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Crypto’s hottest game is facing an economic maelstrom

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Re: Crypto’s hottest game is facing an economic maelstrom

#11

Post by JohnJamesRambo »

sodality2 wrote: post #6
anm89 wrote: post #5

Earlier 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"

Can anyone outline how either of those are different than pre-IPO investors in WeWork etc cashing out on the retail masses? Or pretty much any non-dividend stock that exists?

Re: Crypto’s hottest game is facing an economic maelstrom

#13

Post by [deleted] »

elliekelly wrote: post #7
anm89 wrote: post #5

Earlier 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…

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?

[deleted]

Re: Crypto’s hottest game is facing an economic maelstrom

#14

Post by EMM_386 »

vertis wrote: post #4

I'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 prece…

Just looking at that home page, they are saying the APY is 725,002.4%.

If that isn't an insane red flag, I don't know what is.

Re: Crypto’s hottest game is facing an economic maelstrom

#15

Post by daenz »

I wonder if, in the future, a significant portion of the population will have a full time job playing one of these crypto games. They'll be paid based on their in-game social achievements, which will include things like "cares for the (virtual) environment", "demonstrates commitment to diversity", "encourages others to follow health mandates", "uses de-escalation techniques in conflicts." New mission types and achievements can be added dynamically by the local, state, and federal governments, to adapt rapidly to the current political environment. In order to receive your monthly housing and food credit stipend, you must regularly complete these activities.

There will be no need for traditional work for many people, as every person will have access to the game world through their mobile device and biometric signin.

Re: Crypto’s hottest game is facing an economic maelstrom

#16

Post by LargeWu »

elliekelly wrote: post #7
anm89 wrote: post #5

Earlier 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…

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?

This seems like it's somehow both a pyramid scheme and a Ponzi scheme.

AFAIK, there's nothing inherently illegal about pyramid schemes, but they are often marketed in a fraudulent way.

Re: Crypto’s hottest game is facing an economic maelstrom

#17

Post by rvnx »

elliekelly wrote: post #7
anm89 wrote: post #5

Earlier 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…

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?

Is it different from Bitcoin or Dogecoin ?

Re: Crypto’s hottest game is facing an economic maelstrom

#18

Post by rzzzt »

LargeWu wrote: post #16
elliekelly wrote: post #7

Earlier quoted context omitted.

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?

This seems like it's somehow both a pyramid scheme and a Ponzi scheme. AFAIK, there's nothing inherently illegal about pyramid schemes, but they are often marketed in a fraudulent way.

Pyronzi scheme it is, then.

Re: Crypto’s hottest game is facing an economic maelstrom

#19

Post by 4512124672456 »

JohnJamesRambo wrote: post #11
sodality2 wrote: post #6

Earlier quoted context omitted.

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"

Can anyone outline how either of those are different than pre-IPO investors in WeWork etc cashing out on the retail masses? Or pretty much any non-dividend stock that exists?

https://en.wikipedia.org/wiki/Stock

Re: Crypto’s hottest game is facing an economic maelstrom

#20

Post by reggieband »

> Andreessen Horowitz’s cryptocurrency fund made one of its largest investments to date in Sky Mavis, leading a $152m financing that valued the company at $3bn.

> Sky Mavis, which takes a 4.5 per cent cut of transactions within the game, has made about $1.2bn of revenues

I mean, say what you want about this being a scam, ponzi scheme, etc. That is some real cash.

I saw this game popping up on Twitch a few months ago and immediately realized it was some kind of crypto scheme. I thought it was gambling. The fact that this is generating billions of revenue and attracting hundreds of millions of brand-name financing amazes me. The game was released in 2018, about 3 years ago.

It really makes me reconsider the group-think on hacker news. To write off this activity as a scam or criminal seems to be missing a bigger picture that we don't quite understand yet.

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