Financial pyramid

Nowadays in the world there is a huge number of different financial structures that promise to their depositors some or other "reward" in the future, as a rule, much more than you can get with the help of a bank deposit. One of such structures is the financial pyramid. Sometimes it is called investment, but it does not change the essence of the matter.

In Russia, there is no direct ban on the conduct of this kind of activity, although S. Mavrodi once did everything to ensure that the phrase "the financial pyramid of MMM" was remembered for a long time by many deceived depositors. There is such an expression "History teaches that it does not teach anything". The new financial pyramid of Mavrodi, which he organized in 2011-2012, again found people wishing to receive quick and fabulous profits, and there are still people who believe that MMM is a unique chance to secure its future.

What is the financial pyramid?

All existing organizations of this kind belong to one of two types:

• Schemes of Ponzi
• Multi-level pyramids

The Ponzi scheme derives its name from the name of the enterprising American Charles Ponzi, who launched such a pyramid in the United States back in the early 1920s. Despite the fact that such schemes were known up to that time, it was the financial pyramid of Charles Ponzi, due to the participation of a large number of people, that was widely publicized in the United States.

The principle of its work is that the organizer promises potential participants to invest in the project funds, while promising "guaranteed" and very high income for a relatively short time. Participants do not need to attract new partners - they just need to wait a certain period. In the beginning, when the number of people in such a project is small, the organizer pays them money out of their own pocket, then the old participants begin to invest again, the rumor about incredible profits spreads and the number of those who want to increase. As soon as the flow of new participants begins to noticeably weaken, the organizer appropriates all the money and disappears. By this principle the company MMM and investment firm B.Medoffa was organized.

The multi-level financial pyramid works somewhat differently. According to this scheme, each beginner must first make an entrance fee. This amount is immediately divided between the person who invited the newcomer and the earlier members of the pyramid who invited the invitee. After the initial payment, the newcomer is obliged to attract at least two more people and this process continues with each new level. Sooner or later, such a multi-level pyramid also crashes. The reason is quite simple: for the operation of such a structure, it is necessary that the number of participants grow exponentially, i.e. very fast. For the first 10-15 stages, even the entire population of the country may not be enough. Therefore, about 80-90% of participants after payment of the entrance fee remain with nothing.

How to recognize the pyramid?

With the development of the Internet, more and more different projects appear, offering quick and guaranteed earnings, while practically not spending their time. And there are people who believe these promises, transfer money ... and then puzzle over how to get them back. In each of us deep in the shower is a child who wants to believe in miracles, freebies and superprofits. That's why it happens ...

In order not to fall for the bait and not to lose your savings, you need to check the project you are interested in with three things:

1. Does the project promise a huge profitability? If the promised profit in a month is more than 30%, then this is the first sign of the pyramid.

2. Powerful advertising and PR. The organizers of the pyramid always always try to attract as many people as possible.

3. Ease and ease of logging in with a small fee.

There are a lot of financial pyramids, they exist on average no more than five years, and then reappear under a new name or in another place. You can earn in them only on condition that you are lucky to be among the first participants, however, should this be done at all? I believe not, and I hope that you will absolutely agree with me.