How to tell if a cryptocurrency project is a Ponzi scheme | Crypto Craft

  • How to tell if a cryptocurrency project is a Ponzi scheme

    From cointelegraph.com

    The crypto world has experienced an increase in Ponzi schemes since 2016 when the market gained mainstream prominence. Many shady investment programs are designed to take advantage of the hype behind cryptocurrency booms to beguile impressionable investors. Ponzi schemes have become rampant in the sector primarily due to the decentralized nature of blockchain technology which enables scammers to sidestep centralized monetary authorities who would otherwise flag or freeze suspicious transactions. The immutable nature of blockchain systems that makes fund transfers irreversible also works in the scammers’ favor by ... (full story)

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Goat
Aug 26, 2022 3:29pm
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If you can't mine it, it's a pump-and-dump. If you have to recruit people, it's a pyramid. And if you're guaranteed an APY over 4%, it's a ponzi.

Simple stuff, but there's a sucker born every minute.
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