Ponzi Scheme 101

[cocadalcan]

No matter how you warn people against scams, they still keep falling into it, recently there was news of another Ponzi scheme that exited with customers' money.


This time is about trading digital assets and with a guarantee profit on daily basis, this make the offer attractive to the greedy forks, that thinks such offer are good fast way to make money, but in the end they get robbed.

The problem now with people is that, some of these people already know that these schemes are obvious ponzis and that they may collapse or exit at no distance time, but rather than running away from them, they’d rather choose to go in and see if they can get some little profits before the Ponzi scheme collapse and exits. So actually does succeed in doing so, while some end up getting rug pulled on the process.

If they had known in advance these people would not have joined this uncertain project. Many new people are entice by the developers involved in these schemes with the hope of high profits. Many newbies do not want to ignore this tempting opportunity to get high profits in a short time, so some of them take risks. The reason why new people are more involved than running away from these schemes is the hope of getting rich in a short time and the tempting offer of making a lot of profit against the capital.

[BitBakerr1]

No matter how you warn people against scams, they still keep falling into it, recently there was news of another Ponzi scheme that exited with customers' money.


This time is about trading digital assets and with a guarantee profit on daily basis, this make the offer attractive to the greedy forks, that thinks such offer are good fast way to make money, but in the end they get robbed.

The problem now with people is that, some of these people already know that these schemes are obvious ponzis and that they may collapse or exit at no distance time, but rather than running away from them, they’d rather choose to go in and see if they can get some little profits before the Ponzi scheme collapse and exits. So actually does succeed in doing so, while some end up getting rug pulled on the process.

Yes, you are correct, I know someone who was aware that what he is investing in is a ponzi scheme, but the reason why he decided to invest in it is because he believed that he is going to make some profit and then exit before it crashes.
There are people who love Ponzi scheme, when they see one they know it is a ponzi scheme, but they believe they can go into it make profit and exit before it crashes and they take it as a side hustle.
Some of these people lose sometimes and gain sometimes but what makes me angry is them inviting other people and telling them it is genuine meanwhile it is not and they know it.

[Xackie]

If a person gets scam even though we already remind them of what is the danger then its already their fault because  we did remind them of ponzi scheme and what will happen, its already their responsibility as a person to protect themeselves, what ever happen to them is their fault , we dis our part to protect them.

You are right. I always urge people to develop the habit of doing their own research before putting money into something they have no slight idea about. There are some type of scams that looks real and someone can easily fall for them. Some scammer will go to an extra length of creating a good websites, using fake testimonials that make their stuff look real. But if someone decides to calm down make more deep finding it will really help them alot. Sometimes they might even know that it's a scam but greed and blind risk taking will deceive them to try it out due to the unrealistic returns it promises to give. Which is why I don't pity them when they lose their money to scammer. They have been warned several times but they refuse to take heed.

No matter how you warn people against scams, they still keep falling into it, recently there was news of another Ponzi scheme that exited with customers' money.


This time is about trading digital assets and with a guarantee profit on daily basis, this make the offer attractive to the greedy forks, that thinks such offer are good fast way to make money, but in the end they get robbed.

You know why most of them fall into that trap again? Sometimes it's because of the testimonials they hear from real people's mouth (maybe a friend, neighbour, family made profit).  There're some non crypto related ponzi scheme (Money doubling type e.g Nigeria MMM) , in these ones the early birds would profit and start preaching to people to join . By showing them the actual profit they made, so anyone who sees it will be easily swayed to join even when they have been warned about ponzi schemes. They've completely lost their sense of thinking because now , they have already seen an actual profit being made. But what they don't know is, that's actually the main plan of those scammers.  They will gladly give the early birds profits , then more people (x2-10 of the early birds) will rush in to invest into their platform and that's when the scammers would steal people money and run away with it. This happens countless of times and people even when they are being cautious, they still fall for it .

[L E G E N D A R Y]

Yes, you are correct, I know someone who was aware that what he is investing in is a ponzi scheme, but the reason why he decided to invest in it is because he believed that he is going to make some profit and then exit before it crashes.
There are people who love Ponzi scheme, when they see one they know it is a ponzi scheme, but they believe they can go into it make profit and exit before it crashes and they take it as a side hustle.
Some of these people lose sometimes and gain sometimes but what makes me angry is them inviting other people and telling them it is genuine meanwhile it is not and they know it.

And as funny as it may sound, some people have already gotten used the the schemes, not like they predict exactly when the ponzi would rug pull, but they already have that mindset that it would, and still decide to gamble on it, and for those who actually do Ponzi scheme, this is actually the best way to approach it. Sometimes what makes Ponzi really destructive and dangerous is the fact that people go in totally oblivious of the fact that they can actually lose everything in such investments, and so they go in without properly calculating the risks. But going in with the mindset and understanding of what they’re actually getting into actually helps them set realistic expectations and properly manage the risks and of course make their expectations realistic, that way even if the ponzi crashes, they must’ve already prepared for it.

[Nightwatchmare]

Yes, you are correct, I know someone who was aware that what he is investing in is a ponzi scheme, but the reason why he decided to invest in it is because he believed that he is going to make some profit and then exit before it crashes.
There are people who love Ponzi scheme, when they see one they know it is a ponzi scheme, but they believe they can go into it make profit and exit before it crashes and they take it as a side hustle.
Some of these people lose sometimes and gain sometimes but what makes me angry is them inviting other people and telling them it is genuine meanwhile it is not and they know it.

That is why a friend of mine was thinking he is going to invest in a ponzi scheme and cash out before the ponzi scheme crashes but he ended being a victim to a ponzi scam, and the sad part is that he borrowed money to invest in the ponzi scheme, right now he is still in debt and he does not know how to pay back the debt. Some ponzi schemes, the more you invite people into it the more you earn referral bonus and cash out big. So the people who invite people into a ponzi scheme knowing very well the people they are investing might lose their money are doing that for referral bonus and for them to cash out big before the ponzi scheme crashes.

[Hazink]

Yes, you are correct, I know someone who was aware that what he is investing in is a ponzi scheme, but the reason why he decided to invest in it is because he believed that he is going to make some profit and then exit before it crashes.
There are people who love Ponzi scheme, when they see one they know it is a ponzi scheme, but they believe they can go into it make profit and exit before it crashes and they take it as a side hustle.
Some of these people lose sometimes and gain sometimes but what makes me angry is them inviting other people and telling them it is genuine meanwhile it is not and they know it.

I know a lot of people that fall into that category and that's why in every Ponzi scheme that comes out today, they will always have customers who later turn out to be their victims. We have a set of people who every new Ponzi scheme that's launched.

They are always part of the first set that join they believe they can benefit before the platform grows bigger and eventually falls everyone who is joining have such mindset and are ready to pull out when necessary, so who will sacrifice themselves to be a liquidity provider? It works for some of them most times and at times it doesn't.

[Dave1]

That is why a friend of mine was thinking he is going to invest in a ponzi scheme and cash out before the ponzi scheme crashes but he ended being a victim to a ponzi scam, and the sad part is that he borrowed money to invest in the ponzi scheme, right now he is still in debt and he does not know how to pay back the debt. Some ponzi schemes, the more you invite people into it the more you earn referral bonus and cash out big. So the people who invite people into a ponzi scheme knowing very well the people they are investing might lose their money are doing that for referral bonus and for them to cash out big before the ponzi scheme crashes.

That is wrong mind set in the first place, he already know that it's already a Ponzi scheme and still take that big risk. You can't say that you will cash out because you don't know where is your place in that pyramid already.

Maybe when you enter you are already in the bottom of the food chain, so it's just a matter of time that it will collapsed and you won't get the money that you invest. So it's better to not trust any good to be true returns as it already screams that is a Ponzi scheme.

[lionheart78]

That is why a friend of mine was thinking he is going to invest in a ponzi scheme and cash out before the ponzi scheme crashes but he ended being a victim to a ponzi scam, and the sad part is that he borrowed money to invest in the ponzi scheme, right now he is still in debt and he does not know how to pay back the debt. Some ponzi schemes, the more you invite people into it the more you earn referral bonus and cash out big. So the people who invite people into a ponzi scheme knowing very well the people they are investing might lose their money are doing that for referral bonus and for them to cash out big before the ponzi scheme crashes.

That is wrong mind set in the first place, he already know that it's already a Ponzi scheme and still take that big risk. You can't say that you will cash out because you don't know where is your place in that pyramid already.

That is indeed a wrong mindset but I know lots of people go that path.  They know that it is a Ponzi scheme and that the risk of getting into that scheme is great, but they still take the chance and join the scheme hoping that they are not late and can be at least the pioneer of such scheme.  They do not care whether they will lose money what they care is to be among the early bird that benefit from the structure of the Ponzi scheme.

Maybe when you enter you are already in the bottom of the food chain, so it's just a matter of time that it will collapsed and you won't get the money that you invest. So it's better to not trust any good to be true returns as it already screams that is a Ponzi scheme.

True that, we should not be greedy and be swayed by these too good to be true offer, but sadly, people who already know the scheme still join hoping to have a quick profit.

[SOKO-DEKE]

That is why a friend of mine was thinking he is going to invest in a ponzi scheme and cash out before the ponzi scheme crashes but he ended being a victim to a ponzi scam, and the sad part is that he borrowed money to invest in the ponzi scheme, right now he is still in debt and he does not know how to pay back the debt. Some ponzi schemes, the more you invite people into it the more you earn referral bonus and cash out big. So the people who invite people into a ponzi scheme knowing very well the people they are investing might lose their money are doing that for referral bonus and for them to cash out big before the ponzi scheme crashes.

That is a very stupid idea. How will someone see a fire and still try to enter it, as if the fire is not going to burn him? Even it knows that fire will definitely burn him.Even should be eager thinking of making quick money, I will never try to put money into a Ponzi scheme when I am already aware that it is a Ponzi scheme. Assuming I don't know any better, that is understandable, but when I know, I can never take that kind of risk.The truth is that Ponzi schemes don't tell anyone their real intentions or plans, and someone may not know what they are planning. However, anyone who understands how they operate knows that once money enters a Ponzi scheme, it will be a matter of luck for some people to get their money back.Seriously, that is stupidity. And the funny part is that the person doesn't even have the money they want to invest; they have to borrow it just to put it into a Ponzi scheme.Even with Bitcoin, where we have seen more positive evidence of its long-term potential, we are always advised to invest only what we can afford to lose. Talk more of something where the chances of losing money are as high as 99%.

[IjawMan]

Rule of thumb for me, if something is too good to be true, it is likely a scam or a Ponzi scheme.  The stock market is relatively risky and will historically give you an annualized return of roughly 10% on your money.  If someone is promising you a guaranteed 20-50% return on your money, then you should be really careful.  Just my opinion. 

I have certainly endeavoured to keep to this rule and it has in many times prevented me from falling into any scheme no matter the name it comes by.

Much persons that have fallen victim to ponzi scheme is as a result of their greed and self doubt about it not possibly becoming a ponzi.

There is no investment type that is without a risk, except it has no potential returns but when it promises lots of returns and does not explain how the profits are generated, and with clearly dishing off any accompanied possible risk then that is a real ponzi scheme waiting to pull a scam exit.

[tech30338]

Rule of thumb for me, if something is too good to be true, it is likely a scam or a Ponzi scheme.  The stock market is relatively risky and will historically give you an annualized return of roughly 10% on your money.  If someone is promising you a guaranteed 20-50% return on your money, then you should be really careful.  Just my opinion. 

I have certainly endeavoured to keep to this rule and it has in many times prevented me from falling into any scheme no matter the name it comes by.

Much persons that have fallen victim to ponzi scheme is as a result of their greed and self doubt about it not possibly becoming a ponzi.

There is no investment type that is without a risk, except it has no potential returns but when it promises lots of returns and does not explain how the profits are generated, and with clearly dishing off any accompanied possible risk then that is a real ponzi scheme waiting to pull a scam exit.

Target of this kind of scam are new comers because they are so expose and gets greedy once they saw a return of investment that is so big, that's when they are already hooked by the scammer the moment they send the money or invest they will let the users experience it in a few days then suddenly they will go dark and never to be found.
The victim is clueless and will deny that its a scam, it will come to their senses once they were already unable to contact anyone, and all come to their senses that its already too late the money is gone.

[Big Dirams]

Rule of thumb for me, if something is too good to be true, it is likely a scam or a Ponzi scheme.  The stock market is relatively risky and will historically give you an annualized return of roughly 10% on your money.  If someone is promising you a guaranteed 20-50% return on your money, then you should be really careful.  Just my opinion. 

I have certainly endeavoured to keep to this rule and it has in many times prevented me from falling into any scheme no matter the name it comes by.

Much persons that have fallen victim to ponzi scheme is as a result of their greed and self doubt about it not possibly becoming a ponzi.

There is no investment type that is without a risk, except it has no potential returns but when it promises lots of returns and does not explain how the profits are generated, and with clearly dishing off any accompanied possible risk then that is a real ponzi scheme waiting to pull a scam exit.

This rule has helped so many people in this cryptocurrency space, when something is to good to be true then we should make research about and possibly we should stay away from it. some people are aware of this rule but their greed won't allow them make the right choice, thinking they could try out their luck and maybe they would make good result but they just end being a scape goat and examples to others. An investment can't be risk free and we should be aware of that.

[IjawMan]

Rule of thumb for me, if something is too good to be true, it is likely a scam or a Ponzi scheme.  The stock market is relatively risky and will historically give you an annualized return of roughly 10% on your money.  If someone is promising you a guaranteed 20-50% return on your money, then you should be really careful.  Just my opinion. 

I have certainly endeavoured to keep to this rule and it has in many times prevented me from falling into any scheme no matter the name it comes by.

Much persons that have fallen victim to ponzi scheme is as a result of their greed and self doubt about it not possibly becoming a ponzi.

There is no investment type that is without a risk, except it has no potential returns but when it promises lots of returns and does not explain how the profits are generated, and with clearly dishing off any accompanied possible risk then that is a real ponzi scheme waiting to pull a scam exit.

This rule has helped so many people in this cryptocurrency space, when something is to good to be true then we should make research about and possibly we should stay away from it. some people are aware of this rule but their greed won't allow them make the right choice, thinking they could try out their luck and maybe they would make good result but they just end being a scape goat and examples to others. An investment can't be risk free and we should be aware of that.

You must maintain a walking-code to guide yourself with in this space, be you a newbie is not an excuse to come to the cryptocurrency space and walk loosely.

You can be able to tinker ahead and make progress when you are disciplined and never taking stupid risks by diving into a bad investment and thinking you can be lucky to profit from it. Luck is not a currency in this space, but the right decisions and doing research for every thing you are not comfortable with.

[Mummy OS]

You must maintain a walking-code to guide yourself with in this space, be you a newbie is not an excuse to come to the cryptocurrency space and walk loosely.

You can be able to tinker ahead and make progress when you are disciplined and never taking stupid risks by diving into a bad investment and thinking you can be lucky to profit from it. Luck is not a currency in this space, but the right decisions and doing research for every thing you are not comfortable with.

I will advise people to only invest in Bitcoin alone because the altcoins market is full of shits.
Some altcoins are just pump and nothing more. Those that understood the market will not make stupid mistake to think that diversifying investment should involve some crazy altcoins that have not use case. Some people are only good at advising others and they can not check there decisions when selecting projects to invest in.