What is Ponzi scheme?
Ponzi scheme is believed to be an investment swindle in which some early investors are paid off with money put up by later ones in other to encourage more and bigger risk. That is , Ponzi scheme deals majorly with investors money in circulation. The scheme has been carried out on many platforms with the aim of getting people engaged so as to generate money from them, take for instance, Nigeria in west Africa, the Ponzi scheme has sent a lot of investors to their early grave and the citizens kept on engaging with the aim of generating easy and fast return on their investment despite the odds. In view of this, Ponzi scheme organizers take more advantage of citizens who want to make fast and easy money and in making this more easier, they employ celebrities to promote the scheme so as to get more engagement. With no regulation from the government, the citizens kept on engaging and putting their life savings in it which in most cases turn out to be a total fraud.
The cryptocurrency and the Ponzi scheme
Having said that the Ponzi world deals majorly with money, the cryptocurrency which is the digital money is not left out from the scheme rather it’s grows faster on it. With the constant growth in crypto circle, most people now move their Savings and investments to the platform with the intention to grow their money.
The cryptocurrency world is not excluded from the Ponzi scheme, as it has been the order of the day in some part of Europe and Asia. Take for instance, the recent Terra blockchain, The Onecoin Ponzi scheme among others ..
Many people in the western world have witnessed continuous increase in the Ponzi scheme as a means of accumulating wealth by defrauding innocent citizens and go Scotfree. Regarding this, the government and Regulatory bodies pass bills to tackle the fraudulent activities on the crypto platform but the citizens keep on engaging. In some African countries, the government has placed a ban on it practice but the Ponzi scheme organizer always find their way around in exploiting citizens and this is painting the digital currency bad in the economic sector.
Also government all over the world has find a way to curtail the fraudulent activities by making the digital currency a centralised platform where Regulatory bodies can monitor it activities and regulate all form of anomalies in the platform. Not forgetting that cryptocurrency is designed to work on a decentralised platform paving way for users to complete their transactions without any third party.
With regards to African who is less engaged in the crypto world compared to the western world, that is why the crypto Ponzi scheme is more effective in the western and eastern part of the world than Africa. With the design of cryptocurrency as a decentralised platform, how will the Ponzi scheme be eradicated with a proper monitoring, and what will be the fate of African countries who are most likely at the receiving end when they fully ventured into the digital currency world ..?