Dissecting Ponzi schemes on Ethereum: identification, analysis, and\n impact

Abstract

Ponzi schemes are financial frauds which lure users under the promise of high\nprofits. Actually, users are repaid only with the investments of new users\njoining the scheme: consequently, a Ponzi scheme implodes soon after users stop\njoining it. Originated in the offline world 150 years ago, Ponzi schemes have\nsince then migrated to the digital world, approaching first the Web, and more\nrecently hanging over cryptocurrencies like Bitcoin. Smart contract platforms\nlike Ethereum have provided a new opportunity for scammers, who have now the\npossibility of creating "trustworthy" frauds that still make users lose money,\nbut at least are guaranteed to execute "correctly". We present a comprehensive\nsurvey of Ponzi schemes on Ethereum, analysing their behaviour and their impact\nfrom various viewpoints.\n