Ponzi Scheme
By Cryptomcmillan1 | Updated on May 24, 2020
A Ponzi scheme is also referred to as pyramid scheme, and typically takes the form of an investment scheme which pays existing investors with funds collected from new investors. Ponzi schemes usually come with the promise of high returns and little risk, while requiring members to actively recruit more members to join the scheme. Once recruitment stops the schemes usually go bust as they run out of funds to pay existing members.
Related Terms
Yield Farming
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees.
Offline Staking
Staking without needing to be connected to the blockchain
Enterprise Ethereum Alliance (EEA)
Enterprise Ethereum Alliance is made up for a group of Ethereum developers, corporations as well as startups who are collaborating to find ways to use Ethereum for business applications.
Daily Active Addresses (DAA)
On a blockchain, users interact with one another through their addresses, and daily active addresses (DAA) refers to the number of addresses which fulfills the defined activity parameter on a given blockchain.
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