No Ponzi schemer tells anyone exactly how it works. The purpose of a Ponzi scheme is to trick people, to take the money and run. Votes: (Mitchell Zuckoff)
We all have business secrets and we do not want to tell other people exactly how we operate. The reason is obvious, if we do, they might copy it and do the same. That is why the recipe of Coca Cola is a secret, and the list could go on.
But, if you think about the concept of a Ponzi scheme, then it is even more shady. Not only do they hide the recipe, but the main problem is that there is no recipe at all. But, they hide behind the fact that there is a hidden recipe, but they cannot share it, because then you would copy it. So, they do nothing, but hide behind the fact that it is hidden, and that is why you cannot really find out the truth about it.
No Ponzi schemer tells anyone exactly how it works. The purpose of a Ponzi scheme is to trick people, to take the money and run. Votes: (Mitchell Zuckoff)
In that way, when you invest in such a concept, you will be tricked into believing that something is really happening, but while you are doing this in your best faith, the owners take your money and run. Of course, they do pay their initial investors for a time, but it quickly comes to an end, and then you better take profit before that is happening, because if not, you will end up with nothing left at all.
The most famous crypto Ponzi was Bitconnect, a crypto that actually entered the top 10 list of cryptocurrencies based on its market cap. But, then the curtain went down and Bitconnect disappeared... and so did the wealth of the people who had invested.
Are there any new Ponzi crypto schemes running? There is a different between a Ponzi and a rug-pull concept. A rug-pull is often based on a real token, maybe also with a real use-case, but then the owners just dump their own tokens and empty the liquidity pools for the other part of the pair... and the people are left with tokens worth nothing.
A Ponzi doesn't have a product and it is deemed to fail, no matter what. Many people are worried that Ring Financial might be a Ponzi, but we have no clue about that yet. I guess time will show.
No matter what, do your own research, look into the teams of the concepts that you are investing in... and be careful.