What are the Characteristics of a Ponzi Scheme?

[Suba]

Ponzi scheme investments are not only found on the internet but also many of us find offline in our daily lives, where Ponzi scheme investments promise high profits and very minimal risk or even zero risk. Initially, this investment platform pays the first investor from the second investor's deposit and so on until the desired target is achieved and finally the manager of the Ponzi scheme investment platform runs away. Many people lack financial literacy so they are easily deceived, so one way to avoid Ponzi scheme investments is to know the characteristics. So in your opinion, what are the characteristics of a Ponzi scheme?

 

[Min George]

A ponzi scheme would promise you huge rewards and they don't have any value they offer to generate revenue.