What is a Ponzi scheme?

Test Your Knowledge

A. A legitimate investment strategy that relies on high returns from profitable investments.

B. An investment scam where returns to earlier investors are paid using money from newer investors.

C. A cryptocurrency project that uses blockchain technology to generate high returns.

A. They promise substantial returns with no risk involved and rely on new investors to pay earlier ones.

B. They generate profits from legitimate investments and distribute them to all participants.

C. They involve transparent, decentralized technology to ensure secure transactions.

A. He promised high returns from international postal reply coupons but used funds from new investors to pay earlier ones.

B. He created a decentralized platform that promised returns from cryptocurrency investments.

C. He generated profits through legitimate international trading of assets.