The Ponzi Scheme 101: A Ponzi’s Life Cycle and Ways to Survive, Part 2

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…...