Pyramid scheme how it works? | 🥇 The most complete guide in Brazil

Surely you have already been invited or know someone who entered the pyramid scheme, right? Well, for some time it was very common to find these pyramids everywhere. Promises of profits and easy money, but do you really know what a pyramid scheme is?

Most people who use this type of scheme take advantage by deluding people from making a payment with the promise that they will receive immense benefits, in one way or another. A very common way is that the one that gives a commission, on top of that payment, for those who bring a new partner to the scheme and increases the value for those at the top, called exponential growth. That is why the name is pyramid.

The scheme is very old and has been used numerous times. There is no exact date when it started, nor where, but it is always appearing as a different company, with formulas to make you rich in no time.

In this article we will talk about this controversial subject and this form of scheme that has already bothered many people.

What is pyramid scheme?

The pyramid scheme is a type of commercial arrangement that takes advantage of recruiting people with the promise of easy earning, where only those at the top can profit.

Pyramid schemes come in different forms. It started as a chain by mail, there was a list of names and addresses, whoever received the first letter was asked for a small amount of money. And so they go on, every time a letter was sent, the first received a larger share of that money.

The success of this form of trade occurs only in the grouping of new people for this chain. Hence the name “pyramid”, indicating that with more people to trade below the individual, more success will be achieved, but it reaches a point that is unsustainable, making the only person at the top win over all the layers of this pyramid.

Whoever is at the top takes “commission” from everyone below him, and so on. Getting to a point where there is no way to expand, thus causing the frustration of those at the bottom of this pyramid.

 

Is pyramid scheme a crime?

According to law 1.521 / 51, yes. “In the second article, it provides for the crime of a pyramid, also known as a pyramid scheme, which consists of obtaining illicit gains, through speculation or fraudulent means, causing damage to several people. With a sentence of 6 months to 2 years of imprisonment and a fine ”.

Even so, this does not prevent companies still trying to use this method to profit. Take the example of the pyramid scheme in Novo Hamburgo.

 

New Hamburg pyramid scheme

Novo Hamburgo pyramid scheme was known worldwide for the fact that the federal police and the IRS trigger the operation Egypt, against an online trading financial company, suspected of using pyramid scheme to earn profits.

Bitcoin is a pyramid scheme?

No, bitcoins are cryptocurrencies that are traded virtually. And there are many series and regulated companies that always aim to make it clear that every financial investment carries risks.

The type of online trading is already regulated and many platforms operate in a clear and clean way, helping investors to be successful.

Of course, as in any market, people can use a front to scam and reconnect money from people who are looking for a financial solution.

The Novo Hamburgo company, which used it in bad faith and with the promise of Bitcoin gains, tricked several customers into the pyramid scheme.

After being suspected of being a scheme, the investigation took more worrying directions. Seeing that the city had more similar systems, the federal police went to the bottom and came to the conclusion that this company earned more than R $ 100 million in the year.

It turns out that the aggrieved person ends up being ashamed of having fallen for the coup and ends up not denouncing the pyramid scheme.

Companies investigated by pyramid scheme

Thanks to the operation of the Federal Police, other companies have been investigated or are still being, by pyramid scheme began to appear. Companies like:

They fell on the radar on suspicion of using the scheme to make money.

Another well-known case was the Telexfree scheme in Espírito Santo.

The company that provided voice call service systems used multi-level marketing outreach to mask their pyramid scheme scams and promising quick and easy money to anyone interested in publicizing the company.

Pyramid scheme - multilevel marketing

Multilevel marketing is cool, and used a lot by big companies that make use of door to door selling. The gains come from sales and have a minimum amount stipulated and therefore do not qualify as a pyramid scheme.

Another case in point are companies like Fenix ​​Global, which promises to pay people who bring more investors to the platform, promising huge gains and disproportionate sales, so it can be said that Fenix ​​Global is a pyramid scheme, since only the company wins.

Just like the Solidarity Roulette pyramid scheme, which deceived many people by offering profits through referrals, other companies such as cryptonexx she was also tried and prosecuted for this crime.

Is Hotmart a pyramid?

Company Hotmart it is an affiliate platform, and although it is considered by many to be a pyramid scheme, in fact it is only an aid platform for advertisers to advertise their products.

Companies that register their products on the hotmart website have to advertise and promote the product to new users, and only then will their product be publicized.

These affiliates help to promote the product and when indicated, earn commission on top. That is, you will do a job of disclosure with chances of return proportional to the size of the sale of the product you are promoting.

This drew the company's attention to the possibility of being a great pyramid scheme, but it is only an affiliate platform.

Roulette Layout

Also mentioned above, Roulette or also known as “Giro Solidário” uses WhatsApp to publicize and promise incredible gains.

With a referral system, it promises more profits for those who refer more. Many people fell for this scam, the company asks for a minimum deposit of R $ 130,00 reais and say they can earn up to R $ 2 thousand just by referring people.

How to create a pyramid scheme?

To start a pyramid scheme, you need to have some product that seems to be essential, a great language and have a good network of people connection.

With that in hand, anyone can start the scheme and try to make money on the basis of people's good faith. But don't forget, pyramid is a crime.

FAQ

How to identify a pyramid scheme?

As much as it becomes obvious afterwards, at first it is difficult to know if you are on a pyramid scheme. As we mentioned, several of these schemes disguise themselves as multiple marketing, making it more difficult to identify. But if you notice that they are charging you a certain fee and pressing you to find people saying that only then can you earn more? Suspect, you may be being tricked.

Report pyramid scheme

Nobody to assume that you were deceived, but if you think you may be being deceived, report it, go to the Police, the IRS or even PROCON, but don't be silent. These companies always try to keep those who fell in the coup, silent. Whatever suspicion you have, look for your rights, they use a pyramid scheme to make money, or rather, your money.

Is PicPay a pyramid scheme?

As much as PicPay offers the amount of R $ 10,00 for those who invite a new user, this does not happen as a pyramid scheme. Since it cannot be converted into real money, only credit to enjoy using the company's application. What happened was. Some people in bad faith took advantage of this and started to set up a scheme where they gathered a group of people and basically started adding users and requesting the transfer of credits to their personal account.