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On 01/12/2022 at 20:58, DiegoDiego said:
On 01/12/2022 at 19:42, Miguel Sanchez said:
You know how get a swat team booting your door down if your taxes are 50p out? Here's a guy who ran the biggest ponzi scheme in history being interviewed on morning television:
oops!

It wasn't a Ponzi scheme though.

He was leveraging against the FTX token (which he created) then using the loans to lend to another company, looks pretty ponzi to me.

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I thought a Ponzi scheme was where you hype some worthless or over priced thing, and start spreading a family tree of buyers/salespeople who start selling it to their friends and contacts for a percentage that you have to pass up a certain share to the level above, so the further up the tree you are the more you steal. Crypto scams are just persuading people to buy magic beans imo, without the need for a network.

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I thought a Ponzi scheme was where you hype some worthless or over priced thing, and start spreading a family tree of buyers/salespeople who start selling it to their friends and contacts for a percentage that you have to pass up a certain share to the level above, so the further up the tree you are the more you steal. Crypto scams are just persuading people to buy magic beans imo, without the need for a network.
What you're describing is a pyramid scheme. Ponzi is when you get people to invest and you pay them a fake rate of return by using the money of new investors. This fake rate of return attracts more investors. Further investors are always required to continue the false rate of return. It falls apart when either you no longer get new investors or when investors ask for their money back.
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33 minutes ago, welshbairn said:

I thought a Ponzi scheme was where you hype some worthless or over priced thing, and start spreading a family tree of buyers/salespeople who start selling it to their friends and contacts for a percentage that you have to pass up a certain share to the level above, so the further up the tree you are the more you steal. Crypto scams are just persuading people to buy magic beans imo, without the need for a network.

A scheme where you hype up a worthless stock or asset to boost the price and then sell it at a high is a pump-and-dump. I think that’s what the Wolf of Wall Street guy was convicted of doing - I’ve not seen the movie so don’t know for sure. 

A Ponzi scheme is a scheme where you use funds from new investors to pay “dividends” to existing investors.

From the details, what FTX have done is more good old fashioned fraud - they told consumers that their money was invested in the exchange but it was actually being shifted to a different company and used for purposes that consumers hadn’t consented to.

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From the details, what FTX have done is more good old fashioned fraud - they told consumers that their money was invested in the exchange but it was actually being shifted to a different company and used for purposes that consumers hadn’t consented to.

It was all going well until they got big headed and spunked hundreds of millions on things like stadium naming rights. Then when the value of the coins they had plummeted and institutions started calling in their loans they had two options: 1) default and declare bankruptcy or 2) use customers funds to pay back the loans and try to ride it out. They chose #2.

I read a good analysis which said the most astonishing thing about the whole affair was how they hadn't made much more money via the Alameda/FTX relationship.
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1 hour ago, welshbairn said:

I thought a Ponzi scheme was where you hype some worthless or over priced thing, and start spreading a family tree of buyers/salespeople who start selling it to their friends and contacts for a percentage that you have to pass up a certain share to the level above, so the further up the tree you are the more you steal. Crypto scams are just persuading people to buy magic beans imo, without the need for a network.

F*ck sake man.  Make sure you’ve got your facts right before you start your own.  It could end in a right mess otherwise.

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10 hours ago, Busta Nut said:

Are people still claiming to be raking in a fortune on this stuff?

 

You will still see adverts with people posing in front of Lambos, saying you can rake in a fortune. But these are obvious shills/scammers promoting some pointless asset.

From experience 'people' have made life changing money from certain digital assets, but if someone says that they have made a fortune over the last year and a half in crypto then I would struggle to believe them.

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24 minutes ago, DiegoDiego said:

Any time I see someone in a flash car these days my first thought is "you've rented that in an attempt to impress folk you sad b*****d".


https://www.scotsman.com/news/i-gave-missing-luxury-cars-museum-says-ex-hearts-star-christian-nade-1716078
 

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