Crypto pyramid schemes often disguise themselves as innovative investment opportunities or groundbreaking business models involving cryptocurrencies. Typically, they promise high returns in a short period, emphasizing the benefits of getting in early. Participants are required to pay an upfront fee, which they can supposedly recover by recruiting others into the scheme. The initial promoters also charge for mandatory training sessions, starter kits, or exclusive membership access, adding additional layers of fees.
The structure is inherently unstable because it relies solely on continuous recruitment for funding. Once the flow of new recruits dries up, the scheme collapses, leaving most participants with significant losses.
