tnx man, the debates started at the end of 2018 because I had to explain to myself the reason why I should quit my job and start full time “crypto”.
In my opinion highest APY can be achieved when capital allocation is based on great fundamentals. “Displayed APY” on most DeFi dapps has more marketing intentions and it won’t last long.
agree with you, scams/ponzi always takes shape of a current trend - from cloud mining, ICO, DeFi, NFT etc.
If I were you I won’t quit my job for full time crypto…it would be disastrous on my own side…
Great write up @domik
Cryptocurrency can be compared to ponzi schemes in one aspect.
And on another hand, it’s not. Some cryptos could be used for payments and other things. But the scam tokens (pump & dump) makes the entire crypto world look like a ponzi scheme. Which is basically not true
Thanks for sharing the wisdom and I agree with rebase tokens and them not being the easiest thing to trade/invest in without a solid fundamental understanding as well as technicals for entries and exits
Great point pointing out that aspect… really true…
Cryptocurrency may seem like a ponzi scheme at the end of the day they are private digital currencies which have value ONLY amongst its users. But a critical point here would be the ‘nature of the users’, if they hold it for a short term purpose considering significant returns or for money laundering & illegal purpose or they hold it for a long term purpose (with or without any motivation), in which case it can be compared to a commodity.
So the role of the users, more specifically the nature of their transactions could answer the question whether the rapid growth of Cryptocurrency can be compared to ponzi scheme (or not).
If you think an investment is a Ponzi scheme or any other type of scam, or you’ve been victimized, file a complaint with the Securities and Exchange Commission, FINRA and your state securities regulator (here’s a North American Securities Administrators Association list). One sign that you’ve put your money into a Ponzi scheme is that you’re unable to obtain promised payments or cash out. Some scammers offer investors even higher returns to discourage them from departing, says the SEC. Also see
Ponzi schemes often involve unregistered investments, says the Securities and Exchange Commission (SEC). Start by asking the person offering the investment: If the investment isn’t registered, ask why (not all investments must be registered). If you’re told it is, verify by following the advice FINRA provides for checking the Securities and Exchange Commission’s EDGAR database, your state securities
Why? If we want to create system without intermediaries and centralized control systems, we need take responssibilities for our actions.
Ponzi scheme and other scams are part of ecosystem and in my opinion they play an important role in it, because they encourage users to constantly learn, develop their due diligence frameworks and of course - do not invest capital ($ or time) in projects they do not understand.
In the decentralized online world, we may not need a brokerage certificate to invest, but we still need a brain.
True to that… but I won’t agree to the fact that ponzi schemes are part of the ecosystem…we can learn and develop due intelligence even without being scammed
Scams exist only because someone has invested in them. My opinion is that they serve as a certain filter for poor capital allocation, after all scams and their victims have the same goal - fast and easy money.
If there are corrupt and naive people among the population decentralized and permissionless online platforms are ideal places for their meeting.
I agree with you, it’s possible, but the fact is that a lot of people don’t do that
Many cryptos being a Ponzi, I’m not going to debate that atm, does not mean that cryptocurrency is a Ponzi.
Look at mlm’s for example.
Lularoe is a Ponzi scheme, as an mlm, but you can’t say leggings are a Ponzi scheme- not even poorly made moldy leggings, which Lularoe sent its “investors” to sell.
Yes, I agree with you. When I said a big percentage of cryptos are a Ponzi I meant the projects are a ponzi, not the actual cryptocurrency itself.
But in crypto if that project is a ponzi, so is the actual crypto of that project 
. If other use cases are not present