Crypto’s hottest game is facing an economic maelstrom
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Re: Crypto’s hottest game is facing an economic maelstrom
#2Re: Crypto’s hottest game is facing an economic maelstrom
#3So a Ponzi scheme...
Re: Crypto’s hottest game is facing an economic maelstrom
#4I've been playing with https://euphoria.money which is a 'fork' of OHM on the Harmony block chain. It brings back memories of high-yield investment programs (HYIP), which are a type of Ponzi scheme.
I don't want to accuse them of anything, but it's a little "if it's feels too good to be true, then it probably is"
So much of the DeFI yield farming comes across somewhere between Ponzi scheme and the insanity that preceded the GFC, collateralized debt obligation (CDO) and the like.
Re: Crypto’s hottest game is facing an economic maelstrom
#5So a Ponzi scheme...
Stop calling everything a ponzi scheme. This does not resemble a ponzi scheme in almost any way. There is more than one type of scheme in the world.
This is much closer to a pyramid scheme or just a contained economy with really bad incentives
For example the Ponzi scheme version of this would be if you told people you were going to make a game with crypto as currency and told people that if they give you money to invest you will make them money in the in game currency.
You would never actually make the game or the currency, you would just keep selling the promise of making the game to more and more people and then paying out the first people with the later people's money if they decide they want out.
That would be a real Ponzi scheme. Pure cycling of investor funds with no underlying product.
If mid way through you actually decide to make the game and attempt to sell real gameplay, it's no longer a Ponzi scheme, just a shitty company. (although based on the length of the preceeding time period, it's likely what you did was still classified as a Ponzi scheme at a certain point and you still have probably broken securities laws and have liability)
Unlike Axie in which people are creating revenue in the system by buying stuff and is at least hypothetically possible to be solvent, the true Ponzi scheme by definition can never be solvent.
Re: Crypto’s hottest game is facing an economic maelstrom
#6So a Ponzi scheme...
Stop calling everything a ponzi scheme. This does not resemble a ponzi scheme in almost any way. There is more than one type of scheme in the world. This is much closer to a pyramid scheme or just a contained economy with really bad incentives For example the Ponzi scheme version of this would be if you told people you were going to make a game with crypto as currency and told people that if they give you money to in…
For those confused about the difference:
A Ponzi scheme "pays profits to earlier investors with funds from more recent investors"
A pyramid scheme "recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products"
Re: Crypto’s hottest game is facing an economic maelstrom
#7So a Ponzi scheme...
Stop calling everything a ponzi scheme. This does not resemble a ponzi scheme in almost any way. There is more than one type of scheme in the world. This is much closer to a pyramid scheme or just a contained economy with really bad incentives For example the Ponzi scheme version of this would be if you told people you were going to make a game with crypto as currency and told people that if they give you money to in…
According to the article the in-game economy relies on recruiting new investors/players in order to use the new investor/player funds to pay out returns/rewards to current players. How is that not a Ponzi scheme?
Re: Crypto’s hottest game is facing an economic maelstrom
#8> The number of Axie daily users increased by more than four times in under three months to 2bn in October, according to figures released by Sky Mavis. Analysts have now begun watching for signs of slowing growth.
In case anyone else was confused by the 2B DAU figure which would dwarf TikTok by a couple orders of magnitude, this seems to be a typo for 2M. E.g. https://www.coindesk.com/business/2021/10/05/axie-infinity-n...
Re: Crypto’s hottest game is facing an economic maelstrom
#9Crypto... Trump... when is the run for moon real estate gonna start?
Re: Crypto’s hottest game is facing an economic maelstrom
#10Earlier quoted context omitted.
Stop calling everything a ponzi scheme. This does not resemble a ponzi scheme in almost any way. There is more than one type of scheme in the world. This is much closer to a pyramid scheme or just a contained economy with really bad incentives For example the Ponzi scheme version of this would be if you told people you were going to make a game with crypto as currency and told people that if they give you money to in…
For those confused about the difference: A Ponzi scheme "pays profits to earlier investors with funds from more recent investors" A pyramid scheme "recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products"
That isn't much difference. If there is a promise of payments for enrolling others, that is still a subsidy from later to earlier investors.