The Ponzi Scheme 101: A Ponzi’s Life Cycle and Ways to Survive, Part 3

2 min read

We conclude our findings in a bid to help users better understand Ponzi schemes, so as to lower their investment risks. With reference to the research discussed in Part 1 and Part 2 1. There is a ceiling in the Ponzi scheme, which is definitely impossible to grow constantly The ceiling of the Ponzi scheme varies according to investment markets, the education background of investors and financial openness. However, once the scale reaches a certain threshold, the scheme can collapse. This is why P2P giants like Ezubao and Fanya can grow rapidly in the early stage but soon fail after…...

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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.