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No, much different: In a ponzi scheme, the perpetrators will not willingly directly reveal that it's a ponzi scheme. In cryptocurrency, the perpetrators are h

No, much different: In a ponzi scheme, the perpetrators will not willingly directly reveal that it's a ponzi scheme. In cryptocurrency, the perpetrators are honest and transparent about it being a ponzi scheme, but surround it in so much techno-babble that they make it sound like a ponzi schme is what you WANT.

rchaud 5y ago
This is happening right now with the hilariously titled "SafeMoon" cryptocurrency. You can find posts on the subreddit openly asking people to buy a few million for $25 and 'gift' it to their friends and family.
- tornato7 5y ago
  The hot new Ponzi scheme is EMAX, which even has celebrity endorsement! What could possibly go wrong. If you want to see an endless number of other Ponzi coins, check out /r/cryptomoonshots
redisman 5y ago
These are not Ponzi schemes. In a ponzi you have a mechanism to distribute money to early adopters in the tree. These are just pump and dumps but you create and pre-mine the asset before pumping it. There were ponzis some years back like OneCoin and BitConnect.
- hluska 5y ago
  So basically a Ponzi scheme where only the earliest adopters get paid and everyone is remarkably open about that?? :)
  - redisman 5y ago
    Almost every scam gives money to the early adopters. It would only be a ponzi if they claimed that there was some kind of a business/mechanism that’s generating the revenue when it’s actually coming from the fools downstream from you. Usually it’s something like a guaranteed double digit interest on your money. You put the money in and receive the reward (from other people’s money) and that’s a strong psychological trigger to put more money in. You just saw it work and you have the check from the ponzi to prove it! If you just have a large amount of a worthless asset and you convince other people to buy it on the market to pump the price up (mainly via social media and “influencers” these days) and then you dump it at the top then you have a…
- namdnay 5y ago
  I think OneCoin would be classified as a Pyramid rather than "just" a ponzi - a lot of shady MLM promoters got very rich through the recruitment incentives
- realce 5y ago
  My God, I haven't thought about the word "BitConnect" in a very long time. https://www.youtube.com/watch?v=AwDbx-nuQ5o https://www.youtube.com/watch?v=AwDbx-nuQ5o
meowface 5y ago
>In cryptocurrency, the perpetrators are honest and transparent about it being a ponzi scheme, but surround it in so much techno-babble that they make it sound like a ponzi schme is what you WANT. I think this isn't quite right in all cases. I think some people know it's a Ponzi scheme and genuinely do want a Ponzi scheme. They just want to get in and out quickly. It's gambling. Sometimes you're a victim and you lose money, and sometimes it works out and you make money.

rchaud 5y ago

This is happening right now with the hilariously titled "SafeMoon" cryptocurrency. You can find posts on the subreddit openly asking people to buy a few million for $25 and 'gift' it to their friends and family.

tornato7 5y ago
The hot new Ponzi scheme is EMAX, which even has celebrity endorsement! What could possibly go wrong. If you want to see an endless number of other Ponzi coins, check out /r/cryptomoonshots

redisman 5y ago

These are not Ponzi schemes. In a ponzi you have a mechanism to distribute money to early adopters in the tree. These are just pump and dumps but you create and pre-mine the asset before pumping it. There were ponzis some years back like OneCoin and BitConnect.

hluska 5y ago
So basically a Ponzi scheme where only the earliest adopters get paid and everyone is remarkably open about that?? :)
- redisman 5y ago
  Almost every scam gives money to the early adopters. It would only be a ponzi if they claimed that there was some kind of a business/mechanism that’s generating the revenue when it’s actually coming from the fools downstream from you. Usually it’s something like a guaranteed double digit interest on your money. You put the money in and receive the reward (from other people’s money) and that’s a strong psychological trigger to put more money in. You just saw it work and you have the check from the ponzi to prove it! If you just have a large amount of a worthless asset and you convince other people to buy it on the market to pump the price up (mainly via social media and “influencers” these days) and then you dump it at the top then you have a…
namdnay 5y ago
I think OneCoin would be classified as a Pyramid rather than "just" a ponzi - a lot of shady MLM promoters got very rich through the recruitment incentives
realce 5y ago
My God, I haven't thought about the word "BitConnect" in a very long time. https://www.youtube.com/watch?v=AwDbx-nuQ5o https://www.youtube.com/watch?v=AwDbx-nuQ5o

meowface 5y ago

>In cryptocurrency, the perpetrators are honest and transparent about it being a ponzi scheme, but surround it in so much techno-babble that they make it sound like a ponzi schme is what you WANT. I think this isn't quite right in all cases. I think some people know it's a Ponzi scheme and genuinely do want a Ponzi scheme. They just want to get in and out quickly. It's gambling. Sometimes you're a victim and you lose money, and sometimes it works out and you make money.