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Who runs a decentralized Ponzi scheme (not in an abstract way)? Do you know why the scheme is named that? Hint: going on Twitter and saying "Buy DOGE!" is not a
by TAKEMYMONEY 5y ago
Who runs a decentralized Ponzi scheme (not in an abstract way)? Do you know why the scheme is named that? Hint: going on Twitter and saying "Buy DOGE!" is not a Ponzi scheme.
Ironically the author is a hedge fund founder, they are likely more acquainted with actual Ponzi schemes than a rando shilling for Compound.
(and since when are "no-loss lotteries" hallmarks of Ponzi schemes?)
- notreallyserio 5y ago"A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors." Tweeting "buy DOGE" is a great example. "Buy DOGE" really means "buy DOGE from existing investors". It's a textbook case.
- TAKEMYMONEY 5y ago> not in an abstract way No, that is market manipulation, you've made a common mistake, a Ponzi scheme is very specific. Is tweeting "Buy TSLA!" a Ponzi scheme? Do you know what Charles Ponzi's role in his scheme was? In a Ponzi, the operator actively channels the money to older investors. It's not an abstract "investors get richer" idea. Bitconnect was a true Ponzi scheme, and it used cryptocurrency. So if all cryptocurrencies are Ponzis by their nature, what makes it any different?