PonziCoin - a Ponzi Scheme Example
About this model
This diagram models the dynamics of a Ponzi scheme through the simulation of investor behavior and PonziCoin economics, using elements such as coin generation, investor influx, and the fluctuating price of PonziCoin. Initially, the system generates coins and attracts new investors. With each new investor, the demand for PonziCoin increases, which in turn might boost the generation of new coins and affect PonziCoin price variability. The model intricately simulates how the influx of investors and their investment behavior—reflected through registers calculating investors' growth and the demand for PonziCoin—affects the overall scheme's sustainability and the PonziCoin's price dynamics.
Specifically, investors are attracted to the scheme over time, represented by the steady addition to the pool of new investors, which triggers adjustments in coin generation based on the scheme's perceived attractiveness. Meanwhile, the PonziCoin's price is subject to volatility, modeled as being influenced by random factors, as well as the scheme's ability to meet demand, which is computed through registers based on the number of investors and the generated PonziCoin. The interconnections within the diagram showcase how investor growth and demand for PonziCoin potentially increase the amount of new PonziCoin generated, while also capturing the scheme's eventual collapse when demand cannot be met, represented through drains automatically removing investors or coins from the system, signifying their loss or the scheme's failure to sustain itself.
"PonziCoin - a Ponzi Scheme Example" is a public Machinations diagram shared in the Community by Bogdan Florea, with 29 components.
It was created in June 2022 and last edited in September 2022.
Open the diagram in the Machinations app and press Play to watch the resources move, adjust its values to test how the system responds, or remix it to make an editable copy in My diagrams.
