Title: Dissecting Ponzi schemes on Ethereum: identification, analysis, and impact,
Abstract: Ponzi schemes are financial frauds where, under the promise of high profits,
users put their money, recovering their investment and interests only if enough
users after them continue to invest money. Originated in the offline world 150
years ago, Ponzi schemes have since then migrated to the digital world,
approaching first on the Web, and more recently hanging over cryptocurrencies
like Bitcoin. Smart contract platforms like Ethereum have provided a new
opportunity for scammers, who have now the possibility of creating
"trustworthy" frauds that still make users lose money, but at least are
guaranteed to execute "correctly". We present a comprehensive survey of Ponzi
schemes on Ethereum, analysing their behaviour and their impact from various
viewpoints. Perhaps surprisingly, we identify a remarkably high number of Ponzi
schemes, despite the hosting platform has been operating for less than two
years.