A Ponzi scheme is a system that promises to pay early adopters using the money made from late adopters.
SCAMMER tells person A to give him $10 and promises him that he’ll be rewarded with $20.
SCAMMER tells person B to give him $10 and promises him that he’ll be rewarded with $20. SCAMMER takes that money and gives $7 to person A and keeps the remaining $3 for himself.
SCAMMER tells person C the same thing he told the others, but this time person A chimes in and says “This is great! I’m already seeing returns!”. Person C jumps at the opportunity to give the SCAMMER $10. SCAMMER gives person A $5, person B $2.50 and keeps the remaining $2.50.
This process repeats itself until one of the following happens:
1.) The SCAMMER runs out of people to scam (people stop investing money).
2.) People get wise to the fact that it’s a scam and the operation is shut down.
Scenario 1 is a really interesting concept. Imagine if you had an unlimited number of people. The operator of the pyramid scheme would always be able to payout on the promise that was made, because there would be an infinite amount of money flowing into the system. The only time a problem occurs is when the money stops coming in.
A ponzi scheme is a marketing scam-scheme in which in exchange for your money you get huge returns which are paid from new commers money.
For example you give me 100$ and i promise you 150$ in 4 weeks. The offer is so good that after you give me the 100$ you tell all your friends and they come each with 100$ and i offer them the same promise. After your 4 weeks are over i give you your 100$ back + extra 50$ (which are paid from your friends money) and so boosting my popularity (you go tell more people about me). This keeps on and on until day i just run away with the money.
The biggest Ponzi scheme here has been MMM, which has really made most prople richer as it is. There has been a lot of Providing help and Getting help going in so many Whatsapp groups, which is actually done by the group admin. However, thee has been a report of scams going on in the whatsapp, you cant just help the fact that people often get greedy and look for more money.
I have seen lots of requests posted everyday on Fiverr about people wanting to create websites and asking for scripts such as the one of MMM, icharity, giversforum, Zarfund, Twinkas and so many more, so as to be able to scam more people. Ponzi schemes will not stop anytime soon and it is here to stay. People will continue to lose money, while the earlybirds get richer.
The Cyrptocurrency Ponzi
The reason onecoin is such a smart ponzi scheme is becuse its layered on a multi level market scheme. A multi lever market scheme is a smart way to sell a product. Avon/l’oreal etc uses it to sell beauty products. Basically someone gets you in the scheme and tells you to sell shampoo and the person who introduces you gets 10% of your sales. Also on your turn you can introduce other people and you get 10% of their sales while the one who introduced you gets 10% of your 10%.
Multi level marketing is a great and smart legitimate way to sell a product but the thing is onecoin doesnt sell anything. So u have to buy a package to get introduced in the scheme and convince others to buy the package and introduce them into the scheme in order to make profit and the people you introduced at their turn will have to convince other people to buy package to make profit and so on so forth, but the package is just a gateway into the scheme and nothing more. Its not an actual product.
Longer one coin scam scheme exists more people will lose money. I still dont know and not sure which cryptocurrency is set yo make its mark in the cryptoworld after Bitcoin. I so much believe that Trumpcoin has the potential, this coin owned by Donald Trump. I think he will make everything possible for the coin to make its mark. Research is still ongoing just to ascertain its potential in years to come.