A Ponzi scheme is a fraudulent investment scheme in which returns are paid to existing investors from funds contributed by new investors, rather than from profit earned. The scheme relies on the continuous influx of new investors to provide the returns to earlier investors, and it typically involves promising unrealistic returns or returns that are far above market rates. The scheme typically falls apart when the number of new investors dries up, at which point the scheme can no longer pay the promised returns and collapses. It is named after Charles Ponzi, who became notorious for using this type of scheme in the early 20th century.

Is scam or not. Yes, this system is scam.

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