Ponzi Scheme

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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.


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

Modern Examples

  • Bernie Madoff
  • Bitcoin and similar blockchain currencies.[1]


  1. GILAD EDELMA, The Crypto Industry Is Getting Too Honest (2022-05-05) Wired https://www.wired.com/story/ftx-steph-curry-crypto-ad-ponzi-scheme/