Ponzi Schemes for dummies

[Husires]

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[Peanutswar]

There are a lot of people right now are still victim with the use of the Ponzi scheme and most of them are invested a huge amount of money and OP gives a good thread about this but how about the people does not read those still there are few they are still making an investment regarding with the Ponzi and some of them already learned they mistake.

Most of the tag I usually see in terms of Ponzi are:

• 1. We can double or triple your investment and earn up to 10 BTC.
• 2. This is safe and secured.
• 3. You can get your profit in just a week.
• 4. Invite more friends and double your funds.

[Raflesia]

There are some people who will never listen if someone warns them about impending losses. Because they are very greedy, they have to face huge losses due to this greed. Using this greed of people, the owners of ponzi scheme websites are still continuing their scams.

If they didn't get investors, they wouldn't spend so much to build a website, they do marketing with Google ads. Then it means how big their market is, they getting big number of investors. Look at this post of yours, if those people are careful, who dream of getting rich quick. 

Until now, too much greed has happened to the ponzi scheme that they invest and in the end they have to accept the risk that there is certainly for stubborn people to be advised to avoid the ponzi scheme.

Look at this board Scam Accusations a lot of catches that occur with the incipient ponzi scheme site for newbies to always pay attention to these threads to find out about the ponzi scheme catches that should be avoided.

[odolvlobo]

The two most common Ponzi scheme that I have seen is investment based pyramid scheme and MLM based cryptocurrency scheme. Both these will offer higher returns on amount invested.

Those are pyramid schemes, and not ponzi schemes.

Ponzi schemes and pyramid schemes are different, though they are similar in that current victims benefit from newer victims.

A ponzi scheme is an investment fraud in which the operator claims to invest the victims' money, but keeps it instead. The operator generally uses some of the investment money to convince victims that the investment is making a profit. Many ponzi schemes also incorporate a pyramid scheme by paying for referrals.

In a pyramid scheme, a victim generally pays current members of the pyramid scheme to join the pyramid scheme, and then makes money by convincing others to pay him to join. There are variations, or course. For example, often a victim doesn't buy membership outright, but instead pays for some product in order to join and then sells products to new victims who buy in order to join.

[virasog]

Thanks for this wonderful post.

The two most common Ponzi scheme that I have seen is investment based pyramid scheme and MLM based cryptocurrency scheme. Both these will offer higher returns on amount invested.

It is better to stay away from such scheme if you want to protect your investment.
 

There are many ponzi schemes which are fooling the newbies and i like your attempt to write a detailed description about them.
Another ponzi scheme is the matrix like zarfund which was very popular few years back. That was sort of MLM and it only gave benefits to the owner or who joined on top the the matrix level.

Despite the fact that these Ponzi schemes have been described many times, the number of newcomers who have lost their money is not decreasing. This can only be explained by the fact that most people only learn from their mistakes, and do not read the thread dedicated to this type of scam here.

The fact is that most people do not take it seriously unless they become victim themselves. There is no point learning after you lose your money in ponzi schemes. Its better to learn before because you will come across many ponzi schemes on daily basis advertised on social media. It's difficult to stay away from them because they have so much attraction in them.

[CryptopreneurBrainboss]

Lack of education why they keep on existing. There are a lot of people lacks of education on determining what ponzi's are. And that's why they keep coming and targeting people who lacks of education about them.

Not just that as from my observations, I have come to understand they target the gullible users, those wanting to make quick and easy money. I'm from a country this type of practice is seen as a normal thing, that's almost everyone is aware of this scams called Ponzi yet they still give patronage as far it can make them rich not minding if others get affected on the process. You'll see a well educated individual seriously promotion a Ponzi, deceiving others that look up to them for their own selfish reasons.

The recent trend is, they hide under the cover of them doing multi level marketing, convincing you into believing what you're enrolling yourself into isn't Ponzi but multi level marketing. This Ponzi scams comes in different forms but the cryptocurrency related ones are becoming a trend off recent which just sadden me because many won't recover from the fact cryptocurrency isn't a scam when they all crash.

[tvplus006]

...There is no point learning after you lose your money in ponzi schemes. Its better to learn before because you will come across many ponzi schemes on daily basis advertised on social media...

To learn there is always a sense) And the experience that comes after the loss of money, should lead to the fact that in the future this will not happen again. But there are some participants who even after losing money continue to participate in Ponzi schemes, hoping that this time they will be able to get out of this Scam in time and they will be able to get a profit.

[Asuspawer09]

...There is no point learning after you lose your money in ponzi schemes. Its better to learn before because you will come across many ponzi schemes on daily basis advertised on social media...

To learn there is always a sense) And the experience that comes after the loss of money, should lead to the fact that in the future this will not happen again. But there are some participants who even after losing money continue to participate in Ponzi schemes, hoping that this time they will be able to get out of this Scam in time and they will be able to get a profit.

At some point a lot of people tend to join this pyramiding scheme, first, they just don't know it is really a scam investment or not, 2nd is I think they want to become part of the scam to earn a profit.

When you already know how it works you could easily identify scams or pyramiding projects. And at some point, you could actually ear in this investment that is why a lot of people are encouraged to join because they see other people earning in it. Affiliate or referral is actually a big part of it since you could earn when you invite someone that also invested in the program.