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The dark side is you need a ponzi scheme to fund it. When that ponzi collapses the work stops. Good feelings are better IMO!

latchkey 4y ago
It is odd that you think of crypto as a ponzi while promoting a referral network in your HN profile.
- dekhn 4y ago
  yeah, everybody knows crypto is a pyramid scheme, ponzi schemes are specifically about a type of coupon fraud.
  - quickthrower2 4y ago
    It is structurally more like a ponzi than a pyramid. By large crypto has no MLM style referral system where the product is the business opportunity to sell the product. However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. But no cashflows are produced other than selling the investment tokens. This is almost identical to a ponzi except it has decentralisation that makes it probably legally not a ponzi. Imagine I did an IPO of a company I incorporated last night but hid behind a panama shell. That’s crypto.
    - latchkey 4y ago
      > However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. "only" is inaccurate. This was true early on before there were markets and contracts. Now we have DeFi which allows for gains on trades by anyone who wants to provide liquidity. Similar to any sort of commodity market where people buy and sell what they own (or even don't own with margin and options).
- quickthrower2 4y ago
  Yes Digital Ocean. They are not a ponzi/pyramid because 1. They sell a useful product 2. They do not charge people to be affiliates. 3. They do not sell a token/security that you buy with the intent of making future gains, funded only by other people buying the token expecting more people will do the same. If anyone uses the link ... I haven't checked ... I get some DO credit, not even money, which I will use for hobby projects. If I get $5 in credit in a year, I would be pretty suprised.
  - latchkey 4y ago
    I'm not saying it is a pyramid/ponzi. It is an affiliate marketing scheme, and those are never slimy. /s
    - quickthrower2 4y ago
      So any job in sales is slimey.

latchkey 4y ago

It is odd that you think of crypto as a ponzi while promoting a referral network in your HN profile.

dekhn 4y ago
yeah, everybody knows crypto is a pyramid scheme, ponzi schemes are specifically about a type of coupon fraud.
- quickthrower2 4y ago
  It is structurally more like a ponzi than a pyramid. By large crypto has no MLM style referral system where the product is the business opportunity to sell the product. However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. But no cashflows are produced other than selling the investment tokens. This is almost identical to a ponzi except it has decentralisation that makes it probably legally not a ponzi. Imagine I did an IPO of a company I incorporated last night but hid behind a panama shell. That’s crypto.
  - latchkey 4y ago
    > However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. "only" is inaccurate. This was true early on before there were markets and contracts. Now we have DeFi which allows for gains on trades by anyone who wants to provide liquidity. Similar to any sort of commodity market where people buy and sell what they own (or even don't own with margin and options).
quickthrower2 4y ago
Yes Digital Ocean. They are not a ponzi/pyramid because 1. They sell a useful product 2. They do not charge people to be affiliates. 3. They do not sell a token/security that you buy with the intent of making future gains, funded only by other people buying the token expecting more people will do the same. If anyone uses the link ... I haven't checked ... I get some DO credit, not even money, which I will use for hobby projects. If I get $5 in credit in a year, I would be pretty suprised.
- latchkey 4y ago
  I'm not saying it is a pyramid/ponzi. It is an affiliate marketing scheme, and those are never slimy. /s
  - quickthrower2 4y ago
    So any job in sales is slimey.