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Ponzi Scheme News
A Ponzi scheme is an investment scam which involves convincing victims of high return rates and small risks using fabricated reports made with returning the revenue for older investors with the money of the new ones. Companies that engage in Ponzi Schemes are only working on attracting new investments without generating any legitimate product. This scheme is named after Charles Ponzi, a Italian con artist, who performed such a scheme in 1920s in the US, costing his investors about $20 million. However, Ponzi’s scam wasn’t the first of its kind, though it was one of the largest. A Ponzi scheme is similar to a pyramid scheme and is performed to this day in different variations. For example, scammers have employed cryptocurrencies and ICOs to perform Ponzi schemes, Bitcoin is often called a variation of a Ponzi scheme and economic bubbles of different stock assets often take on a form of a Ponzi scheme, blowing the real value out of proportion.
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