But that is the exact definition of a Ponzi scheme, and at one point one of 2 things will happen:

1. They will stop recycling, and the price of EOS will crash causing people to lose money.
2. People stop buying into the ICO due to rising ETH/EOS price pair, EOS is devalued resulting in over $200M stolen from the crypto economy.

#1 leads to #2 through a natural progression so in either case this is a huge theft both in the digital realm and the world financial markets, and crypto accounts for around 0.15% of the ENTIRE world economy. So it's no surprise that the US intel and forces are at war with crypto.