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I think pyramid scheme would be a better description if people had different incentives depending on when they got in. With a pyramid scheme people who invite m
by gizmo 5y ago
I think pyramid scheme would be a better description if people had different incentives depending on when they got in. With a pyramid scheme people who invite many others personally benefit, and those who join but don't invite others don't gain anything. Think multi-level marketing.
- phist_mcgee 5y agoI mean NFTs fit that bill perfectly. Incentives for the late comers are to buy continually more dubious tokens that are produced by the initial round of creators. Those buyers then create a new market of lower tier creators who create even more valueless creations, and so the cycle continues. Crypto without NFTs have no creators and instead relies on the network effect of public interest to raise the value of their initial purchase. In this way, it's more akin to inventing a product and selling it on to another person and promising them that it will be worth more if they do the same.