Cryptocurrency: Ponzicoin shuts down

Caveat emptor. This is especially true in the Internet era. Anyone over 40 has stories of the "dotcom" days, when startups with great ideas but no financial backing behind them were being bought up at hyperinflated prices that crashed hard when folks realized they were buying junk.

And we've all heard about pyramid schemes, Ponzi schemes, etc.

So when an ethereum based cryptocurrency called "ponzicoin" launches, and PROMISES you that you will lose money, why would you buy? Yet that is exactly what Rishab Hedge did, netting 250 Ether (about $25,000 USD) before shutting down the site because things had gotten "crazy out of hand".

OK, so you're shaking your head, wondering how people could fall for that. But it gets worse: in 2014, a developer did the EXACT SAME THING, netting approximately $2.2 million before he took the money and ran.

It's easy to laugh at these things, but the truth is, it can quickly undermine confidence in serious cryptocurrencies. So, if you are investing in cryptocurrency, please, do your due diligence and research the offerings.

And for goodness sake, if someone launches a product calles "ponzicoin" again, PLEASE don't take the bait!

(source: http://www.techweez.com/2018/01/26/ponzicoin-crypto-scheme/)