MONEY DECODED

"2% a Day, Guaranteed": How to Spot Ponzi Math in Crypto

If an investment promises a fixed daily or weekly return, do the math before anything else. 2% a day sounds small. Compounded for a year, it would turn $1,000 into more than $1,300,000. No real business, bank or trading strategy does that consistently.

How a Ponzi scheme works

Early investors are paid "profits" that actually come from the deposits of newer investors. Payments arrive on time at the beginning, which builds trust and word of mouth. Many schemes add referral bonuses so members recruit friends and family. When new deposits slow down, withdrawals are delayed, then frozen, and the operators disappear.

Red flags

• Guaranteed or fixed returns, especially daily ones.
• Bonuses for bringing in new people.
• Vague explanations like "AI trading bot", "arbitrage" or "secret strategy".
• Withdrawal limits, waiting periods or new fees when you try to cash out.
• No registered company or regulator behind it.

What to do

• Treat any guaranteed return as a warning, not a feature.
• Search the company name together with words like "scam", "withdrawal" and "regulator".
• Never recruit others into something you cannot fully explain.