Ponzi Scheme 101

[Big Dirams]

Sometimes no matter how they know or they are already been expose to that scam and still try to join another scam project or scheme, they already knew it was a scam, the thing that comes to their mind is they are early like what i have seen to some people, you told them it was a scam, they acknowledge it, but still put some money, because they are early and can get out.
Just like you said greed will let this people forget what happen earlier they will be blinded by earnings and percentage that has been promise because they are chasing money.

They always feel like if they go in early then they can secure their gains as quick as they can and leave before the scamming scenarios start happening but they don’t know that it not all projects we see that we just walk into and think of leaving early without any risk attach to it. For some peoples opinions that keep rumbling about from one ponzi project to another, some projects now are even here for the early people to take advantage of them and even if they don’t make enough gains from the early investors they don’t get greedy. Some projects just want the early investors and take advantage of and that all they are gone so we need to be careful out there and take our researching more seriously.

[Mpamaegbu]

Imagine investing $200 and you are promised to receive $200 weekly. Is that not too good to be true? But imagine investing $200, and you were promised $10 weekly under standard settings and registration. You should know that one will likely be genuine than the other.

I got your drift there. However, even the little weekly reward on investment as captured by your example doesn't still absolve it from not being a Ponzi scheme. For me, any investment that guarantees a certain amount of reward is fishy by my judgment. I know that market profitability and loss aren't static. They do change with subject to the reality of demand and supply. So, how can a human who isn't clairvoyant tell you what to expect in future? I rather go for an investment plan that's based on percentage sharing formula of profit made on a daily/weekly/monthly than one fixed on fiat. Investment doesn't work that way. Again, anyone investing in something should endeavour to find out what that something is really into and not just the mere mouthing that it's an investment platform. People should be wiser in this era of information. Research is just a click away on the keyboard.

[EarnOnVictor]

Imagine investing $200 and you are promised to receive $200 weekly. Is that not too good to be true? But imagine investing $200, and you were promised $10 weekly under standard settings and registration. You should know that one will likely be genuine than the other.

I got your drift there. However, even the little weekly reward on investment as captured by your example doesn't still absolve it from not being a Ponzi scheme.

This is not about small income promised totally exonerated them from being a Ponzi scheme, but the fact that one looks too obvious than the other, and one can be better sustained than the other. And any Ponzi scheme advertising $200 to be getting $10 weekly should be ready for a very low patronage.

For me, any investment that guarantees a certain amount of reward is fishy by my judgment.

That judgment and mindset will never make you investment, period!

[Supreme Donvic]

Thank you so much for creating this wonderful thread, it is well structured and arranged, I believe anyone who read this your thread cannot fall victim to ponzi scheme anymore.
Ponzi scheme has really affected a lot of people, some people have committed suicide because of the money they lost in ponzi scheme.
One of the reasons why people fall for this scam is because of greed, and wanting to make money very fast, I have been scammed before through ponzi scheme and I lost huge amount of money.
My advice to everyone is to avoid what seems too good to be true.

You shouldn't just conclude because their are so many people who know about ponzi and are aware about the risk that is involved in it they still participate in it because they want to outsmart and to get some money from it. Some people are naturally greedy and always want to take risk to make money and people like this would always for into ponzi scheme. Ponzi scheme have been into existence for a longtime and i believe a lot of people are familiar wth what has happened with ponzi scheme of the past but a lot of people still involve in it till now. Had it been ponzi scheme is avoided by people because of what it is , organizers of this scheme wont even be coming with one to the public but it still exist because people are interested in it.

I perfectly understand what you are talking about and I mentioned about greed being one of the reasons why people for victim for ponzi scheme, that being said we are not going to underestimate the importance of this thread, a lot of people are going to gain more knowledge about ponzi scheme through this thread, and I believe people who are reading this thread will also read some replies and I don't think after all that reading, such a person will still fall victim to ponzi scheme, except the individual is just foolish and his greediness is extreme.
I understand the fact that ponzi scheme have been in existence for a very long time however they come with different strategy and that is also another reason why some set of people fall victim, for me the best thing to do is to avoid what seems too good to be true.

[Taskford]

You shouldn't just conclude because their are so many people who know about ponzi and are aware about the risk that is involved in it they still participate in it because they want to outsmart and to get some money from it. Some people are naturally greedy and always want to take risk to make money and people like this would always for into ponzi scheme. Ponzi scheme have been into existence for a longtime and i believe a lot of people are familiar wth what has happened with ponzi scheme of the past but a lot of people still involve in it till now. Had it been ponzi scheme is avoided by people because of what it is , organizers of this scheme wont even be coming with one to the public but it still exist because people are interested in it.

I perfectly understand what you are talking about and I mentioned about greed being one of the reasons why people for victim for ponzi scheme, that being said we are not going to underestimate the importance of this thread, a lot of people are going to gain more knowledge about ponzi scheme through this thread, and I believe people who are reading this thread will also read some replies and I don't think after all that reading, such a person will still fall victim to ponzi scheme, except the individual is just foolish and his greediness is extreme.
I understand the fact that ponzi scheme have been in existence for a very long time however they come with different strategy and that is also another reason why some set of people fall victim, for me the best thing to do is to avoid what seems too good to be true.

Yeah thread like this discussing about ponzi schemes is indeed helpful, because those new people could possibly learn lots of information thru the opinions shared by people.

But sad part even if there's discussion like this, there are still few individual still invest. Then just think about this is the most easiest way to earn money, if they are just early to invest and exit. If they just erased that mindset and try to learn from suggestion, also other information shared. There's probably a chance that maybe in future ponzi schemes sites existence might lessen.

Always best for anyone to avoid those to good to be true offers they saw online.

[puloweh555]

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.

What you told me about your friend has also happened to me. Essentially, everyone gets involved in a Ponzi scheme not only because of ignorance but also because of a greedy nature, hoping to make quick profits even though they already know the risks.

This is what I experienced I knew a Ponzi scheme would collapse eventually, but I still got involved with the calculation that I could get out first before this activity turned out to be a scam. My attitude like this shows that knowledge alone is not enough but the temptation of easy money is far stronger it really has a big influence. But after that, I started to feel regret and didn’t want to repeat it. And because of that, I always remind myself and even friends I know that something promising, especially if it offers instant profits without risk should be avoided. Because Ponzi schemes will never go away as long as people are still tempted by the promise of getting rich quickly, schemes like this will keep appearing and finding their victims.

[ovcijisir]

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.

What you told me about your friend has also happened to me. Essentially, everyone gets involved in a Ponzi scheme not only because of ignorance but also because of a greedy nature, hoping to make quick profits even though they already know the risks.

Yup, as long as there is greed schemes like this will never stop. The facade of the scheme will change according to what is trending at the moment (so far I saw oil&gas, gold mining, cryptocurrency investment, cannabis farming). But in essence unrealistic returns are dead giveaway anyond can recognise these scams.

In the end education is the only thing that can help people to avoid falling in traps like this, and also being able to control one's emotions help so they are able to keep their greed under control.

[Cheema02]

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.

I think greed is the actual reason why people get trapped in Ponzi schemes? If a wise man thinks about how we can get a lot of profit without any effort, that is the scheme scammers play on us. But despite having sense, many people trust scammers because scammers' communication skills are so high that individuals are easily convinced by them. How do people with common sense get trapped? The main reason is that scammers first give money to a limited number of people, then offer schemes to get others to join, so people trust their relatives and join the scam.

A famous quote says, "As long as greedy people exist, scammers will never go hungry." I think the main reason behind it is that people don't have financial knowledge. If they knew finance, they would first research how the plan generates money and then invest in it, but the majority of people don't have this knowledge and get trapped.

[PX-Z]

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.

I think greed is the actual reason why people get trapped in Ponzi schemes? If a wise man thinks about how we can get a lot of profit without any effort, that is the scheme scammers play on us. But despite having sense, many people trust scammers because scammers' communication skills are so high that individuals are easily convinced by them.

Trusting scammers is a big word. Why would you trust scammers? It doesn't make sense at all.

People these days know how ponzi works, thus, think they could beat the system by investing in the very beginning, as early birds, through overconfidence by this knowledge, also being financial desperate and just waiting their weekly or monthly payouts. Not knowing those b*stards already know and already setup a trap once they started investing. Those behaviour are just on casino peeps, who consider "beginners luck" as really a luck but just a casino trap for them to deposit and spend more then later get addicted to it.

[Jostern]

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.

You’re right, people who wants to make money and being greedy is something that is going to get people into trouble, there are so many ways people can make money in the right ways without getting themselves into trouble were they will end up getting scammed, not everything on the internet is as good as we think so it’s better to be careful with people we are dealing with in terms of investing money in something we know nothing about, anything that you have to invest your money, and you’re just earning money with big profits is just absolutely a scam, some people can be greedy that when they hear invest your money in something that will give them money online they jump into it immediately without verifying anything which is greed.

[GeorgeJohn]

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 ,

Ponzi schemes is not something a business person can go into, because with a Ponzi scheme you will lose what you never expected to lose, and it's a greedy that make most of people who lost out ponzi to loss their capitals, i still believe most of the people never know that ponzi scheme is scam, and that is why you see some ignorant people keep investing for such, we need to understand that ponzi scheme can never die or being out of the market, unless we have more less greedy people on the streets

It's poor people that goes about investing in ponzi scheme to upgrade their chances of building wealth, that is the reason most of the people who lost their money in ponzi are people who base in rural area, or people who is interested to use $1 to make $7k within 24hrs

[Mpamaegbu]

<snipped>

That judgment and mindset will never make you investment, period!

If I got you right, you were trying to say there that such mindset and assessment of mine in respect to investment won't make me invest in anything, right? Well, if that's what you meant there, I will gladly tell you "once bitten, twice shy." I've stayed long in this industry to have developed that capacity to know how to stay away from _{what doesn't smell right}.

[uchegod-21]

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.

There was a time I could confidently say that people invested in ponzi schemes because of ignorance. Because back then when ponzi schemes were first introduced, people were genuinely ignorant. They thought the organisers or sponsors of such schemes were being generous and helpful to them. Then, the story changed and there were more and more reported cases of similar situations were the organisers "ran away" with investors money ,leaving without trace. I still remember that my mom was once a victim. But now, she has learnt more than enough lesson.

There is no one who cannot identify a ponzi scheme now when they see one, but obviously, greed appears to be a very powerful influence. People truly don't care about the risks, they just build their hope on the expectations of very high profit returns, usually 100% profits or even more. There is nothing like ignorance here, they all know what they are doing.