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Theme: Stop calling everything a Ponzi

    • A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. Elements:
      • Fraud or illegal activity
      • Using money from new users to pay existing users
      • The promise of outsized returns
      • Lead by a charismatic salesperson
    • named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return within a few months for what he claimed was an investment in international mail coupons. Ponzi used funds from new investors to pay fake “returns” to earlier investors. Ponzi Schemes |