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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
by 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 agoSo basically a Ponzi scheme where only the earliest adopters get paid and everyone is remarkably open about that?? :)
- redisman 5y agoAlmost 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 agoI 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 agoMy 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