The Ponzi Scheme 101: A Ponzi’s Life Cycle and Ways to Survive, Part 2
3 min read
We study the Ponzi scheme and different variables’ impacts, such as withdrawal rates, user growth rates, ceiling and so on. Impacts of Different Variables With reference to the basic model constructed in Part 1: We have just assumed that there are two main purposes for Ponzi projects: Extend the life cycle of the scheme; Have a higher balance. Next, let’s take a look at the impacts of different variables on these two factors. Impact of Withdrawal Rate Suppose that other conditions remain unchanged, set the withdrawal rate from 1% to 99% respectively to calculate the life cycle and balance of the…...
Alan Zhang Alan Zhang is an investor and market gazer that leverages greatly on data technology in decision-making. He is familiar with the different financial markets of China including the stock, futures and cryptocurrency market. Further, he participated in the establishment of alternative investment markets like black tea since 2014 and was responsible for the private placement of Huangshan Tourism shares (600054.sh) in 2015. He is currently also a Financial Analyst at X-Order, an innovative research institute that attempts to combine cross-disciplinary fields such as distributed computing, computational game theory, artificial intelligence and cryptography to discover future extended orders. It was founded by Tony Tao, who is also a partner at NGC Ventures.
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