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Ponzi schemes sometimes work by giving early/influential customers the advertised returns as taken from the newer customers' subscriptions. This creates a viral
by ronaldx 13y ago
Ponzi schemes sometimes work by giving early/influential customers the advertised returns as taken from the newer customers' subscriptions.
This creates a viral effect, but the customers suckered in by the viral effect will get nothing.
Based on the offered rate, I suspect this scheme doesn't plan to be that sophisticated.
If the advertised rate is high but not extraordinary, customers don't typically care exactly what is happening to their money (for example: what is your bank doing with your money right now?).