What is Ponzi scheme

Ponzi schemes are scams disguised by their malicious initiators as profitable investments. The fraud usually pays off old investors with money he receives from newer investors, to fool them into believing that he/she is making substantial returns on their behalf in a short period of time. In reality, the scammer is just taking money from one person’s pocket and giving them to another, leaving the tail investors empty handed.

Ponzi scheme

Ponzi schemes are scams where the fraud usually pays off old investors with money he receives from newer investors.

Related terms

Phishing Passive management Private key Private sale Plasma Paper wallet

Join our free newsletter for daily crypto updates!