Is cryptocurrrency a ponzi scheme?

[rby]

Crypto is not a Ponzi scheme, but that does not, however, rule out the fact that there are lots of scam projects disguising themselves as genuine coins, where many crypto enthusiasts (especially newbies) have become victims by investing in those scams.

Mostly, people fall victim to these scams due to greed, ignorance, and lack of knowledge. There are good and genuine cryptocurrencies out there, a simple research will open the eyes of prospective investors to the right coins

[Z-tight]

There are a lot of cryptocurrencies that are ponzi schemes and scams, just take a good look at all the memecoins in the market, a large part of them are useless scams and if you buy them you are sure to lose your money. However, BTC is not a ponzi scheme and that is very obvious for everyone to see.

[tabas]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

Those that are able to withdraw are their accomplices if not they are also it. If they are intending to scam through these projects, they'd scam them out and they are all fooling these people. Many are new to the crypto market and that's what they are capitalizing about. Those that are new to it are likely getting scammed but if you have been here for a while, you'll never be scammed if you're aware of most of the things that you know about them.

[Asiska02]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

When you give your money out to some kind of people to help you and trade, just know that it is your responsibility to take in the losses that will be incur from there. Giving your money out to trade for you is just like giving it out to gamble because the likelihood of you getting the money back is very low. Every scheme that comes up like this are usually keeping in touch with their people and make the first set of people to get to withdraw their money in full and not look like scam. When they’ve gain the trust of more people, they’ll then run away with the money and close down. The trading market is not something easy and you can’t win 100% of the time you trade, so basically everything is all risk.

[TomPluz]

By its pure definition of a cryptocurrency, it will never be a Ponzi scheme but there is no question that there are many programs who are just using cryptocurrency and even fake cryptocurrency (like the famous OneCoin scam) on their programs which can later on turn out to be outright scams and failures. And they are appealing to human greed since the returns can be so good but since they are not sustainable they will surely go down like a balloon losing air in the middle of the field. Now, am sure many of us are even victims of these scams and we already learned the lessons: NEVER ever trust anybody in this industry that will give you a very attractive income by just giving your hard-earned money to them.

[Stuart]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

Every Ponzi scheme goes with the same principles or pattern of operation. When they start up, some even go as far as making advertisement to attract more participants, most times, they will add up a referral program, and add bonus, all these will work well at the start, when they have gotten more registrants, to disappear, they will start with website upgrade as the first excuse and all withdrawals will be paused, but deposits will still be made open and functional (which do make me ask, is the deposit part not part of the site upgrade?) and at the end of it all, the site is no longer found.

At the first launch of the site/scheme, the first intakes are those who makes profits from it, those who register later on becomes the scape goat. In my area, we do call it Rob Peter and Pay Paul.

[Roseline492]

Those that are able to withdraw are their accomplices if not they are also it. If they are intending to scam through these projects, they'd scam them out and they are all fooling these people. Many are new to the crypto market and that's what they are capitalizing about. Those that are new to it are likely getting scammed but if you have been here for a while, you'll never be scammed if you're aware of most of the things that you know about them.

Judging from the perspective of people who also has similar experience not all the people who withdraw from them might be one of them because it could be something the scammers plans to be functional for some period to gain people's trust and after having the traffic on the platform they decided to scam people but those who might withdraw their money before then are the ones who gets Lucky because they have withdrawn their money from it, funny enough something that's realistic is hard to see people investing as they did on something that might result to Ponzi.

[MrSpasybo]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

Well, I'll chime in on this topic with my understanding, aiming to provide a simple and clear perspective.

Crypto is just a financial tool, it's not related to the nature of any model. Crypto isn't inherently good or bad, the outcome just depends on people.

Crypto has a lot of utilities in cross-border money transfers, value storage, data storage, resource sharing... but it can also be misused in fraudulent schemes like Ponzi.

Don't forget MLM projects like Bitconnect back in 2017; it was a typical Ponzi scheme. Don't forget rug-pulls in the memecoins trend. Don't confuse a financial tool with financial models ^^

[taufik123]

-snip-
Don't forget MLM projects like Bitconnect back in 2017; it was a typical Ponzi scheme. Don't forget rug-pulls in the memecoins trend. Don't confuse a financial tool with financial models ^^

The most remembered MLM of all time in crypto and many victims lost their money on Bitconnect.
It is indeed only a Project that utilizes crypto as a financial tool that is used to reach more users who are in crypto, so it is not the crypto that is wrong but the project that is created, Crypto is just a tool or platform that is used. But for the layman will just say that crypto is wrong and let the project grow, All can create a crypto project easily but will not guarantee anything.

[Z-tight]

NEVER ever trust anybody in this industry that will give you a very attractive income by just giving your hard-earned money to them.

Anything that is too good to be true is most probably a scam. There is a reason why people keep investing in memecoins, even when they know how high the chances of them being scammed is, it is because they believe they can be lucky and one memecoin will make them rich, lol. It is better to buy a coin with utility, than to buy a shitcoin and be hoping on luck that may never come.

[bayu7adi]

Then why do you say "cryptocurrency is ponzi" when in the context you are talking about "some Chinese people use crypto to cheat with ponzi schemes", WTF, the title is very inappropriate for the topic...

And you need to know what ponzi really is, I quote from google gemini...
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.

yes the point is that early investors get profits from the arrival of new investors, and that is not related to the context you are talking about.... so actually, do you know clearly, what is ponzi?

However, some people also consider crytpo as ponzi... yes, some people think that those who come to cryptocurrency first will get bigger profits than those who come late... it's almost the same as ponzi, right.... more simply, Bitcoin owners in 2013 will get bigger profits than investors who come in 2023.... yes, but there is no looting there, maybe those who consider this ponzi are seeing it from a strange perspective too...

[Faisal2202]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

Did you hear about Treasure NFT and other similar projects that promised 100% profits and even gave profits for some time, but now they are delaying withdrawals? But in the end, we all know how these Ponzi schemes work, they will fly away with people's money.

We should keep ourselves safe from these online scams. Anything that is too good to be true on the internet, don't believe it. If you are an expert, then maybe give it some try, but with proper precautions otherwise, don't even think about them.

[CryptFurt]

Cryptocurrency is entirely different from Ponzi Scheme, and it is painful that some beginners are still falling for the trick of 'paying $200 let me help you trade and you will make $20000 in a week' all these are lies from the pit of hell, i am just coming from Twitter to see how much Chinese ponzi scheme called Cbex stole from some people as they have allegedly closed down. These people told them to invest and they will help them to trade and be able to withdraw, some were able to withdraw, while some could no longer withdraw again. Please be careful out there if you can't trade by yourself don't trade at all.

Did you hear about Treasure NFT and other similar projects that promised 100% profits and even gave profits for some time, but now they are delaying withdrawals? But in the end, we all know how these Ponzi schemes work, they will fly away with people's money.

We should keep ourselves safe from these online scams. Anything that is too good to be true on the internet, don't believe it. If you are an expert, then maybe give it some try, but with proper precautions otherwise, don't even think about them.

I feel for those who fell victim to the Ponzi schemes. Only if people can make thorough verification of these projects before investing, then the victims won’t be much. But most people have allowed themselves to be blinded by greed.
I actually didn’t hear about Treasure NFT, but whenever a project promises 100% ROI, it’s a red flag to me.

[tabas]

Those that are able to withdraw are their accomplices if not they are also it. If they are intending to scam through these projects, they'd scam them out and they are all fooling these people. Many are new to the crypto market and that's what they are capitalizing about. Those that are new to it are likely getting scammed but if you have been here for a while, you'll never be scammed if you're aware of most of the things that you know about them.

Judging from the perspective of people who also has similar experience not all the people who withdraw from them might be one of them because it could be something the scammers plans to be functional for some period to gain people's trust and after having the traffic on the platform they decided to scam people but those who might withdraw their money before then are the ones who gets Lucky because they have withdrawn their money from it, funny enough something that's realistic is hard to see people investing as they did on something that might result to Ponzi.

Yes, that is a big possibility that it is part of the plan. To make others withdraw and these others are legitimate people so that they can have some people that will back them up proving that they're a legitimate platform and they've paid several payouts to their people. It's a kind of tactic and strategy to make the reviewers and watchers believe that they're genuine and not gonna scam. But it's a way to trick people.

[albon]

Why would you call the entire cryptocurrency a Ponzi scheme? Of course, there are many people who use crypto to defraud with Ponzi schemes but we can easily identify them. For example the misuse of an Initial coin offering or ICO is one method that is characterized by a Ponzi scheme. In this type of scam, the investor loses all of his money and there is little chance of recovering the money. A common exception is the pump and dump scheme, which is very similar to a Ponzi scheme. Also, Ponzi schemes which ultimately end with the operator fleeing come into the market only to steal investors funds and defraud them.