Though bad actors are using cryptocurrencies as a medium with which to conduct Ponzi-like schemes, crypto itself isn't a Ponzi scheme.

For one thing, tokens like bitcoin (BTC) and ether (ETH) do hold value, even in down markets and don't depend on inflows of new money to pay off investors. Rather, holders of these tokens can exchange them for other items of value, or fiat currency, any time they can find a counterparty willing to take their crypto.

There is no central entity giving these tokens the illusion of value, but instead, the investing public’s willingness to pay $17,000 or $21,000 or $68,000 for one bitcoin determines the ultimate market value of the token.

The most popular cryptocurrencies are able to deliver value in and of themselves without the manipulations of a Ponzi scheme operator.