Reply to post: Re: Not Ponzi - it's MLM

Making money mining Coinhive? Yeah, you and nine other people

Anonymous Coward
Anonymous Coward

Re: Not Ponzi - it's MLM

You're way off. It would only be MLM if it required the top players to recruit distributors who then recruit a next level of distributor and so on. A Ponzi scheme can be and usually is a "flat" structure, although it can involve subsidiary reselling or recommendations.

There's also the key difference that MLM is based on maths that has to have a level who make little or nothing (so largely expectations fraud rather than direct misrepresentation), whereas a Ponzi scheme is simply attracting capital that is then used to pay out fictitious benefits to maintain an illusion of investment returns (so wholly and intentionally misrepresentation).

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