*SEC-S17W3- "Let's talk about Ponzi scheme".

Greetings! I hope everyone is doing well and enjoying their life with family and friends by the Grace of Allah Almighty. Today I am here to participate in SEC-S17 W3 contest held in Scouts y sus Amigos. The topic of the contest is "Let's talk about Ponzi scheme". So lets start!

Yes I have heard about Ponzi schemes and since I joined crypto world. A ponzi scheme is a type of scam where people are promised high returns on their investments. Instead of investing the money as promised in the road map of a project, the scammer uses money from new investors who are like us or high investment people to pay returns to earlier investors. This creates illusion of profitability and encourage them to bring more people.

Over time as more people join and the scheme grows, it becomes unsustainable. Eventually it collapses when there are not enough new investors to pay returns to the exisiting ones. Many people end up losing their money when the scheme falls. Only few at the top or the first investors benefit from the money. I am a victim of many ponzi crypto schemes and all because was I got hungry of making my money double to triple within few days.

Yes when I first started crypto trading, I got trapped in the profits screenshots of many people. So I decided to join different tokens which were not listed on any exchange except some ones like Pancakeswap, bakeswap etc. I got caught up in the promises of quick and high returns. I also received advice from so called crypto experts that they will help to get high profits if I join their premium group. But later found out they were fake and earning from premium groups fees and know nothing about crypto.

It was a tough lesson to learn but it taught me the importance of being cautious and doing thorough research before investing in anything especially in crypto. I have lost almost $2,000 in crypto which is not big amount for many but for me it was a lot of money. Now I am only working on Steemit because it is a safe platform and Steem coin is not ponzi scheme.

Yes there are some red flags that can help you detect Ponzi Schemes. One of the main signs is the promise of high returns with little or no risk. If an investment opportunity guarantees unusually high returns then its a major warning sign. Another indicator is the pressure to invest quickly or keep the investment a secret as scammers often try to create a sense of urgency to prevent you from doing any research about the project.

Additionally, Ponzi schemes often rely on new investors to pay return to early investors. So be aware of any scheme that forces to bring others if you want to earn points or to get money. Always research about the company and check if they are registered with regulatory authorities and seek advice from trusted financial professionals before investing your hard earned money.

Steemit is a decentralized social media platform where users can earn cryptocurrency rewards for creating and curating content. While some people have raised concerns about its business model and the sustainability of its reward system. But its important to note that Steemit is not a Ponzi scheme. In a Ponzi scheme, returns are paid from the investments of new participants, but on Steemit rewards are given to users based on their quality and popularity of their content and not solely on new investments.

I have been working on Steemit since 2017 but left it for few years in between due to not understanding the platform much and job responsibilities. But from last 2 years I am working on Steemit and found no problem on the platform that makes it a Ponzi scheme. There is no guarantee for higher returns plus votes are also not guaranteed that means it is a safe platform on work on.

This is all from me for the "SEC-S17W3- "Let's talk about Ponzi scheme"." I invite @abdullahw2, @neelofar, and @abdul-rakib to participate in this contest.