What are the Characteristics of a Ponzi Scheme?

[Suba]

Ponzi scheme investments are not only found on the internet but also many of us find offline in our daily lives, where Ponzi scheme investments promise high profits and very minimal risk or even zero risk. Initially, this investment platform pays the first investor from the second investor's deposit and so on until the desired target is achieved and finally the manager of the Ponzi scheme investment platform runs away. Many people lack financial literacy so they are easily deceived, so one way to avoid Ponzi scheme investments is to know the characteristics. So in your opinion, what are the characteristics of a Ponzi scheme?

 

[Min George]

A ponzi scheme would promise you huge rewards and they don't have any value they offer to generate revenue.

 

[Augusta]

Investors are promised consistently high returns, even in volatile markets, which is unusual.Lack of Transparency:
The investment's actual mechanism is often vague, obscure, or impossible to understand.

 

[King Belieal]

Ponzi schemes don't have products to sell. You would just put in money and somehow, your funds would multiply.

 

[Augusta]

Ponzi schemes may involve unlicensed individuals or firms. They just operate without legal backings

 

[eLdavis]

One of the common characteristics of a ponzi scheme is the referral system. You won't be able to climb ranks and earn more if you don't refer.

 

[Nomad]

The promised rate of return is too good to be true, you will have to recruit other people and make them invest for you to earn. These are some characteristics.

 

[Kross]

The promised rate of return is too good to be true, you will have to recruit other people and make them invest for you to earn. These are some characteristics.

Some ponzi schemes nowadays don't even need you to recruit people to earn. Especially the ones that tells you it is based on trading.

 

[Nomad]

If you only see positive reviews and no real criticism, that’s a red flag. Ponzi schemes, HYIP , and overpriced products often use this trick. Always approach online reviews with caution and do your own research.