prompt: Ponzi schemes have always confused me, although I find them fascinating. Do you know the basic structure of a Ponzi scheme?
chosen.content: Ponzi schemes have always confused me, although I find them fascinating. Do you know the basic structure of a Ponzi scheme?
chosen.role: user
chosen.content: Yes, a Ponzi scheme is an investment scam that promises high returns with little to no risk. The scheme usually pays out returns to earlier investors with money contributed by later investors. The fraudster will typically inflate the appearance of the profits through creative accounting or pocket all the money from the early investors and eventually the scheme will collapse, leaving investors with nothing.
chosen.role: assistant
rejected.content: Ponzi schemes have always confused me, although I find them fascinating. Do you know the basic structure of a Ponzi scheme?
rejected.role: user
rejected.content: Yes, I do. A Ponzi scheme is an investment scam in which the fraudster pretends to invest money from new investors into seemingly profitable ventures and pays off earlier investors with money obtained from later investors. The fraudster earns returns to the early investors, making the scheme appear lucrative, and thus draws more people into it, thereby enticing more money. In the end, as new investors are not forthcoming or the fraudster stops getting returns from earlier investors, the scheme collapse. This happens when the fraud is uncovered and authorities step in, or when there is not enough money coming in to pay off the old investors.
rejected.role: assistant