A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors
Evaly has once again made the headlines by announcing that local conglomerate Jamuna Group is going to invest Tk1,000 crore into the controversial e-commerce company.
But fund injection is unlikely to be a solution since the problem lies in the business model that Evaly follows — one which seems like a retail version of a Ponzi scheme.
This is different from a regular Ponzi scheme, as the people who stand to lose the most from this are the customers, not actual investors.
It is also different from a pyramid scheme, which usually offers a victim the opportunity to make money by recruiting more people into the scam. As the membership pool expands exponentially, further recruiting becomes impossible and the business becomes unsustainable.