Spotting A Ponzi
All ponzies look attractive and all pay well for the first people to participate but then as things fall apart the vast majority of participants lose money.
please note that people getting paid does not make any plan safe. All plans pay out initially to attract more “invetors”.
Unfortunately it is not easy to spot all ponzies but some are obvious.
The first red flag is when the money paid out is greater than the money paid in. This may seem obvious but is often ignored or obscured by the hype. An example of such a plan would be a straight line plan paying out $20 for every $10 “invested”. No matter how this is presented it is mathematically impossible and is ALWAYS a ponzi.
The above are easy to spot but still attract thousands of people looking for an easy way to get rich quick. Most ponzies are more subtle and more difficult to spot.
Usually these other forms of ponzie masquerade as investments in “done for you” trading or mining operations. They claim to be making big profits from their expertise and offer you a good return on any deposit that boosts their trading capital. These are hard to actually spot because it is possible to make good profits in these areas but few of the plans offered are genuine.
One thing to look out for is if there is a person or persons that are identified as real and putting their reputation on the line. Any anonymous plans should be avoided.
Unreasonable profits are another sign of a ponzi; it is possible in trading to make huge profits in a single day, but ALL traders suffer losing days. An average of 3% to 5% daily is possible but rarely achieved and so any plan offering more than this is likely to be a ponzi.
The best advice is to be cautious with any “done for you” system and always follow the GOLDEN RULES…
- Never put in money that you can’t afford to lose.
- Take out your stake money as soon as practical. Once you have your cash back you can’t lose!
- Never get greedy.
- Don’t fall for special promotions offering even greater returns; these often precede a “rug pull”.
- Compound half your income once you have your stake back and draw the other half, providing you with growth and profit.
Don’t rely on 3rd party recommendations or scam alerts, do your own resrarch and take personal responsibility for your actions.
Below are some plans that I am investing in and are doing well for me. They are not in any special order of any significance. Are they ponzies? I hope not but only time will tell.
There is always a risk. Even genuine plans can fail! You may want to look at them because even in short lived plans you can make good money as long as you play by the rules above.
- Beyond Infinity – This is probably one of my favourite plans and I have been involved for almost a year. I have referred a large number of people to this by offering a $35 rebate on the one time membership fee of $50. It can be totally passive and over time will really pay great returns. Like all plans it works faster with referrals. In the time we have been involved our weekly income is now over $500, with withdrawals paid promptly, and we have several cars that will be delivered starting in April 2024. The car plan has to be seen as it guarantees a new car for just 100th of the retail price. The minimum and maximum to get started is just $50, unless you want to buy a car for 100th the normal price.
- QUOPI – I joined 30th June 2023 with $10 and just re-invested my income at every opportunity. I did withdraw about $12 to see if it all worked and it did. I have referred 38 active members, but I don’t know how much of my income is due to referrals. I now have over $330 earning me money and it is growing ever faster. I like this plan a lot because anyone can get in by risking just $10 and with patience and re-investment build up a good balance and income.
- EchoOne – This only launched November 1st. 2023 and I joined on the 4th. with $100 but they took a 3% fee leaving me with a $97 deposit. I have referred 2 active members and my passive income is $12.94 and referral income is $57.69. My sponsor joined with a $30,000 deposit but even if I had that amount I would not put it into any plan. However, it shows his trust in the people running the show and they are very transparent. Withdrawals can only be made weekends and the only way to invest income is to withdraw and then deposit. I will probably do that this weekend and have not yet calculated when I will withdraw my stake.
- Bavarsis – I only joined this 18 days ago with a $100 deposit. It pays 0.5% daily which may not seem much but try getting that from your bank! So far I have not referred anyone and earned $9 so, it will be a while before I break even, but this may prove to be a solid long term plan. Who knows?
- Cryptex – If I was going to design the perfect scam/ponzi then this would be the model. No-one can get anything out except commissions for promoting for at least 3 years and that gives plenty of time to milk the masses. The rewards promised are very high but this program should be treated with extreme caution for the reasons mentioned. However if you have $100 you are prepared to lose it may be worth the gamble that it is in fact honest. I can’t remember my exact date of joining but it’s about August 2023 and I have a 3 year and a 5 year contract.
LOOKS Scammy!
I had one withdrawal for $51 paid and now they stopped paying. See chat with support to the right
- MaxCapital – I joined this because they offer a debit card. It pays 4% for 5 days with a deposit of $50 to $999 ( you can earn more with a bigger deposit). I only joined 21st November and I am making this post just after making a $100 deposit. It’s worth checking out.
I just learned that you must have a deposit of $5,000 or more to qualify for a MaxCard so starting with my $100 it will be February 24th 2024 (if I don’t withdraw and re-deposit every 5 days) when I qualify; I can wait!
good research indeed
Thank you Sir, for the invaluable, useful, eye-opening, and enlightening article on How To Spot a Ponzi Scheme.
However, I observed just a few of typo errors, which I advise should be corrected. I indicate the typos in double quotes below:
Paragraph 4, two errors: (1) “attracy” thousands of people; (2) “mare” difficult to spot.
Paragraph 5, one error: trading or “miniming” operations.
I pointed out these typos without prejudice, and it’s not meant to condemn but rather to make the article more understandable for the readers.
Thank you once again for the article. God bless you Sir.
Thanks – my typing is atrocious!