Fake Blockchain --- A Chinese Ponzi Schemes (Blog 8) 14.12.2019
Fake Blockchain --- A Chinese Ponzi Schemes (Blog 8) In this week, Dr. Roman help us to understand some cases about financial fraud, and explain the concepts about the financial fraud, such as bribery, channel stuffing, round-trip transactions, side agreement and etc. But the most impressed concept is Ponzi Schemes, the author is interested with this topic and make a deeper research about a Ponzi schemes in China called ''Blockchain''. Definition about Ponzi Schemes and Blockchain Firstly, A Ponzi Scheme is a fraudulent investment, not a legitimate one. They promise above-average returns but fail in the long run. In the beginning, they will cash in on those returns. They use the principal invested by new investors to generate above-average returns for older investors. After paying those returns, they will use all their resources to attract new investors. In the end, these plans failed. They can't keep hiring enough new people to keep paying their old invest...
