Understanding Pyramid Schemes and How Companies Like IM Academy Operate.

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A pyramid scheme is a business model that lures members with promises of payments or services for enrolling others into the scheme, rather than supplying real investments or sales of products.

While such schemes may seem like legitimate businesses on the surface, their core structure is unsustainable.

Profits depend primarily on recruitment rather than actual product value or service, and the model collapses when recruitment slows down.

How Pyramid Schemes Work

1. Recruitment Over Products: Participants are incentivized to recruit others rather than sell a product or service.
2. Exponential Growth Problem: The model relies on a continuous influx of new recruits, which becomes mathematically impossible over time.
3. Victim Exploitation: Most participants lose money, while only a small number at the top profit.

IM Academy: The Case Study

IM Academy, formerly known as iMarketsLive, brands itself as an online educational platform that offers courses on financial trading, particularly in forex, cryptocurrency, and other financial markets. While this may sound like a legitimate business, the company has faced accusations and…