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?
Technically if those devs are pseudonymous, it wouldn't matter if they are illegal or not, even if they are ponzi. You shouldn't invest them anyway. But what i mean is that there's no way that any officials would like to take a look at the legality of some random token that isn't really public offering. There are just too many of them to crack down.