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Offering bonuses for bringing other people into the program is a Pyramid Scheme tactic. Ponzi is specifically in cases where there's a portfolio manager or some
by alehul 9y ago
Offering bonuses for bringing other people into the program is a Pyramid Scheme tactic. Ponzi is specifically in cases where there's a portfolio manager or something controlling the entire operation and allocating returns to early investors through distributing the capital of the new investors.
- Buge 9y agoThat's what Pincoin did >The company first ran the Pincoin ICO, promising constant returns to investors >Investors have been told that they would enjoy a profit rate of 48 percent a month from their initial investment, and recoup all investments after four months.
- alehul 9y agoWere they actually given that profit rate from the Pincoin team, or promised that the coin's value would increase? This really seems like a mess of illegality either way haha.
- shkkmo 9y agoFrom the article: > Pincoin was particularly unique in that it offered bonuses for bringing other people into the program, a tactic that might sound familiar. The scammers paid out in cash until January when they began sending iFan tokens. Then, last month, the team vacated their fancy offices leaving only an oddly well-made – if incomplete – website in its wake.