A scam whereby investors are promised exceptionally high returns on their investment via an unsustainable business model. The basis of a Pyramid Scheme is that money coming in from new investors is used to pay earlier participants. As the scheme grows, however, there are eventually too few newcomers to pay the increased number of existing participants, and the scheme collapses. Such schemes are regarded as fraud and are illegal in most countries.
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Pyramid Scheme
What does Pyramid Scheme mean?
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