Ponzi Scheme

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Revision as of 14:27, 7 May 2022 by Tom (talk | contribs) (Problem)

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Full Title or Meme

A scheme where new investments in a scheme are merely used to pay off the older investors.

Problem

At some point the number of new investors is insufficient to pay off the older investors and the scheme collapses.

References

Modern Examples

  • Bernie Madoff
  • Bitcoin and similar blockchain currencies.[1]
  • GILAD EDELMA, The Crypto Industry Is Getting Too Honest (2022-05-05) https://www.wired.com/story/ftx-steph-curry-crypto-ad-ponzi-scheme/