Monday, October 15, 2007

Signs of a Ponzi Scheme

Over the last year or so we have learned some of the tell tale signs of a ponzi scheme. These are signs that usually point to a program being a ponzi or pyramid scheme:
#1 - Tie-in of an original e-currency.
This is when the program actually releases their own e-currency. They claim its because they can have better control over withdrawals and be a safer, securer payment processor. The real reason behind this tactic is usually to create their own money. If an ecurrency keeps all the funds in the system, only recirculating its own currency, then they don't ever have to worry about paying out cash. They can actually make their own money. This means an extention of the ponzi schemes lifespan.
#2 - Blame all problems on others. If payouts are late, blame a hack View the rest of this article


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