Ponzi Scheme and Multilevels: What are they?

Ponzi or multilevel schemes

✔️ Information reviewed and updated in April 2024 by Pedro Martínez González

Today there are a large number of businesses available for people to start the wonderful path of entrepreneurship. Unfortunately not all schemes like Multilevel and Ponzi Scheme are as good as they seem and others, although misleading, are not illegal.

Here we will talk to you about two widely known modalities in the business world, but which also have many points against them, or not? That's right, we will explain everything you need to know, both about the Ponzi scheme and the so-called multilevels. In addition, we will tell you how to know if you are in one.

Ponzi scheme

The Ponzi scheme is a method created to scam people, of course, which was invented by the Italian Carlos Ponzi. Basically it is a person in charge, whose task is to recruit more people promising huge profits in a short time.

These people give a contribution and then they have to find more people to invest in the business so that a chain or a kind of pyramid is made. In the end, the money comes from the new links or investors, it is never invested or profits are generated. When they stop depositing, the Ponzi scheme collapses.

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About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

4 comments on «Ponzi Scheme and Multilevels: What are they?»

  1. luis Ardila Reply

    Buenas tardes , quisiera informacion sobre una nueva empresa que salio https ://kap3 .io/ en la cual ya inverti, dicen que trabajan solo unicamente con el par EUR/USD, que todo es publico y la auditoria externa se puede ver en este link: https ://bscscan .com/address/0x4bc61a50d1c974347db9b61d8719a59d02288156 que todos las transaciones son en tiempo real y publicas, que se pueden ver segundo a segundo, y que la auditoria externa se puede ver en este link: https ://www.myfxbook .com/members/KAP3/kap3-2024/10649431
    agaradezco su opinion, los 4 brokers con los que trabjan son : doo prime, roboforex, VTmarkets y miltibank group. cordial saludo

    • Recommended-brokers.com Reply

      Hola luis, los 4 brokers con los que trabajan NO ESTÁN regulados, al menos para latinoamerica, te recomiendo que evites este tipo de inversión, es pisible que después no logres recuperar tu dinero.

      Greetings.

  2. Carlos Eduardo Reply

    This company does not pay. I don't get paid yet, don't do it, you'll thank me later. Greetings.

    • Recommended-brokers.com Reply

      Hi Carlos Eduardo, thanks for commenting on Ponzi Scheme and Multilevel Marketing: What are they? This broker is a SCAM. Do not send them money, they want to get as much money as possible with lies, the operations are not real, they do not put the money in the market, they just make it look and in the end they tell you that you have lost and they keep it.

      If to withdraw your money they ask you for more to pay taxes, fees, legalizations, etc. Do not do it! It is a clear sign that they want to steal your money and they will not return anything even if you pay. If you have more information about the company, we ask you to share it with us, especially if it is information that you think can help other people by investing with this company.

      Do you have names of advisers, numbers, emails from which they have contacted you? Do you remember how you found this broker in the first place?

      To get your money back, try our chat or this link: CLAIM YOUR MONEY, WE HELP YOU

      regards

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