A Ponzi scheme is, in effect, the promise of offering more on a return than one can possibly deliver given all variables as compared to normal market returns. Again, it falls under the auspices of, "If it sounds to good to be true, it probably is."

From Wikipedia:

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme

This is why I said, 'or something like it'. My biggest caveat with all this is that initially Roberts said he had secured 10-20 million in private funding - I can't recall the specific number. But...since the initial KS was so good he wasn't going to use that money and instead continue on with crowdsourced money. No problem there...except...that means there were agreements. No one forks over that sort of dough without some expectation of a return. So, you don't just turn around, hand the money back and say 'Thanks, but no thanks' when you're talking that sort of cash. There would have to be some consideration for those investors.

Couple that with the lack of transparency about how the MP/MMO aspect of the game is going to work - except you can "buy" insurance and other things for real money and it's all just an opaque mass of what's coming from where and how it will all really shake out in the end.

Joe large MMO starts and says "We're charging $15 per month." Even if they go F2P later you know where they stand. This hasn't been explained in any real detail here beyond you can earn things or buy things. If that doesn't warrant some pragmatic caution then I don't know what else to say.

Again, even with my misgivings - and those of others - we'd actually like to see this work - and prove us wrong. Because that really will usher in a new era of gaming. But if it doesn't...it's going to fuck up a lot of shit for everyone coming behind this.

Maybe you've never been burned for money in your life. I have on several occasions so that's why when I see vague promises without a lot of concrete details that alarm bells start going off for me. And not only don't I want to get burned, but I don't want others to either. So, please, take our cautions with a big grain of salt. We're not trying to be dicks about it, we just don't want to see any of you guys get conned either - by anyone, ever!