Pyramid schemes, MLMs, and even Ponzi schemes are very popular in developing countries. Strangely, participants seem to pile in despite knowing up front that they’re joining a scam.

I think people have recognized that MLMs, pyramid schemes, and Ponzi schemes are lucrative for early adopters and those at the top. Instead of avoiding the scheme altogether, they’re racing to cash in early before it collapses. It’s a gamble that they’ll be on the right side of the trade before it runs out of steam. The power of “but what if it works...”

Some of the more blatant Ponzi schemes operate in the open for years in developing countries. There can even be public outrage when governments try to intervene because so much of the population is invested in these schemes in one way or another. A good example is MMM global: https://en.wikipedia.org/wiki/MMM_Global