With Ponzi schemes, investors give money to a portfolio manager. Then, when they want their money back, they are paid out with the incoming funds contributed by

With Ponzi schemes, investors give money to a portfolio manager. Then, when they want their money back, they are paid out with the incoming funds contributed by later investors. With a pyramid scheme, the initial schemer recruits other investors who in turn recruit other investors and so on. Late-joining investors pay the person who recruited them for the right to participate or perhaps sell a certain product. Call Tether whatever it is but it's neither a pyramid scheme nor a Ponzi one. The funny thing is that people don't really understand that banks are not able to cover in case everybody wants their money at the same time either and their dollars are stretched as much as Tether is. If people have confidence in Tether it will hold, if people don't it will crumble. [0] https://www.investopedia.com/ask/answers/09/ponzi-vs-pyramid.asp https://www.investopedia.com/ask/answers/09/ponzi-vs-pyramid...