Ponzi projects

Ponzi projects are fraudulent investment schemes that promise high returns to early investors, using new investors' funds to pay existing investors rather than generating legitimate profits. They rely on a continuous inflow of new investments to sustain payouts, eventually collapsing when recruitment slows or stops. Unlike legitimate businesses, Ponzi schemes lack real income sources and are unsustainable in the long term. They often attract individuals with the lure of quick, high gains but carry significant financial risk, as most participants lose money once the scheme fails.