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Mathmatically, How Does This Work?

 
 
Post: # 958,031
View Profile squinney
 
Reply Sat 16 Oct, 2004 09:18 am
I've come across this several times over the last year. It appears legit, since it has not been pulled, stopped or had complaints filed against it. Webpage

But, how does it work? How can it be since it does not require recruitment, downlines, membership fees?

If I put in $50 today, then apparently my account will have $100 within 3 - 10 days (I've watched it over time and the amount of time for doubling varies depending on season, participation, new sign-ups).

How can they do that? If using new money (people that sign up today) to pay old money (people that signed up 5 days ago) isn't that illegal? Isn't that floating? Why doesn't it crash?

There were also a few weeks in August when it was closed down to new sign-ups to change servers and catch up on getting everyone paid. During this time there was no new money / no new sign-ups allowed, so how did they pay those that had already put money in? How did the money double?

I just can't seem to grasp the math on this one. Any ideas?
 
Post: # 958,313
View Profile parados
 
  1  
Reply Sat 16 Oct, 2004 11:14 am
After looking at the website and doing a little searching it looks like just what it is.. TOO GOOD TO BE TRUE. Based on the description at easychair
this is nothing more than a pyramid scheme.
http://www.easychairclub.com/howdoes.htm#PaymentMethods

It attempts to disguise it by claiming you are setting up an internet business but read this:
Your recruitment - First, YOU get recruited. This is often accomplished by you signing up on a web site. Often you had to pay money to join. If you did not, you will usually be asked for money at some stage in the program. (That's how people in the program get their money, through the money of new people signing up.)

The one advantage to an internet pyramid scheme is you have a lot more suckers to bring in before it collapses. I would bet the times it shuts down for maintainance are the times they have to run from the cops and set up somewhere else. I also found it interesting that MSN and several other email addresses don't work on their system. Blocked perhaps by reputable companies?
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