That's basically correct, I also have friends who do these ponzi, but in my case they are aware of the fact that these are scam but also with the knowledge that it pays off for the first few persons so what dey do is dedicate their time to catch some of these ponzi schemes early so they'll get payed and exit the platform immediately. To be honest they have been doing great but there are also times we're after they put in their money the entire system crashes, but when I ask they always tell me that they are still in profit irrespective of their recent loss. Well I've not been a fan of these kind of things being aware of the fact that it's scam and will crash someday.
While that's true. The fact still remains that you just won't be able to know exactly when it'll crash, some believes that it pays off the first few persons, but how then would you know you're actually among the first few, how would you know you're among the first comers and now the other way around, this uncertainty makes Ponzi schemes very risky, and there are actually those that targets everyone, even those that are newcomers, so it's best to stay away completely from such high risk investments.