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What is a Ponzi scheme? How can multi level marketing companies give so much profit?

Destiny two thousand limited. We are more or less familiar with this name. In the year 2000, the journey started in Destiny Bangladesh. Multi-level marketing and pyramid schemes are taken to the level of industry. Destiny makes common people in the trap of greed and eager to invest. Commissions are paid on bringing in new customers. Millions of people get involved with this institution seeing the possibility of much more profit than the bank or any other financial institution. People do not stop by investing themselves. Friends, relatives and friends who are known for the greed of the commission are brought by the neck to log in to Destiny. These users are awarded various awards including silver, gold and platinum. The following story is known to everyone, the company has been doing business in this country for twelve years.


In the beginning many people also got good amount of profit from Destiny. They spread through word of mouth. At that time Destiny was not less than the popularity and superstar of MD Rafiqul Amin, the most popular brand in the country. But one day if you break a bone in your hand. In the year 2012, the dark side behind the destiny business was published. People are familiar with the MLM business in the Ponzi scheme model through Destiny. As long as the law enforcement and government agencies are looking at Destin, they have stolen more than four thousand crores from the market. So what the hell is Ponzi Schemes. Many people know the rest of Destiny's story and I will tell those who don't know it a little later.


We would rather introduce you to a man now. He can't exactly be called a gentleman. In the world of financial scams, this man named Charles Panji can be called Hamilon's fiddler. In place of flute tunes, Ponji would offer huge profits in return for investment. It was not possible for anyone to give such a profit. So how did Mr. Ponzi make so much profit? How did he gain himself or herself? The story is very interesting. I will take you back a hundred years. Ponzi, an Italian citizen, then made a fuss in Boston, America. He is the leader of an organization called Security Exchange Company. Cui's main reason about him is that investors have flocked to invest in his company. Thousands of investors flocked like locusts to Charles Ponzi as if the PC government was a magician. At that time the postal department of different countries used certain international coupons for exchanging letters. These coupons used to have a local currency value, but due to fluctuations in currency exchange rates, the international currency value would often increase or decrease in other countries. That is, the coupon that costs five dollars in America may be available at the equivalent price of two dollars in a European country. In the beginning, Charles Ponzi took exactly this opportunity. He appointed some agents in different European countries. With whom he used to buy these coupons in low value currency internationally.




 Let's say that the price of coupons suddenly decreased in Jenmark or Netherlands and Ponzi used to buy cheap coupons from there and sell them at high prices in Germany, Italy or America or exchange these coupons with expensive postage stamps. Due to the difference between these two prices, he used to fill his pocket with a very big profit. Investors are interested in Ponzi's business model for profit. At that time, the annual profit of keeping money in the bank was only five percent. At that place Ponjir company also offered to give fifty percent profit if you buy international coupons. That too in just forty five days. Hundred percent profit if you invest ninety days. Twenty times more profit than the bank can be obtained in just ninety days. Tell me why people will not invest money in business? But so far there was no problem legally. At one point, the craving for Panjira started increasing. He was greedy and intelligent. This small man of five feet two inches started playing with people's faith with his intelligence. Investment in own company was very low. He used to redistribute the money deposited from the investors in various ways so that they believed the scheme was really capable of making good profits.


 The formula is very simple to use the money taken from today's investors to pay off the debt of yesterday's investors. Meanwhile, people are pouring money into Panjir business even by mortgage their houses due to profit. With that money, Ponji started buying cars and started spending. The life of luxury. And there was no lack of people who would get money from him to get benefits. In this way, he put about one and a half million dollars in his pocket for eight months. The paper begins with a description of the Ponzi scheme. After that, the authorities noticed the matter. They started investigating this offer. Turns out bPonji's invented scheme is like a hollow balloon. There is no real investment in it. There is only the next riches and the plan to kill and eat other people's money. Ponji spent the end of his life in jail. He was arrested on August 12, 1920. But Ponji's story does not end here. In 1925, he went out on bail and started cheating again. He has to go to jail again. He was expelled from America after being released from prison in 1934. Panjir was caught doing the same fraud business in his home country Italy.


Then he moved to Brazil. But just like the one who went to heaven but the paddy broke, Panjir started the business of these two numbers there too. Last life. This impostor spent in extreme poverty. He died destitute. And leave behind a breakthrough strategy of fraud. Even today, fraudsters in the country are destroying thousands of people by exploiting the greed of people. Since then, this type of financial fraud has been called a Ponzi scheme. Ponzi schemes do not actually have any real product service or business structure. There are some false promises and proposals that are inflated and presented. Investors fall into the trap of losing capital due to the greed of making easy money. But the history of Ponzi scheme, which exploits the greed of the common people to benefit individuals, is quite old. Modern day business is called as multi level marketing. Taking money from ten people and giving a small dividend to two people and then promoting it in a big way. Which was made up by Purkhawa stock broker Bernie of World Strait, Sahara Group in India, he did the test in Bangladesh. Youth has done it, Unipay has done it, First Euro has done it, GS Mining has done it and Halamule has done Ring ID, SN Group and even so called e-commerce companies like Evaly Dhamaka or E Orange have done it. From America to Bangladesh, you can easily find thousands of incidents by searching around the world. Where do you know the dangers of Ponzi schemes? It is not a sustainable business model.


Actually it may not be the type of business. Could just be a cheating model. Ponzi schemes are basically pyramid shaped structures. At the very top are the original planners. Who initiated the scheme. Then there are the primary members. Primary members collect new members. A pyramid-shaped customer base is formed from top to bottom by continuing the process of recruiting members by members below them. That's why many people call it a pyramid scheme. However, there are some minor differences between the Ponzi scheme and the pyramid scheme. Consumers from Ponzi schemes are ultimately victims of losses. That has become forty five million customers of Destiny. Youth and hundreds of thousands of subscribers of UNIF have lost money. Thousands of people are struggling to invest in Evaly Orange. The problem is that it is very difficult to detect corruption in Ponzi schemes. Most of the time, it comes to light only when an insider reports the incident. It is bound to stop when new investors no longer invest money in it. It is no longer possible to operate due to reduced source of funds or liquidity. In this business, the entrepreneur's investment is so low that he runs away packing his own sugarcane. Many times many people started to fight to get back the original money and that's when the chaos started.


All Ponzi schemes have but some basic features. Guarantee huge profits on small investments without clarifying plans to increase income and grow the business. Promote income through extra consistent returns, unregistered investments, sometimes secret investments. Avoid providing any kind of information about the scheme. Entice them to invest further by returning the initial investors' money with huge profits. All these are characteristics of Ponzi schemes. Now the question is what is the way to escape from Ponzi scheme? There are so many fraudsters around to get all the tempting offers, how can the common people be careful? You don't have to be an economist to escape the clutches of a Ponzi scam. A little common sense is enough. If you want to invest somewhere, you have to clearly compare the risk and profit. Someone showed you the lure of sky-kissing profits and you went as far as butter. Greed is one of the six rips of man. Everyone has the desire to be rich inside. There is nothing wrong with them. But don't let that greed take away your natural thinking. According to the laws of any country, it is necessary to have a license or be registered with a professional investment regulatory body. Most Ponzi schemes involve unlicensed individuals or unregistered entities. So you have to pay attention to whether the person investing money is doing legitimate business. It is better to avoid investing that you do not understand. Before investing anywhere one should have a complete understanding of the investment area. If you want to invest in the automobile industry, it is very important to have a clear understanding of the industry. Otherwise, there is a high probability that both mango and chala will go. There is another interesting aspect of Ponzi scheme. Whenever the model businesses come under the notice of the law and the concerned persons are arrested, various conspiracy theories are born. These guys have huge fan following. And to those fan followers their image is almost godlike. For this they also demand the release of these criminals. Because they think that if these people are out of jail, maybe they can get back the money they have invested.


After the arrest of Charles Ponzi in 1920, some people expressed dissatisfaction. Even after the arrest of some people involved in the MLA business in Halamule, some people have opposed it. Many people know the outcome of Destiny 2000. The top people of the company have been caught after the case of the Anti-Corruption Commission. Most of them are in jail. But even after nine years, the customers have not received a single money back yet. Destiny has never shown a false tree. Sometimes it is said that the goat has eaten the tree. Billions of dollars have been smuggled out of the middle. There is no way to bring them back. Even today millions of customers are hoping. One day maybe they will get the money back. Although this hope is nothing but illusion.


Now let's come to a popular and controversial topic. Evale, the popular e-commerce company in Bangladesh, was doing business using Ponzis or multi-level marketing methods. Many will not accept it. But the reality is that Evali's business model was developed entirely in accordance with the framework of the fifty schemes. Evali used to deliver products at almost half the price. That rice money has gone from the pocket of ordinary consumers every time. Not from any angel investors fund. Evaluating delivery of goods to two by receiving advance payment for goods from ten persons. The remaining eight people wandered around like chatak birds for months after months. At the same time, Evaly's debt to both buyers and merchants increased by hundreds of crores of rupees. Because their business model was as hollow as a Ponzi scheme or multi-level marketing, and certainly without merit. Another such organization is Ring ID. According to The Business Standard, only in three months of this year ie April, May and June. They embezzled a total of three hundred and two crore rupees in these three months. They claim to be a community business, but actually it is an MLA business run on a Ponzi scheme. If you bring new members to the platform, old members are offered fifteen hundred to seventeen hundred taka. This is how they increase membership. Bronze, Gold and Platinum memberships are also to be purchased from them. After viewing the advertisement, money is received.


That money is also not available in cash. Cash out from Ring ID agent. A few days after purchasing the membership, the problem started with the account. Account is blocked. Thousands of ReID users are now desperately trying to sell their membership. Charles Ponzi is dead. But even after being banned in various countries including America, Ponzi scheme has not died but in the last one hundred years, this business model has flourished in different parts of the world under different names including MLA Marketing, Pyramid Scheme, Hi Hi Scheme. The beginning is the glamorous end. Despair. This is one line of these businesses. Our job is to warn others to beware of these scams. The wall between profit and greed is very thin. Let's never sink into the abyss while climbing over that wall.

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