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What is a “reverse Ponzi scheme”?

Ponzi scheme is one of the oldest and most common investment scams. It is a variant of pyramid scheme. Many illegal pyramid schemes use this trick to amass money. This scam is called "Invented" by speculator Charles Ponzi. Charles Ponzi was an Italian speculator who lived in the 19th and 20th centuries. He immigrated to the United States in 1903. In 1919, he began to plan a conspiracy to deceive people into investing in a company that was actually fictitious and promised investment. Investors will receive a 40% profit return within three months. Then, the cunning Ponzi will use the new investors' money as quick profits to pay those who originally invested to induce more people to be fooled. Due to the generous returns for those who invested in the early stage, Ponzi successfully attracted 30,000 investors within seven months. This conspiracy lasted for a year before people who were dazzled by the benefits woke up. Later generations said It's called a "Ponzi scheme."