Crypto Terms: Letter P

What is Pyramid Scheme?

Pyramid Scheme MEANING:
Pyramid Scheme - a scam that employs a top-down hierarchical structure.
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Let's find out Pyramid Scheme meaning, definition in crypto, what is Pyramid Scheme, and all other detailed facts.

A pyramid scheme is a scam using a “get-rich-quick” idea based on a top-down hierarchical structure. In a pyramid scheme, those who are at the top of the organizational structure bear the biggest rewards.

Pyramid schemes are closely related to multi-level marketing. While some schemes involve physical products, the primary way of preying on the victims is getting them to join a specific organization. The recruits are promised monetary rewards for joining and recruiting new members themselves.

While the top part of the pyramid, including the founders and executives, is the group garnering the biggest share of the profit, those on the bottom of the chain can even end up losing money.