All Ponzi scheme start with seed money

[OsaiEmma]

Why do you in the first place think Strategy would pull or is pulling a Ponzi? With them being a public US company it’s very extremely unlikely for that to happen…

I consider any scheme that pays investors using money derived from the investors' own capital, rather than from value created by providing a genuine product or service, to have the characteristics of a Ponzi scheme.

100% true. That's the definition of a Ponzi scheme, but is it what strategy is doing? I don't think so. Strategy Inc. does provide valuable service too. Besides, if they invest investors money in Bitcoin, is that a ponzi scheme? You mentioned that Bitcoin doesn't fit in that criteria; how does investment investors money in Bitcoin a ponzi?

They are not recycling the investors money by giving investors A's cash to investor B and on and on. They are investing it in Bitcoin and then redistributing value to shareholders through stock appreciation. I don't think this fits in with what a Ponzi scheme is.

[TheUltraElite]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

[Taskford]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

That kind of set up is really crazy because imagine the risk of the actions they have done. Also their investment model is actually not sustainable that's why its expected that everything will fall apart if bearish trend will happen.

But basically they are using that thing to lure people and the actual actions they have done is basically to pay the profit of people to new deposit will came on their scheme. But eventually later on that schemes will fall again, when there's no new investors will came or the operator of that model start to scam their depositors.

I think we are done with this era and to many warnings placed on internet. Better for people to learn from past mistakes done by other people so that they won't fall on this type of scams.

[SquirrelJulietGarden]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

It's how people can be scammed easily because of "too good to be true" offers, they want to get rich easily, quickly without efforts of learning, managing risk, managing their money, so it's perfect chance for scammers to do their scam jobs.

Ponzi starts with money, it's definitely right because without money attraction such as "double your money for profit", there will be no people fall to Ponzi scams and become victims.

People have to know the most basic thing, if making profit is too easy like this, where is the money comes from, and if it is actually easy, all people globally would have been rich already. They only need to open their eyes, see the fact that there are the rich and the poor, so there is no easy get rich quick chances for everyone.

[purple_sparkles]

Whether you like it or not is your choice but these are risky investments. A company buying BTC with the investors money and using the profit to give back what it has owned. Its similar to "give me your money, I will double it back".

I would never suggest someone to invest in such companies or buy their shares. Buying bitcoin is much safer instead, but people have a notion that since the BTC they are not directly buying, they are devoid of it the risks it pose, which is a fundamental mistake.

Any company will go down, the creators of the scheme may have left by then but your money will get stuck at some point.

If we're talking only about buying bitcoin, then I also don't see much point in having a middleman between the user's investment and their bitcoin holdings. However, if someone is busy with other profitable activities and doesn't want to spend time learning about cryptocurrency exchanges, bitcoin, and everything that comes with it, then services like these can be very useful.

[Dr.Bitcoin_Strange]

Well, the way most ponzi (s) are being organized, investors or stakeholders will be told their their capital is being invested into a particular thing and that the returns will be made in a few months time or few weeks and then the organizers will use the money for their personal business while giving hope to the investors, after that given time is over, they will pay out investors probably from their own pockets and then encourage them to invest double and by so doing, they tend to gain trust and they repeat the cycle for about 2-4 time and probably on the 5th cycle when they have got more than enough investors, they will disappear with their money, but in the case of Strategy, I think everyone (her investors) are already aware of the circle going on, so they chose to take the risk and probably they can not hold the coins by themselves and so they decided to invest on strategy.

[puloweh555]

It's how people can be scammed easily because of "too good to be true" offers, they want to get rich easily, quickly without efforts of learning, managing risk, managing their money, so it's perfect chance for scammers to do their scam jobs.

Ponzi starts with money, it's definitely right because without money attraction such as "double your money for profit", there will be no people fall to Ponzi scams and become victims.

People have to know the most basic thing, if making profit is too easy like this, where is the money comes from, and if it is actually easy, all people globally would have been rich already. They only need to open their eyes, see the fact that there are the rich and the poor, so there is no easy get rich quick chances for everyone.

That's right. All Ponzi schemes are very easy to detect if we have knowledge and a mindset about crypto. Those who are easily trapped in Ponzi schemes are usually those with greed and a desire to get rich quick without effort. These two aspects are the main attraction of Ponzi schemes. Scammers exploit these two aspects with promises of unrealistically high returns.

So, the key to avoiding these schemes is to be critical and question them. If it's this easy to gain profits, why isn't everyone rich? Because, fundamentally, true wealth requires time, knowledge, risk management and discipline. There are no shortcuts. So, if the offer is too unreasonable it usually won't materialize, especially if investing through an intermediary in this case a company.

[Mate2237]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

Tell me OP are you in anyway saying that strategy as a company is a fraud and ran a ponzi scheme. Because you using strategy as an example in your apology is not inappropriate if you ask me. Because you are trying to raise up an accusation based on sentiment without no prove. Strategy has made it clear that it's selling part of their holdings to pay back investors which is the normal thing that every company, which open up to the public does including your Banks and any other company in the world.


I will not subscribe to the Idea that strategy is a ponzi scheme, because Ponzi schemes don't operate this way. Strategy didn't promise any of their investors with a quick money fix in terms of their return on investments. Strategy is a company which needs money to run and if they decide to raise money via selling off it assets there is nothing criminal about it and we all should respect that fact.

[cryptoaddictchie]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

This is an old way or method from scammer. Ponzi scheme has been with us for so many years and if ever we see some kind of the same approach in the market just simply warn your friends if ever they encountered some.

This kind of scheme has been lurking around in our country for so long and still there are some who believed thats the investment is real and has potential to change their lives but ending up being screwed in the end.

[OcTradism]

This is an old way or method from scammer. Ponzi scheme has been with us for so many years and if ever we see some kind of the same approach in the market just simply warn your friends if ever they encountered some.

This kind of scheme has been lurking around in our country for so long and still there are some who believed thats the investment is real and has potential to change their lives but ending up being screwed in the end.

Careful people will not be scammed by Ponzi because they are careful, will spend time for checking and they are able to control their actions, don't let greed leads them to bad mistakes.

Careless people, in contrast, are more sensitive with Ponzi, because they don't spend time to do research and checking such Ponzi offers, they are likely greedy enough to make decisions very quickly. Especially there are very good Ponzi offers waiting them to take, so it's not helpful with them even we give them warnings about Ponzi.

They like profit, want to get a lot of money as most easily and quickly as possible, and surely Ponzi can give such promise.

[Rustam Meraj]

I can see where you are coming from with the cycle, but it is pretty bold statement to say Ponzi scheme. Ponzi usually depends on paying out older investors with money raised from newer investors without doing any business. ​If this is company that is fully open about its Bitcoin holdings and making it part of its records, then it is not really more of a fraud. Although some people may not agree with this model, it remains part of normal corporate finance to buy and later sell Bitcoin in order to control payouts. ​This concern is fair on the risk side, particularly when returns are largely function of price change of assets. A Ponzi requires more, however, than money cycle.

[Cookdata]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

I may have not been a fan of Micheal Saylor and Strategy but this is not the plan, if the initial plan was a ponzi scheme, he would have sold his Bitcoin when the price was looking juicy, remember he bought many of them as low as $13k and the price went as high as $120k and he never sold a single one until the recent 32 Btc that went viral and cause sentiments to the market.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

He said he was selling Bitcoin, but that move was done strategically, and he needed to assure the STRC investors that there are funds on the ground to pay their dividends. This will indirectly boost their confidence, and the sell pressure on STRC will reduce. Now, this may make sense,if it gets worse, they may sell, but that doesn't change them to become a Ponzi scheme.

If there is anyone who followed Saylor from last year to this year, I was one of the people. He was trying to make the Donald Trump government have Bitcoin, all this effort was to make his dream come through which is a good thing but not having a back up plan was his greatest mistake. launching STRC was really a bad idea but I hope all this turn out well for him.

[Agathamay]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

Are you one of the board members of those Ponzi schemes  ;  (just kidding)

I also don't see any reason why people should buy the idea of a free money atleast not this 2026 because I have seen how Ponzi schemes have been flying lately and the fact that people still lose from it is really funny to me because I just have to conclude that, anyone who losses to Ponzi schemes is simply just greedy and lazy and just want to be relaxed and enjoy free money but the truth is that, there is no free money anywhere and the moment too have this at the back of your mind, then you are already a step ahead.

There is a ponzi telegram group I saw in a friends phone, but despite the group been flagged as scam, I see new scam projects been launched regularly and the shocking part is that, people still partake in these new projects which is a clear sign that, these people know and understand the risk but still chooses to take it


mind you, there are people who know how best to do these things and making good money from ponzi even without being a pet of the team.

[macson]

To me, it's a very simple cycle.

It's not as simple as you think, because Saylor used a clever strategy to use his company to accumulate Bitcoin on a massive scale and use it as a reserve asset. It has nothing to do with the Ponzi scheme you're talking about, because they transparently purchased Bitcoin, and the funds came from legitimate and traceable sources.

If it were a Ponzi scheme, people would have noticed their unusual activity long ago and would have avoided dealing with the company.

[TheUltraElite]

If we're talking only about buying bitcoin, then I also don't see much point in having a middleman between the user's investment and their bitcoin holdings. However, if someone is busy with other profitable activities and doesn't want to spend time learning about cryptocurrency exchanges, bitcoin, and everything that comes with it, then services like these can be very useful.

That is a wrong approach to investments when it comes to crypto.

If it is not your keys, it is not your coins. You can never trust anybody with crypto to be held by them and not you when you are dealing with actual bitcoin. People like someone to handle it for them because it gives them a sense of security, but that someone might be a scammer collecting money from hundred other people just to scam them one fine day.

Simple way to deal with this is not to listen to anybody who says they can double your money.

[dzungmobile]

That is a wrong approach to investments when it comes to crypto.

If it is not your keys, it is not your coins. You can never trust anybody with crypto to be held by them and not you when you are dealing with actual bitcoin. People like someone to handle it for them because it gives them a sense of security, but that someone might be a scammer collecting money from hundred other people just to scam them one fine day.

Simple way to deal with this is not to listen to anybody who says they can double your money.

The first thing is protect the initial capital safely.
The second thing is making profit from it.
The third thing or last one is: If it is impossible to get profit, let's defend your initial capital and exit.

When people invest money in crypto, if they don't own private keys, they don't have coins, and they already violate the first principle. Everything they do after that can become useless if they lose their money, for example, in accounts on centralized exchanges.

Years ago after Mt.Gox hack, many people still did not receive their money back.

[Johnlomape]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

I have heard of so many Ponzi scheme that have ended and this is because the team behind the ponzi had made enough money to exit their scam. My problem is that I don't know why so many people are joining ponzi scheme when the pattern being used is not different from what we have been seeing with other ponzi schemes and how so many people are losing their money.

Those investing there money in ponzi are taking a very big risk that can avoid before they lose their money.
Not all the invetsors do lose money to ponzi scheme but the investors that joined late are the ones that do regret why they involved themselves in it.

[dezoel]

To be fair, even if you are going to scam people, you need marketing . Yes, I know that they are scammers, but without spending a dime, they can't scam anyone, how will you even heard about a scam?

If I make a scam coin today at my home, which would take 15 minutes with claude to do, it is so easy, but then do not spend a dime on marketing, and just spam it here, who would invest? So you need money even to scam people, so in this crypto world, nothing happens without money, it is not going to happen.

[Nathrixxx]

We should know that ponzi scheme doesn't just operate like that without developing its own strategy they will use to captivate us to attract our attention and steal from us.

All they will do is to ensure that the draw your attention to commitment of paying some particular amount to tie you down and later begin to demand for more in other for you to be able to withdraw your entire money back, the more you do the higher the cost and loss, and the more you get tied to them, but all this does not exist in the Bitcoin network, except you don't know what to do.

[ndutndut]

In my view, every Ponzi scheme starts with seed capital. Strategy had that seed capital and used it to buy Bitcoin (quite a lot of it).
It then built a strong reputation, completed an IPO (and later another capital raise), and attracted even more investor money.

With those new funds, it bought additional Bitcoin, creating the impression that the company could generate an endless stream of value for shareholders.
Now, as I see it, it's selling Bitcoin that was originally purchased with investors' money in order to return cash to those same investors through dividends.

To me, it's a very simple cycle.

This is an old way or method from scammer. Ponzi scheme has been with us for so many years and if ever we see some kind of the same approach in the market just simply warn your friends if ever they encountered some.

This kind of scheme has been lurking around in our country for so long and still there are some who believed thats the investment is real and has potential to change their lives but ending up being screwed in the end.

Absolutely. Ponzi schemes will always exist, but there's a distinction between classic Ponzi schemes and evolving Ponzi schemes. In fact, we'll always find them in the crypto world. In fact, almost all Ponzi schemes share similar characteristics. Even if they're packaged with fancy technology or AI trading, the hallmark of a Ponzi scheme is that they always promise high stable returns without any apparent risk. They require a small initial capital to attract a large number of people after which they can proceed.

Essentially, Ponzi schemes in crypto will be difficult to eradicate because they've become a part of the cryptocurrency landscape. Furthermore, many people enter the crypto world due to greed coupled with the anonymity of crypto. So, what we can do is increase literacy and always be suspicious before entering.