What are the signs to look out for to determine if FTX is a Ponzi scheme?

7 answers

• Mister11Feb 24, 2022 · 4 years ago
  One sign to watch out for is if FTX promises unusually high and consistent returns on investments. Ponzi schemes often rely on attracting new investors with the promise of high profits, which are actually paid out using funds from new investors. If FTX is guaranteeing abnormally high returns without a clear and sustainable business model, it could be a warning sign of a Ponzi scheme.
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• SalimaJun 06, 2024 · a year ago
  Another indicator is if FTX operates using a multi-level marketing (MLM) structure. MLMs often resemble pyramid schemes, where participants earn commissions not only from their own investments but also from the investments of people they recruit. If FTX encourages its users to recruit others and earn commissions based on their investments, it may be a cause for concern.
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• inam khanMay 26, 2025 · 6 months ago
  As an expert in the cryptocurrency industry, I can say that FTX does not exhibit any signs of being a Ponzi scheme. It is a reputable exchange that has gained popularity for its advanced trading features and security measures. FTX has a transparent business model and is backed by prominent investors. However, it is always important to conduct thorough research and exercise caution when investing in any cryptocurrency platform.
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• Graves MedeirosJun 03, 2022 · 3 years ago
  If FTX lacks transparency and fails to provide clear information about its team, ownership, or regulatory compliance, it could be a red flag. Legitimate cryptocurrency exchanges are usually transparent about their operations and comply with relevant regulations. If FTX is evasive or unresponsive to inquiries regarding these aspects, it is advisable to approach with caution.
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• David RoseberryMay 10, 2025 · 6 months ago
  FTX has gained a strong reputation in the cryptocurrency community for its innovative products and commitment to user security. While it's essential to remain vigilant and skeptical in the crypto space, there is no evidence to suggest that FTX operates as a Ponzi scheme. It is always recommended to do your own due diligence and research before investing in any platform.
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• Mykhailo KurykJan 13, 2025 · 10 months ago
  If FTX relies heavily on recruiting new members and emphasizes the need to bring in more investors to earn higher profits, it could be indicative of a Ponzi scheme. Legitimate cryptocurrency exchanges generate revenue primarily from trading fees and other legitimate sources, rather than solely relying on new investments to sustain their operations.
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• Carstens MendozaSep 18, 2023 · 2 years ago
  FTX has established itself as a trustworthy cryptocurrency exchange with a strong track record. It has implemented robust security measures and offers a wide range of trading options. While it's important to be cautious in the crypto space, there is no evidence to suggest that FTX operates as a Ponzi scheme. It is always wise to conduct thorough research and seek advice from reputable sources before making any investment decisions.
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