What is a Ponzi scheme?
A Ponzi scheme is an investment scam that pays a constant rate of return to investors, regardless of the actual performance of the investment. This is achieved by paying returns from the contributions of new investors, rather than from profit generated by the investment itself.
It's a pyramid scheme in every sense, but don't worry, we're not a pyramid... we're a Ponzi!
- Recruit new investors with promises of high returns.
- Pay returns to existing investors from the money of new investors.
- Repeat until the scheme collapses or you run out of new investors.
Don't get caught in the Ponzi scheme of life!
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