Just same as the Ponzi scheme, no matter their devastating effects on investors now people and even previous victims still fall for them time and time again.
Greed is a dangerous aphrodisiac. When you only see the promised returns and think how they will soon be yours, you let your guard down and stop using logic and common sense. That's when mistakes happen. Sometimes I think it is an addiction since there have been many warnings to avoid holding big amounts on an exchange or stop investing in third-party investments.
That's just a natural consequence of the modern way of life. Take cellphones as an example. Everything about them is to simplify whatever you do. Most people will take the easier and quicker route, and the one that doesn't require a lot of thinking. It's the same with exchanges. Why waste time creating your own wallets and be self-custodial when you can just deposit it somewhere where the owners "promise" that everything is safe. Many more billions of dollars will need to be wasted before self-custody becomes the standard.
