Ponzi Schemes and Cryptocurrency: How Do They Work Together?
DOI:
https://doi.org/10.59573/emsj.8(2).2024.25Keywords:
Ponzi, cryptocurrency, Bitcoin, investment fraudAbstract
This conceptual paper delves into the intriguing intersection between Ponzi schemes and cryptocurrency, shedding light on the unique dynamics, challenges, and implications arising from their convergence. While Ponzi schemes have long been recognized as fraudulent investment schemes, the emergence of cryptocurrency has introduced novel avenues for perpetrating such schemes. This paper examines the underlying mechanisms that facilitate the fusion of Ponzi schemes and cryptocurrency. It explores the emergence, characteristics, impact, and regulatory challenges. This paper contributes to a deeper understanding of the complex dynamics at play and provides insights into safeguarding investors and promoting the integrity of cryptocurrency markets.
References
Albrecht, C., Morales, V., Baldwin, J. K., & Scott, S. D. (2017). Ezubao: a Chinese Ponzi scheme with a twist. Journal of Financial Crime, 24(2), 256–259. https://doi.org/doi:10.1108/JFC-04-2016-0026
Bartoletti, M., Carta, S., Cimoli, T., & Saia, R. (2020). Dissecting Ponzi schemes on Ethereum: identification, analysis, and impact. Future Generation Computer Systems, 102, 259–277.
Craggs, B. (2017). Information bias and trust in bitcoin speculation. Lancaster University.
Cumming, D J., Johan, S., & Pant, A. (2019, July 24). Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty. Journal of risk and financial management, 12(3), 126-126. https://doi.org/10.3390/jrfm12030126
Hidajat, T. (2018). Financial Literacy, Ponzi and Pyramid Scheme: Evidence from Indonesia. Journal of Economic & Management Perspectives, 12(1), 193–200.
Hidajat, T. (2019). Behavioural Biases in Bitcoin Trading. Fokus Ekonomi: Jurnal Ilmiah Ekonomi, 14(2), 337–354.
Hidajat, T., & Phung, T.-B. (2023). Ponzi Scammer: Old Wine in New Bottles? International Business and Accounting Research Journal, 7(2), 184–193.
Hidajat, T., Primiana, I., Rahman, S., & Febrian, E. (2020). Why are people trapped in Ponzi and pyramid schemes? Journal of Financial Crime, ahead-of-print. https://doi.org/10.1108/JFC-05-2020-0093
Lewis, M. K. (2012). New dogs, old tricks. Why do Ponzi schemes succeed? Accounting Forum, 36(4), 294–309. https://doi.org/http://dx.doi.org/10.1016/j.accfor.2011.11.002
Shen, X., Jiang, S., & Zhang, L. (2021). Mining bytecode features of smart contracts to detect Ponzi scheme on blockchain. Computer Modeling in Engineering & Sciences, 127(3), 1069–1085.
Sotiropoulou, A., & Guégan, D. (2017, September 14). Bitcoin and the challenges for financial regulation. Capital markets law journal, 12(4), 466-479. https://doi.org/10.1093/cmlj/kmx037
Vasek, M., & Moore, T. (2018). Analyzing the Bitcoin Ponzi scheme ecosystem. International Conference on Financial Cryptography and Data Security, 101–112.
Vasek, M., & Moore, T. (2019, January 1). Analyzing the Bitcoin Ponzi Scheme Ecosystem. https://doi.org/10.1007/978-3-662-58820-8_8
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Terms and conditions of Creative Commons Attribution 4.0 International License apply to all published manuscripts. This Journal is licensed under a Creative Commons Attribution 4.0 International License. This licence allows authors to use all articles, data sets, graphics and appendices in data mining applications, search engines, web sites, blogs and other platforms by providing appropriate reference. The journal allows the author(s) to hold the copyright without restrictions and will retain publishing rights without restrictions.
A competing interest exists when professional judgment concerning the validity of research is influenced by a secondary interest, such as financial gain. We require that our authors reveal all possible conflicts of interest in their submitted manuscripts.
The Editor reserves the right to shorten and adjust texts. Significant changes in the text will be agreed with the Authors.
ISSN 
