Can it be a PONZI scheme?
Ponzi schemes are the opposite of value-based investing
Ponzi 101
A Ponzi scheme “works” only as long as new participants enter in greater volume than early buyers cash out.
The problem lies in the fact that, since no value is created, the last new participants before the pyramid collapses become total losers. They only have enough time to pay the entrance fee to the pyramid layers above them before it comes crashing down.
Many digital (“crypto”) assets, for example, are set up as pure Ponzi schemes.
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A 6 Week Online Course in Stock Investing
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