SEC-S17W3- "Let's talk about Ponzi scheme".
Hello my Scouts for friends members. I'm excited to share my entry on this amazing topic on ponzi. This has been a major problem which I too has be Victim of.
To begin with let's get the details on ponzi scheme. A Ponzi scheme is a deceptive investment operation that defrauds investors by paying them purported profits generated by fictitious business activities.
The scheme relies on a constant inflow of new investor funds to meet the promised returns to earlier investors. This creates the illusion of a successful investment while the organizer pockets a significant amount of the money.
The hallmarks of a Ponzi scheme include unrealistically high returns with little to no risk, an emphasis on secrecy regarding the investment strategy, and difficulty withdrawing funds.
These schemes are unsustainable and inevitably collapse when it becomes impossible to recruit new investors or when a large number of existing investors attempt to withdraw their funds.
Charles Ponzi, the scheme's namesake, is infamous for his fraudulent operation in the 1920s. He promised investors high returns on postage stamp arbitrage, a scheme that never existed.
Ponzi used funds from new investors to pay promised returns to earlier investors until the inevitable collapse of the scheme.
Ponzi schemes continue to be a threat to investors today. They can take many forms, and new variations emerge constantly. However, by being aware of the warning signs and understanding how these schemes work, investors can protect themselves from becoming victims.
Have I ever heard about ponzi schemes?
Of course yes. If your someone who has desire from making money from the Internet, you will probably come across Ponzi investment.
First time I heard of it was from my brother who was a victim of money laundry by then. He said he invested a huge some of money which generated remarkable interest but when he was about to withdraw, it crashed.
Since then I tried as much as possible to be cautious of online investing untill someone I trust so much make make join one, which didn't turn out well in my favor.
Have I been offered to invest in any of these schemes?
Just last year. I was presented with seemingly genuine online investments opportunities which I didn't think twice before joining. By the time I had the cash and investing was all I was eager for.
Two times victim to ponzi scheme. I have invested in online business two times and the results taught me a serious lesson. With the first investment, it came out so real and again it pays in my home currency, so I thought at least this was for real and jump in the train.
I should have Been wise before the second attempt but since I didn't invested a significant amount, I didn't fill it that much.
For the second time, I was introduced to a ponzi by name "movii technology". This came from my best friend who constantly pursue me to join on daily basis. First I decide to give a trial of $50, after a month it doubled the amount and I withdraw without problems.
So I was like okay. Let me do more. Step up to $250 and the later to a total of $1750 through cumulative reinvestment techniques. After two months of hard work, I made a withdrawal of $500, still no problems.
At least I had hope this one will last. On the 14th of March 2023, I lunched a withdrawal of $3000 which was supposed to be my first successful withdrawal, unfortunately it started misbehaving on that same day, withdrawal stalled and we we told there are working to solve the problem through customer support.
Finally around the 20th of March, the website finally disappeared from the Internet. We well left frustrated and the worst part is I got complicated by those who joined under me. So not only do I have to cry my losses but compensate them from my pocket.
Do I know how to detect Ponzi schemes?
After my downfall to ponzi, I decided I'm not falling victim again to this scheme. So I decide to investigate the various techniques to identify a ponzi, finally came through a website on Google known as #ponzitracker
Check the link here
With this website you are able to traced the date to which the ponzi was released, it protocol and domain. If it's legit, they will tell you. If it's module is based on constant referrals, then it's a red flag.
From my experience, I will advise you to be cautious and make sure you use the the tracker above to check of all ponzi schemes. Other methods are use. Beware of business which requires more referrals to make money, or constant reinvestment to make more profit.
Do I think Steemit is a ponzi scheme?
There's debate about whether it functions like a Ponzi scheme.
Here's a breakdown of the key points:
- Similarities to Ponzi schemes: Steemit rewards users with its cryptocurrency, Steem, for creating content and upvotes. This can attract users hoping to make money, potentially resembling a Ponzi scheme's focus on recruitment.
- Differences from Ponzi schemes: Unlike Ponzi schemes, Steem's value depends on user activity and adoption of the platform's cryptocurrency. There's also no requirement to invest money to participate.
To conclude ponzi are a serious threat to our funds when it comes to investing. Make sure before you get to do any business online, you must have made a proper check to ensure you are not a victim of scam.
Credit to: @rafk
Thank you, friend!
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Guao que lamentable que hayas perdido esa cantidad de dinero tan grande, es que los sistemas Ponzi son realmente peligrosos porque te hacen creer en ellos dejaron que hagas algunos retiros de dinero para generar confianza para luego cuando ya tienes suficiente dinero invertido te dejan sin nada.
Siento mucho que hayas pasado por eso y te entiendo yo también lo viví.
En Steemit las cosas son diferentes desde el inicio primero porque somos responsables de nuestras cuentas que creamos absolutamente gratuito además no piden ni inversión ni referidos.
Buena suerte con tu entrada.
Greetings dear friend..
When I was going through your post, I understand how you feel to loss such amount of money, I was once a victim as such, I vividly understand how you feel.
Ponzi scheme is a fraudulent investment scheme that uses money from new investors to provide returns to investors. These scammers often lure investors with the promise of high returns and little risk.
Steemit is a legit business place for every one, It good now that you have a tracker to identify all the fake business.
I wish you success in this contest.