Ponzi Schemes and Cryptocurrency: How Do They Work Together?

Abstract

This conceptual paper delves into the intriguing intersection between Ponzi schemes and cryptocurrency, shedding light on the unique dynamics, challenges, and implications arising from their convergence. While Ponzi schemes have long been recognized as fraudulent investment schemes, the emergence of cryptocurrency has introduced novel avenues for perpetrating such schemes. This paper examines the underlying mechanisms that facilitate the fusion of Ponzi schemes and cryptocurrency. It explores the emergence, characteristics, impact, and regulatory challenges. This paper contributes to a deeper understanding of the complex dynamics at play and provides insights into safeguarding investors and promoting the integrity of cryptocurrency markets.