Ponzi scheme is still in place and goes with various names. The multi level networking is also some line of ponzi scheme, where only few people, who have a lot of people in their downline earn and rest of the people lose money.
When and how did Ponzi scheme started?
- Thread starter Mika
- Start date
Yeah, even those multi level networking fall under ponzi schemes. This is because some people have to loose for others to earn. It is best to stay away from such sites.
The word ponzi is used for scam offer where the early investors are paid with the money generated from new investors. Multi Level Marketing works in the same method. A marketer will earn from his or her downlines.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Yeah , thats exactly known to be MLM websites where the referrer earns some money after inviting paid referrals and the people who invested under him lose the money. Its an other level ponzi scheme , which is not new though.
This is a really big question that I have no answer for? But I know that Ponzi scheme is a fraudulent scheme that attract alot of people with the promise of high rate returns. They make it tempting so that when you are see someone or a friend who has benefited from these schemes. Sometimes you will be convinced because the one who's recruiting you was someone you know and trust and then they will starts showing you how much they earned.
Well just like you said, Ponzi had long been in existence before the first official forms were recommended.
Humans have been greedy since creation and any means that ensures that their greed is fed and grown has birthed Ponzi schemes.
Humans have been greedy since creation and any means that ensures that their greed is fed and grown has birthed Ponzi schemes.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Ponzi scheme is a very risky form of investing ,inorder to make money from it there is actually that trick of investing early into it , because then the Ponzi sites still have lot of funds to pay the users
Ponzi schemes have wreaked havoc on the lives of investors who were promised a particular amount of return at the end of the month. Ponzi schemes originated in Germany and have since expanded throughout the world, particularly in developing countries where poverty is the norm and individuals are seeking for a way to make ends meet.
Thanks for giving that history, its good to learn. It's kind of intriguing to know that the ponzi scheme has existed for a long time. Does that mean the fraudulent activities they have done have survived all these years?
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Ponzi scheme started quite from time past but became popular by the Advent of the internet.
The truth is they take advantage of people's greed make that happen.
The truth is they take advantage of people's greed make that happen.
Addai John
New member
The name ‘Ponzi’ scheme originated from Charles Ponzi, who in 1919 orchestrated a Ponzi Scheme. The postal service, at that time, had developed international reply coupons that allowed a sender to pre-purchase postage and include it in their correspondence. The receiver would take the coupon to a local post office and exchange it for the priority airmail postage stamps needed to send a reply.
With the constant fluctuation of postage prices, it was common for stamps to be more expensive in one country than another. Ponzi hired agents to purchase cheap international reply coupons in other countries and send them to him. He would then exchange those coupons for stamps that were more expensive than the coupon was originally purchased for. The stamps were then sold at a profit.
This type of exchange is known as an arbitrage, which is not an illegal practice. Ponzi became greedy and expanded his efforts. Under the heading of his company, Securities Exchange Company, he promised returns of 50% in 45 days or 100% in 90 days. Due to his success in the postage stamp scheme, investors were immediately attracted. Instead of actually investing the money, Ponzi just redistributed it and told the investors they made a profit. The scheme lasted until 1920 when an investigation into the Securities Exchange Company was conducted.
With the constant fluctuation of postage prices, it was common for stamps to be more expensive in one country than another. Ponzi hired agents to purchase cheap international reply coupons in other countries and send them to him. He would then exchange those coupons for stamps that were more expensive than the coupon was originally purchased for. The stamps were then sold at a profit.
This type of exchange is known as an arbitrage, which is not an illegal practice. Ponzi became greedy and expanded his efforts. Under the heading of his company, Securities Exchange Company, he promised returns of 50% in 45 days or 100% in 90 days. Due to his success in the postage stamp scheme, investors were immediately attracted. Instead of actually investing the money, Ponzi just redistributed it and told the investors they made a profit. The scheme lasted until 1920 when an investigation into the Securities Exchange Company was conducted.
Yeah, that is why I have opted never to invest in such schemes because of how risky it is .
It is always better to have your money with you than engage in such.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Franly speaking I think that this program is nothing but clear scam I can remember when I started a thread in forum and ask how the program started and no one seems to give me clear explaination of how that happen so I beleive that the program just got desighn for those who want to make fast money at the end of the day they all fall as scam
The first-ever Ponzi scheme started in the early 1900s with an Italian immigrant to Boston named Charles Ponzi. And, believe it or not, the investment started with good intentions. Ponzi found an opportunity in international reply coupons.
That is very good so you actually keep records of this I think that during that time people wont loss alot of money but this days you will see people dump their hard earn money into the program and forget themself but at the end they will weap
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
It is good for you, and I guess good for everyone that intends to protect his money.
The truth is, it is good to invest but not every investment should be taken.
Yeah, wise investors take calculated risk and they always analyze the risk before taking it .
This would help them arrive at the best decision .
You are right, the potential benefits should always outweighs the risk taken otherwise it is just a pure gambling that most likely results into futility. And it is not advisable.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
I've lost a lot of money to ponzi schemes. A few years ago, I almost lost all of my last savings to a ponzi called mmm.
I promise to never be deceived by such a simple con again. Greed drove me.
I promise to never be deceived by such a simple con again. Greed drove me.
I heard about that few years ago and I understand that it is not easy losing one's investment in a snap of a finger .
The important thing is that we learn from our experiences.
Newest Directory Listings
WWE Hub is a discussion forum for all things wrestling! Share and chat with other wrestling fans throughout the world!
ABCProxy is cost-effective, ethical residential proxies network!
