🔍 What Is a Ponzi Scheme?

A Ponzi scheme is a type of investment fraud in which funds from new investors are used to pay returns to earlier investors. 🚨 No legitimate profits are generated from actual business activity. The scheme depends on a constant inflow of new money and eventually collapses when that inflow slows down.

In the crypto space, Ponzi schemes may appear as fake DeFi protocols, fraudulent staking platforms, or token projects promising unrealistically high returns. ⚠️ While they may seem legitimate at first, they often lack a real business model or a sustainable source of returns.

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