[ESP-ENG] SEC - S17W3 | "Let's talk about Ponzi scheme"
Hello my dear Steemians,
Today I wanted to invite you to this challenge by Scouts y sus Amigos Community:
Let's talk about Ponzi scheme |
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Ponzi Scheme is something that I was not aware what this fancy word mean but I came across of such fraud. The definition of ponzi scheme means that when someone is taking investment from people promising to pay back higher percent to early investors.
Of course, who does not want to earn more from what they invest? Understandably e everyone and if such companies starting to pay some "early bird" then more people will join them with hope of also being able to get their profit.
Commonly naive people who work hard to earn their money have a hope that with this scheme they will be able to have a good return and will be able to pay for their families and children.
One example of such situation I can bring up here too.
We all know that such fraud tricks work well there where people are in need and it was the time in early 90's in ex-USSR the time when economy was weak and many lost their jobs, people were on streets without resources and did not know how to support their families.
Once it was a company with the name consisting of three capital letters M, M, M that was made of the first letters of three people who created this company: two brothers Mavrodi's and Olga Melnikova, they started advertising people to invest their money with annual return up to 3000%
I still remember that time when living in that time and my parents heard that both on television and from other friends and neighbours. It was a lot of advertisement using popular people, who were well known to people living there.
I also remember that many sold their houses downsizing and the excess of money from sell they invested into "MMM" buying their shares. I recall how my mother wanted to buy the shares too but we did not have any saving that we could invest. Retrospectively I am glad that it was the case.
The people who invested on early stage also got good return because it was necessary to show that it is possible to earn via this scheme. Within two years they earned US$1.5 billion. But in 1994 the founder was charged for tax evasion and in 97 he announced bankruptcy and himself left country. The people lost all their investment
Everything that offers incredibly high % of return of your investment is too good to be truth. In such situation one should be very careful. Before investing, everyone should search for more information and also invest only so much that if you loose that will not affect you financially.
No, it is not, because you do not necessarily need to invest in order to get good return. It is like a job, you spend your time in order to read, create a nice original post and depending on how much of that you invest you will get appropriate reward.
So everything depends on you and nobody is promising anything here but there are few possible way how you can get best return for your invested finance but also for your time and work.
I would like to invite @davidad, @seikoh, @yulexys21 for this challenge
Saludos.
Triste realidad la que han vivido muchas familias y personas al creer es este fraudulento sistema de inversión que al final solo tiene un propósito y es estafar.
Yo fui víctima de un Sistema de esquema Ponzi y ciertamente se puede reconocer fácilmente cuando te piden solo una inversión con utilidades muy altas son hacer nada, además de tener que reclutar personas para que sigan invirtiendo.
Steemit es la luz al final del túnel a menos para mí, porque gracias a Steemit podemos tener la garantía que lo que se produce en términos económicos en personal y seguro está en la plataforma.
Éxitos, un gusto leer su participación.
Hi Adrian, I can imagine because my parents were very close to get involved in such scheme, we all would like the best for our families and for future of children and of course, such promising project makes is very tempting to try and maybe to get profit. We all learn from our experience. Steemit is open and we know what to expect, that is better chance to for people to get what they earn.
Steemit is not a Ponzi scheme in the traditional sense, but... New Steem and SBD are constantly being issued on the basis of - nothing. Where do they come from? If it's just about price fluctuations in crypto trading, it's similar to deals on the stock market. But if there was no more blogging, there would be no more voting... We need an ever wider range of vote recipients in order to maintain the steady production of Steem. It's not that far away from Ponzi schemes after all... Ponzi is not inherently a scam. It only becomes so through the criminal energy of false promisers.
Yes, there are always people who know where and how to use the moment for their own benefits. I think for people who just join Steemit it is difficult to understand everything because when we started it was the time when the majority people started so we learn from beginning on. One of the different from classic ponzi scheme is that people can start without initial investment but also the more users will be the lesser the reward poll is.
Hello boss, reading your entry have shown me you are always careful when it comes in investment, it is actually nice and the best idea to do because right now there are so many fake investment company and which we have to be careful. I wish you success
That is the most important always to be careful with something that promising much for less :)
Да, веселые были времена....
Хотя... криптовалюту многие тоже называют пирамидой и на самом деле здесь тоже есть много подобных мошенников.
Да, времена когда некоторые быстро стали богатыми другие много чего потеряли за короткое время
You are right, these tricks work but as people get wiser they avoid them. However, the internet has the power to reach new users every day they still find several new ones whom they can net more and more.
There are many who are elderly and do not know much how the things work in Internet, they are easy to trick out, the same with my mother, need always to check if there is anything that she came across. But also there is no guarantee that we are save from such situation.
Holaa amiga, realmente no conocía esa historia que contaste sobre la empresa de las 3 M y al ver el año en que sucedió nos podemos dar cuenta de todo lo que durado este tipo de esquema y que en la actualidad sigue muy vigente sobre todo en países que pasan por problemas económicos ya que ven muy atractiva esas ofertas. Espero que en algún momento estas estafas terminen y dejen de perjudicar a las personas.
Saludos y bendiciones!!
Yes, the story with 3xM started quickly and reach a highest peak very quickly, the people behind made a lot of money and gone within few years. I also hope that people will be more attentive clever when deciding about investing their money in any projects.
Reminds me of Bernie Madoff. Reminds me of a lot of different Ponzi Schemes… both in conventional financial markets and crypto. When everybody's making money, most don’t look at it closely, but when the bottom drops out, and credit and money becomes scarce, that is when people start scrutinizing these assets more. But by then, it's too late, the dumb money is already in, and the smart money has already moved out. This is why I think credit should not be too inexpensive…and regulation robust. If not, it leads to bubbles and poor financial decisions…ponzi schemes are one of them.
The bottom line, if you're getting an annual return more than 5.25% (the federal funds rate), that asset should be scrutinized. Federal Funds Rate is a benchmark of a safe return on your money. Investments are a beautiful way to build wealth. And good assets can build a lot of wealth well above that 5.25%. But bad assets are also a fast way to lose that wealth. Like you said, if someone is offering "too good to be true" returns (like 30% annual rate), or they're promising you that the asset is going to the moon, and the information on this asset is less than transparent…be wary… be very wary.
Most money is lost to these scams because people did not scrutinize where they were putting their money. Most money that is lost, is given, not taken. And like you said, they usually go after the most desperate people.
And MMM, that once filed for bankruptcy in 97, is now MMM Global, another Ponzi scheme, established by the same guy, Sergei Mavrodi, and now he targets developing countries instead.
https://en.wikipedia.org/wiki/MMM_(Ponzi_scheme_company)
https://en.wikipedia.org/wiki/MMM_Global
I absolutely agree with what you are saying, often we do not investigate into what and how it works, sometimes we just trust our friends or maybe some influencers in Internet. Nowadays everything that offers quick and good return should make us cautious.
I also have noticed that MMM had been in Africa and Asia, those guys have no conscience and sympathy.
Greetings dear friend, lt is my delight to go through your post, your presentation is on top notch.
From your post, l can see that you have any clear knowledge about Ponzi scheme, MMM was on the popular Ponzi scheme, in which million of people lost their money and some go in dept. Because of this business.
As you rightly said, lt wise for us to carefully care out investigation before investing into any business.
Steemit platform is far far from Ponzi scheme, we only received rewards through hard work, consistency and patience.
I wish you success in this contest.
The experience of MMM understandably made us learn a lesson, I believe many after that will be more careful and not so naive.
Thank you, friend!
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