Earlier quoted context omitted.
That’s essentially it, a small town where everyone knew each other and all hung out in the same bars. I didn’t pay attention to which one it was, I do remember hearing crazy interest, like >40%. I think you also got a cut from new entrants as well, so it reeked of pyramid + ponzi.
I'm fascinated that some kind of place like this existed. I've only lived in large cities and the picture I've gotten of small towns from trips and media hasn't prepared me for the idea of a whole community that collectively buys into a get rich quick scheme.
Because if some rando tells you to join Amway or invest in AmCOIN™ you will tell them to get bent, but if it's a trusted friend, you're much more likely to be open.
It's disgusting, but it happens. And in a small town, likely everyone goes to the same church or two, hangs out at the same bar, etc. It can spread like wildfire, though usually after the first few scams it becomes known and starts to die out a bit.
Sometimes you recognize the situation and decide to "participate" (read: lose some small amount of money in the scam) to stay in the community.