A Ponzi scheme pays earlier investors with money from later ones. No real business generates the returns; there is only a stream of new deposits. It works until new money slows, and then it collapses all at once - usually right after the loudest promotion.
In crypto it wears new clothes: "staking" with fixed daily returns, trading bots nobody can inspect, referral levels that pay you for recruiting. The questions that expose it are old ones. Where exactly does the yield come from? Can I verify it? What happens to my returns if nobody new joins? If those questions get hype instead of answers, you have your answer.
💬 What's the most unrealistic "guaranteed return" you've seen advertised?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/ponzi-scheme
Next lesson: Honeypot tokens: easy to buy, impossible to sell
Trading crypto from Dubai since 2019.
#Ponzi #ScamAlert #CryptoSafety