Ponzi is an investment scheme that rewards early investors in order to attract a large number of new investors.After a lot of funds have been collected, the ponzi scheme maker will run away with funds from investors. Ponzi was introduced by Charles Ponzi in 1920. Ponzi schemes are usually pyramid-shaped.
Lots of investment models that promise unreasonable profits. They usually offer daily, weekly, monthly, or yearly plans.
pic : https://en.wikipedia.org/wiki/Charles_Ponzi
Understanding Ponzi schemes is very easy. When you see an investment that promises unreasonable returns and is backed by an unclear business, you have to be careful.
The following are the characteristics of a ponzi scheme.
Have you ever participated in Ponzi schemes?You should stay away from investments like this. In crypto, you often encounter mining investments with too large a profit. You are not getting profit sharing from mining, but you are getting profit from other members' game money.
HYIPs are a form of Ponzi. High Yield Investment Program (HYIP) is an investment that provides unreasonable profits. After you deposit your money, you will see your investment calculator increase. You will feel happy and there is a referral program so that your profits are bigger. Finally, you invite other people through social media. You will become more excited, and then you will find it difficult to withdraw.And after that, the website and the ponzi scheme will be inaccessible for various reasons, such as being hacked or having other problems. Therefore, don't be interested when you get an investment offer that promises unrealistic returns.
