Nothing but a scam.
Requires more people "buying" in to pay off the people who have already bought in. What happens when noone new "buys" in? No more cash to pay off others.
I agree with that. Why scam new people who are just there to have some fun and show them stars in white daylight and make false promises. We as a webmaster know that the only one profitting from it is, the webmaster himself and no one else.
I have done coding for this kind of scripts in past. But man I know the client wanted to make functions in it so that the payouts stop and the problems starts in account when someone reaches his threshold of the payments. It was not my game and I lost the client. But well I atleast saved 50 or 100 people from getting scammed.