Was ist ein Ponzi Scheme?

Sep 09, 2019

What is a Ponzi Scheme and how to recognize it?


Some people are not familiar with crypto-calling industry and Bitcoin, especially a Ponzi scheme. Fortunately, this claim is far from the truth. This article will help you shed light on what Ponzi System is and what is the concern?

Where did "Ponzi" come from?

In 1919, the Italian Charles Ponzi moved to America and founded the Securities Exchange Company, which committed to issuing 1000 promissory notes in 90 days to pay $ 1,500 for every $. In the spring of 1920, Ponzi acquired a large villa in the posh area. In the summer he was imprisoned due to a tax audit resulting in a $ 7 million debt.

Ponzi uses the scheme as a form of fraud with attractive, at first glance, promising conditions for investors and profit. In fact, the "profit" for the scheme derives victims from the contribution of previous investors. For average, non-financial savvy people, especially in the crypto industry, Ponzi may seem like a sustainable business. In fact, this business only exists as long as new investors contribute and as long as they believe in the dividends they get. After all, the Ponzi scheme is doomed to fail anyway.

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A Ponzi scheme typically requires a legal person to register a bank account and purchase a license to accept deposits and create advertisements, so such schemes are often disguised as a conditional product, such as coupons or club discount cards.

I pyramid cryptocurrency?

The crypto itself is promising digital money technology, which unfortunately, like all other means of payment, can be used in pyramid schemes. This is a currency, the operations are protected by mathematical algorithms and registered in the public blockchain distributed in the network. However, crypto can be used to purchase goods and services in pyramid schemes. You should know these systems to protect yourself from fraud.

How pyramids are used in cryptocurrency

A Ponzi scheme is far from new, but with the advent of cryptocurrency, it definitely gets a second wind because financial activities in this area do not require legal, bank account, or licenses, and the organizers successfully circumvent many aspects of a legal nature .

The mainstream around cryptocurrency is an open field for fraudsters who benefit from the inexperience of society. Due to the lack of knowledge in society on this subject, it is easy for fraudsters to even fund inadequate projects. The organizers of such systems take advantage of the fact that more and more people are attracted to the cryptocurrency world through rapid results, and it is therefore much easier for fraudsters to make unreasonable promises and at the same time get enough interest in their proposal.

Like the "Ponzi" scheme in cryptocurrency


In the cryptocurrency world you can distinguish four of the most common types of pyramids:

There are some reg flags to help you determine if it is a fraudulent system or not.

Ponzi against pyramid system

There is a slight difference between a Ponzi and a traditional pyramid system.

A Ponzi scheme implies unprofitable fraudulent investments in a fake project. Gullible investors contribute their funds to a "manager" on one side of the Ponzi and get revenue that means the money from other gullible investors.

A pyramid scheme, in turn, implies a self-directed mechanism in which an investor recruits other investors and receives revenue from that investor, who must recruit another in the same way, and so on.

Both gullible systems involve people taking their income from other gullible people.

Some fishy crypto companies are based on a pyramid scheme. Beware of them and never get involved in their shady activities.

Cloud mining pyramid

If you see an offer to buy computing power or rent equipment for cloud mining, you should understand that mining today is very different a few years ago. Today the mining difficulty is much higher and the profit from the mining depends on a number of factors. Buying a share of such a pool costs quite a bit of money, they don't promise super-high incomes and are probably not even set at a fixed rate on your investments.

Referral program pyramid

The referral program can be a good tool, if only it is not a financial pyramid referral program. One such type of doing is called matrix marketing, in which a person has to gain income from himself in new investments by himself. Such a scheme is probably the easiest for the organizers and sad enough for the participants because to get your money back you need to win 5 people, for example. The 5 to get their money back will load 25 people in total, and then 125 people will have to drop their money for the first 25 and so on.

High-yield investment pyramids

Another common type of pyramid victim transfer agent is "experienced traders". In the same way, they promise ultra-high returns in a short time and in the long run, although in reality, this yield cannot even be predicted for tomorrow. You, of course, can win trade and even profit from trading, but this profit will not affect you. All payments to investors come essentially from new deposit funds, as it is known that even the best traders make unprofitable trades all the time. Conventional wisdom says that there is simply no such thing as a “win-only trading” strategy.

Scamcoins pyramid

Und eine weitere beliebte Art von Kryptowährung Pyramiden ist fake Kryptofunktionen, die als eine verbesserte Version von einem der cryptocurrencies und versprechen das große Potenzial erklärt.

Da die meisten der Kryptowährung Benutzer durch eine solche Perspektive angezogen wurden, ist es nicht überraschend, dass solche Angebote gefragt sind. Allerdings ist eine solche Projekte in der Regel, haben weder öffentlich blockchain, noch öffentlich zugänglichen Code, noch die Platzierung auf bekannten Börsen, die Mittel, höchstwahrscheinlich, sie nicht mehr als eine Manipulation zielen darauf ab, das Aussehen der ständig wachsenden Preise zu schaffen und Interesse an dem Projekt.

Wie schützen Sie sich vor den Pyramiden

Take Away

Ponzi and pyramid are different fraudulent systems that you can encounter in the crypto world from time to time. You must refrain from participating in these programs, no matter how attractive your proposal. By following the simple rules, you will always be protected from such a scam and never associate those with crypto. And remember, if you invest wisely, you cannot fall victim to fraudulent systems.