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Ponzi Scheme

By Cryptomcmillan1 | Updated on May 24, 2020
A Ponzi scheme is also referred to as pyramid scheme, and typically takes the form of an investment scheme which pays existing investors with funds collected from new investors. Ponzi schemes usually come with the promise of high returns and little risk, while requiring members to actively recruit more members to join the scheme. Once recruitment stops the schemes usually go bust as they run out of funds to pay existing members.

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Related Terms

STO
Security Token Offering (STO) refers to a public offering for tokenized digital securities, or in short security tokens traded in cryptocurrency exchanges.
Solidity
Object oriented programming languaged used in various smart contract blockchains.
REKT
A shorthand slang for “wrecked”, typically describes bad trades that results in losses.
Mnemonic Phrase
A mnemonic phrase (also known as mnemonic seed, or seed phrase) is a list of words used in sequence to access or restore your cryptocurrency assets.
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