As the internet grows, there’s also an increase in misinformation online. Whether it comes from inaccurate data, analysis or people/businesses with ulterior motives, it’s one of the biggest unfortunate things about the internet age. So, is DubLi a Ponzi Scheme? Many people are scared of Ponzi Schemes, as many of them have been disclosed to the public in recent years. Many investors have lost a lot of money through Ponzi Schemes, especially in arrangements with people that they trusted and had invested in for many decades.

So is DubLi a Ponzi Scheme? This article is written to dispel these rumours that DubLi is a Ponzi Scheme and to dissect how it is a legal entity that in some ways, is even better controlled and managed then eBay. Do you think that eBay is a Ponzi Scheme? Probably not. So you shouldn’t think that DubLi is one. In addition, we’ll talk about a Pyramid Scheme and how that is different from a Ponzi Scheme and how DubLi is not a pyramid scheme either.

The History and Definition of a Ponzi Scheme – Things You Need to Know
In no way is DubLi a Ponzi Scheme and this is why. The scheme itself originated back in the early 1900s when an Italian, Charles Ponzi moved to the United States. In this first Ponzi Scheme, Charles Ponzi set up a system where he would reap the rewards of reply coupons for postage stamps. Basically, one investors’ money was diverted to get the next investor to fall prey and so on. But in the end, it was Charles Ponzi who pocketed the cash. According to many dictionaries, the definition of a Ponzi Scheme is basically an investment vehicle that is fraudulent. The reason is because a Ponzi Scheme pays returns to different investors from their own money OR from money paid by subsequent investors. These profits do not come from actual profits made through the business or company. By enticing new investors into the Ponzi scheme by offering great returns (in which the scheme ultimately cannot support), the system maintains and sustains itself for a while before breaking down. So is DubLi a Ponzi Scheme? Absolutely not! As some internet articles have written, DubLi is a Ponzi scheme because it uses new investor money to pay returns to earlier investors. No way! DubLi does not sell licenses, securities or any form of investments of any kind to its Business Associates. Plus, DubLi does not offer any guaranteed returns or any returns at all. DubLi is an online shopping system that sells services and products that have value, that customers receive at the lowest guaranteed rates. Therefore, DubLi is not a Ponzi scheme.

DubLi a Pyramid Scheme?
First of all, a pyramid scheme is different from a Ponzi Scheme which in turn is different from network marketing or a multi-level marketing business. A pyramid scheme differs from the Ponzi in that it has a hub where the head of the Pyramid Scheme actually deals directly with all of the investors or participants in the ‘company’. It’s similar as there is false financial incentives and hope for high rates of return, but they are different in other ways as well. Pyramid schemes also promise new money from earnings from their initial investments and they often collapse much quicker. So is DubLi a Pyramid Scheme? No, DubLi is neither a Pyramid Scheme or Ponzi Scheme.

Is DubLi a Gambling Business?
There have been many reports out of the United States that DubLi is a gambling business and that it promotes gambling online. According to the US Attorney, this is not true. No one from the federal government has been appointed to take action or to file a report against DubLi as a gambling business as it does not provide any gambling enterprise or lottery system. The people who write about these things are probably just trying to gain traffic or create fear amongst customers. Yes, we agree, there is a small ‘gambling’ aspect to the reverse auction site. However, it is no different then paying a membership fee to CostCo in order to purchase products and items at cost. No legal authority in Europe, United States or Canada has come forward with any allegations that DubLi is a gambling business.