ponzi
Definition
A fraudulent investment scam promising high returns with little risk, where payouts to early investors are funded by capital from newer investors rather than actual profits.
Named after Charles Ponzi, an Italian swindler who popularized the scheme in the 1920s by exploiting international postal reply coupons.
Examples
That crypto bro's 'guaranteed 10x moonshot' turned out to be a classic ponzi, leaving bagholders with digital dust.
She joined the MLM selling overpriced leggings, only to realize it was a ponzi scheme disguised as girlboss empowerment.
Uncle Bob's neighborhood investment club promising free golf outings? Pure ponzi, with returns recycled faster than his bad jokes.
The influencer's 'passive income blueprint' course felt like a ponzi when the only profit came from recruiting wide-eyed newbies.