8 ms·
How is a stable coin a Ponzi scheme?
by basch 4y ago
How is a stable coin a Ponzi scheme?
- mtlmtlmtlmtl 4y agoHow is a stablecoin stable? They're stable until you get rugpulled.
- swalsh 4y agoThat was an Algorithmic Stablecoin. USDC is not, it was backed by dollars in banks with a 1:1 backing and 3rd party audited.
- EVa5I7bHFq9mnYK 4y ago"was backed" hehe
- mtlmtlmtlmtl 4y agoMany the mortgage bonds in the 2008 crisis were AAA or AA rated by a "third party". And they were dogshit. Is it audited by the SEC or some "auditing firm"?
- basch 4y agoI’ll repeat. How is a stable coin a Ponzi scheme. A Ponzi scheme pays a dividend or share of fake “revenue.” Stablecoins don’t make money, unless lent out.
- Analemma_ 4y agoHow'd that work out for it.
- dd36 4y agoWhen its assets don’t exist.
- Hizonner 4y agoThat's not what a Ponzi scheme is.
- dd36 4y agoThen what is it? A ponzi scheme is inherently an embezzlement.
- tylersmith 4y agoI think there's a shockingly large number of people that think Ponzi scheme just means fraud.
- pcthrowaway 4y agoIs a bank a ponzi scheme if its assets don't exist also? Like if a bank has $10B in customer deposits and one of their armored truck drivers escapes across the border with $2B, then some customers can't be paid back when they try to withdraw, does that make it a ponzi?
- re-thc 4y agoIf you can't be paid at all it's not a Ponzi. The point is to rely on newer funds to pay the older requests.
- selestify 4y agoBanks also rely on “newer funds” (from loan payments) to pay “older requests” (customers withdrawing their deposits). When withdrawals from old requests rise so much that they can’t be covered by new funds, banks collapse.
- basch 4y agoNot just to pay old requests. To pay revenue sharing / dividends / interest to shareholders. A Ponzi scheme is repurposing inflows to appear as revenue to a fake business.
- deleted 4y ago[deleted]
- senttoschool 4y agoPlenty of stable coins have been proven to be ponzi schemes. Terra/Luna anyone?