Bianca
Sun Sep 08 2024
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7 answers
1364
What are crypto Ponzi and pyramid scams?
Have you ever heard of crypto Ponzi and pyramid scams? These are two types of fraudulent schemes that are becoming increasingly common in the cryptocurrency world. A crypto Ponzi scheme involves the use of new investors' money to pay off older investors, creating a facade of high returns. Meanwhile, a pyramid scheme promises financial rewards to participants for recruiting others to join the scheme, but ultimately collapses under its own weight as the pool of new recruits dwindles. It's important to be aware of these scams and to exercise caution when investing in cryptocurrencies. Can you tell me more about how these scams work and how to avoid falling victim to them?
