Many altcoins such as FOMO BABY (FOMOBABY) promise to redistribute "tax" (membership fees) from newcomers to existing hodlers. Are these cryptos technically functional? Are they illegal pyramid schemes?
Never heard of the scheme. Membership fee from what? from a signals group? the name itself for that project isn't really that strong nor interesting.
I think that it will be just an another project that are good as a meme if it has been launched already. And good thing you've mentioned about illegal schemes, always be aware of those.