

Like they lost their money ?

I mean it was a registered and regulated bank with security funds deposited in the central bank of the country. The victims were supposed to be partially compensated even if not absolutely. Unless that was not a registered bank or an entity the government used to scam her citizens.

In the 90s Central Bank where either negligence of their role as financial sector police, there by allowing some banks to close down with a lot of investors money, we have a case way back of an international player in my country who's almost life time football funds where wired back to a home bank account, but when the bank closed down he couldn't find even kobo or where to trace his money, it took the intervention of the then president to help the young national football legends get some of his money but not full, those kinds of incident prompted the central Bank to introduce, banks capital deposits and some other operational securities to help in case of bankruptcy.

[Rikafip]

I mean it was a registered and regulated bank with security funds deposited in the central bank of the country. The victims were supposed to be partially compensated even if not absolutely. Unless that was not a registered bank or an entity the government used to scam her citizens.

Iirc, back in those days only up to ~13k euro was insured, so tough luck if you had more than that. Situation now in EU is better as up to 100k euro is insured (at least on paper, I wouldn't like having to find out that for real).

[Yablee0]

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.

Ponzi scheme has caused a whole lot of damages in recent time. However, it's a scheme that is been designed to defraud people of their hard earned money and I have once been a victim of it in the year 2016. That year was like a nightmare to me, I lost more than half a million, money that I was supposed to use for an important project but a friend of mine lured me into it and at the end of the day everything gone. Even the platform was down even till date.

That thought me the biggest lesson of life and as of today nobody can tell me anything about ponzi scheme that I wouldn't look you twice. They say a first fool is not a fool but a eye opener, but when it repeated itself is when it becomes a problem. However, we shouldn't let out greed make us regret our actions because once the deal is done, it can't be reversed.

[Die_empty]

I don't think that spotting a scam project is going to be very hard for me except the team was reputable before they turn to scam.
There are so many ways to know what company is looking like a ponzi scheme especially looking at the offer they are presenting to investors on returns. When the return on investment is looking too big or unimaginable so they can get more investors or users, with this sign and other signs, we can easily now that a project offering exorbitant interest is only after scamming investors.

Scammers are becoming sophisticated these days. They come up with different strategies, like cloning the platforms of reputable companies to carry out their criminal activities. Like I said before, the cheap victims are people who are desperate to make quick and high profits. Taking more time to investigate an investment is essential to determine the genuineness of a project. Those who don't have time to do research before investing would have it when they begin to seek for means to recover lost funds.  

[Itz-prisigold]

People know very well about Ponzi schemes, but it's their greed that causes them to get involved in them.  In fact there are some people who are even waiting for a Ponzi scheme to participate in because they see it as an opportunity to change their lives.They are fully aware that it affects people but they still foolishly put their money into it. That's why I agree with you as you said, even in the future they will still engage in it, because it's obvious that people don't want to learn how to avoid getting themselves into these scam activities. No investment that guarantees quick profits or any investment that promises to double your money instantly these are red flags.

See sometimes it’s not even about a person being greedy. Some of these people do know about the possibility of losing their money, and they may have seen a lot of red flags but still think that they may have a good chance of getting their money out before the scheme fails. Even currently now I have a friend that have been victim of Ponzi scheme twice and when I tried talking to him about it, he’s telling me that life is all about risk and one day he’ll be lucky.

This type of individuals think too much about the chance of being among the lucky ones, and forget about the money they are losing. This way of thinking can cause them to make the same mistake again even if they have had a bad experience.