It is true! Te point you raised is valid and it should be taken into consideration because pyramid scheme would always want to offer promises that are too good to be true and that is a red flag.
How to spot a pyramid scheme?
- Thread starter Passiveearner
- Start date
Crypto is anonymous, so it is easy to use for fraud, there are many spots to identify pyramid schemes, users must be able to recruit many followers. business is complex and confidential, we also have to deposit money. promise of high profits,
- Thread starter
- #24
I have encountered many pyramid schemes that offered really low returns. They made it that way so that more and more people could trust them in the end. However, they eventually closed every thing and disappeared.
The people that are involved should build a reputable portfolio that is both traceable and tried and tested. There should be a system around that whole venture that is subject to scrutiny and can be held accountable. Money should not be in the authority of one individual.
I do not have experience with cryptocurrencies, so I am not qualified to state hot to spot related pyramid schemes.
Nevertheless, I possess some insights on pinpointing a pyramid scheme elsewhere. One of the telltale signs is the idea that the only way in which a member can earn more is by inviting a new member.
Nevertheless, I possess some insights on pinpointing a pyramid scheme elsewhere. One of the telltale signs is the idea that the only way in which a member can earn more is by inviting a new member.
If you are being offered high returns in a short time frame, it is very likely that it is a pyramid scheme. For instance, an offer where you are promised a principle return along with profits just in a couple of days, is surely a pyramid scheme.
- Thread starter
- #30
Both pyramid schemes and Ponzi schemes are the same thing. HYIPs are pyramid schemes and many cloud mining sites are also ponzi schemes. These terms are used interchangeably in many cases by many different people.
Pyramid Schemes generally sell products and only get profit from recruiting new members which will continue and increase in number. Pyramid scheme members will be coaxed into buying things regularly, even though they will have a hard time selling them. Whereas a ponzi scheme does not sell goods, but only promises investments with big profits, the first member will be paid by the second member and so on.
- Thread starter
- #32
I think that you are talking about MLM companies that tend to sell companies and force the investors to bring new investors so that they could buy the products. in return those new investors would bring more investors. This is a bit different from pyramid schemes that involve bringing new investors, even though they are same in many ways.
I don't want to have a longer discussion about the differences between ponzi schemes and pyramid schemes that are without foundation, we should be able to deepen this study by searching the internet or on the Google search engine.
- Thread starter
- #35
Certain pyramid schemes even offer hourly returns as well. This I just unbelievable. How can someone offer such returns so easily? Not even scalpers earn money that fast. So, this could be a huge sign of a pyramid scheme.
