In the investment field, as more and more people yearn for high returns, various eyewash schemes have emerged, the most famous of which is the so-called "pyramid scheme." This kind of scheme usually promises participants substantial returns by recruiting new members, but in reality, early investors can only profit if new members keep being recruited. When this recruitment can no longer continue, the scheme often collapses completely.

Although pyramid schemes have been classified as illegal in many countries, they can still often be seen as they frequently disguise themselves as legitimate businesses. Let's take a look at a few cases that once caused a stir:

**Ponzi eyewash**

- Charles Ponzi is regarded as the pioneer of the modern pyramid scheme. The scheme he operated in the early 1920s promised investors high returns on international postal reply coupons, but in reality, it used the funds from new investors to pay off old investors, ultimately failing in 1920.

- Bernie Madoff is one of the most notorious eyewash operators in modern times. During his eyewash that lasted over 20 years, investors lost an estimated $65 billion. Madoff was arrested in 2008 and sentenced to 150 years in prison.

**The Controversy of Multi-Level Marketing (MLM)**

- We have all heard of some well-known companies that have been accused of being pyramid schemes, such as certain marketing firms. These companies operate by selling products and recruiting more salespeople. Although they market themselves as a normal sales model, critics argue that the vast majority of salespeople do not make money and can only earn income by recruiting a large number of new members.

- Companies like Herbalife often face similar accusations, with their product prices being criticized as too high and the income of salespeople being meager.

**Other Famous Plans**

- Vemma primarily sold energy drinks and weight loss products, but it closed in 2016 due to accusations of being a pyramid scheme.

- BurnLounge promised members that they could earn money by recruiting new members, but ultimately ceased operations in 2012, citing involvement in an eyewash scheme.

**How to Protect Yourself**

Many countries have imposed legal sanctions on pyramid schemes, but to truly protect oneself, one must rely on oneself. It is essential to conduct thorough research on the company and its business model before investing, being wary of promises of high returns with low risk, as well as companies that require recruitment to truly profit. If there are any doubts, the best course of action is to contact the relevant local authorities for consultation.

Overall, pyramid schemes are not only illegal but can also cause significant damage to the financial situation of participants. By recognizing the characteristics of these schemes, one can position themselves safely and avoid being deceived. I hope you exercise caution and discernment when seeking investment opportunities and steer clear of traps.