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lovely_sombrero t1_j3rf5xi wrote

Reply to comment by domino2064 in Coinbase to slash 20% of workforce in second major round of job cuts by ChocolateTsar

The whole point of crypto (especially the exchanges) is just to take cash away from users and encourage more users to pour in actual $$$, get worthless tokens in exchange, while they run away with the $$$. Being mad at a few specific actors in the fraud chain just makes no sense, the problem is the fraud chain itself. Luna and FTX just happened to be the first big dominos to fall. Of course, there are smaller fraudtokens that fail constantly, and on purpose!

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thatoneguy889 t1_j3rflxc wrote

> take cash away from users and encourage more users to pour in actual $$$, get worthless tokens in exchange, while they run away with the $$$.

Also known as a Ponzi Scheme

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Elcactus t1_j3s8k8u wrote

Pyramid scheme. A ponzi scheme is something specific where the schemer pretends that their payouts are coming from a legitimate business venture. Poinzi himself pretended to be arbitraging mail coupons, for example, while simply paying out from the money people put in. A pyramid scheme can openly state its value is from the perception of its value, as most coins tend to.

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[deleted] t1_j3rgbfr wrote

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sjfiuauqadfj t1_j3rjepm wrote

hate to say it but i think venture capital actually brings some real world value to society while with crypto the most you get is a jpeg of my mom

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domino2064 t1_j3rk295 wrote

That ended up using a fuck ton of more electricity and ewaste to produce than what a 90s digital camera, and the process to get that photo onto a modern device and touched up, would use.

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[deleted] t1_j3rn0b9 wrote

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NikeSwish t1_j3rucvm wrote

Venture capitalists don’t just pour money into something that obviously won’t work hoping it’ll be propped up long enough to go public. Do they bet on risky companies? Yes. But that’s not what a Ponzi scheme is.

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zjm555 t1_j3rjd0f wrote

There's this hilarious ad that keeps being shown to me on reddit that says: "<Brand name> is the fastest way to turn your cash into NFTs" and I just crack up every time I read it thinking about how dumb people have to be to read that and think "hey I'm interested".

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V-Right_In_2-V t1_j3rr13u wrote

Imagine taking your hard earned money and turning it into worthless NFTs. Like why would you ever do that

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domino2064 t1_j3rfilj wrote

>The whole point of crypto (especially the exchanges) is just to take cash away from users and encourage more users to pour in actual $$$, get worthless tokens in exchange, while they run away with the $$$. Being mad at a few specific actors in the fraud chain just makes no sense, the problem is the fraud chain itself. Luna and FTX just happened to be the first big dominos to fall. Of course, there are smaller fraudtokens that fail constantly, and on purpose!

Oh I'm not mad at these specific players per se. I'm just glad that they fell, and fell hard in order to confirm and prove what actual, financial experts had been warning for many years, while the crypto cult screamed fud and sucked more people into, what is at best, an MLM and at worst, a Ponzi scheme.

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