Quote from: odolvlobo on February 07, 2025, 07:29:34 PM

Quote from: magick on February 07, 2025, 05:44:52 PM

A Ponzi scheme is an investment scam designed to provide significant returns to earlier investors ...

A Ponzi scheme is not designed to reward early investors. Its purpose is to enrich the operator.

A Ponzi scheme may pay high returns to early investors in order to convince more people to invest more, but eventually the operator takes all the money except for the small portion paid out in returns.

You are right the main purpose of a Ponzi scheme is to serve the person or group behind it, whom we can call the <operator> Most of the returns go back to the operator<or else why would they run such a scheme? Cheesy

> but my focus is on how it works. To keep the scheme running the operator must continue paying early investors to build credibility and attract more investors it's all about sustainability. The cycle will continue as long as new investors keep coming in, but the Ponzi will collapse when there aren’t enough new investors.