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The biggest crypto lending company is a ponzi scheme

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Re: The biggest crypto lending company is a ponzi scheme

#21

Post by edem »

obayesshelton wrote: post #15

Crypto and NFT is one big ponzi scheme. Who on earth is spending $000,000s on a virtual ship? I sense it is a case of somebody close to the NFT or virtual world buying the asset and making out it is a great thing and then selling it on quickly. Many a scam involves somebody from the group buying something so the unwilling feel like it safe. As always, don't be left holding the baby.

You obviously don't understand any of this. Is USD not a ponzi scheme? Is Quantitative Easing not a ponzi scheme? Is MMT not a ponzi scheme?

Re: The biggest crypto lending company is a ponzi scheme

#23

Post by mciancia »

obayesshelton wrote: post #15

Crypto and NFT is one big ponzi scheme. Who on earth is spending $000,000s on a virtual ship? I sense it is a case of somebody close to the NFT or virtual world buying the asset and making out it is a great thing and then selling it on quickly. Many a scam involves somebody from the group buying something so the unwilling feel like it safe. As always, don't be left holding the baby.

> Who on earth is spending $000,000s on a virtual ship?

Money laundering?

Re: The biggest crypto lending company is a ponzi scheme

#24

Post by adventured »

namdnay wrote: post #11
paulpauper wrote: post #4

But high yields may be sustainable given that borrowing is expensive.

> it's not like individuals can just borrow at 1% like majors companies can do. with 200% collateral? I'm pretty sure they can. I don't know what's it's like in hte US, but in the eurozone, long term home loans are around 1% , and even short term consumer loans are between 1-3%

That depends on what part of the Eurozone you're talking about. Fixed rate, long-term mortgages in eg Spain are nowhere near 1% (closer to 3%).

Re: The biggest crypto lending company is a ponzi scheme

#25

Post by anonymoushn »

paulpauper wrote: post #4

But high yields may be sustainable given that borrowing is expensive.

As a crypto fund we're willing to borrow at pretty high rates but Celsius's offering of overcollateralized borrowing is not useful to us. They have disclosed that they offer undercollateralized borrowing to some crypto funds. I suppose it is not easy to get on that list.

Re: The biggest crypto lending company is a ponzi scheme

#26

Post by toyg »

KoftaBob wrote: post #14

The early "wild west" days of new concepts/ideas tend to attract scammer types like this. For the most part, it tends to level out over time and the fraudulent parties are dealt with.

... once legislation is brought in. The market itself has no way to curb excessive behaviour.

The problem is that cryptocurrency users exist precisely because they oppose all legislation on currency markets. So they will continue to be scammed over and over again, and be happy with it. It's just the cost of doing business, like drug dealers losing a few shipments to the feds.

Re: The biggest crypto lending company is a ponzi scheme

#27

Post by joren485 »

The (centralized) crypto lending space has been slowly imploding in the past year. Most companies give a promotional rate on the first coin(s), but will pay very little interest on any large amount.

A detailed analysis of the various players in the space: https://prohashing.com/guides/earning-interest-on-crypto

Re: The biggest crypto lending company is a ponzi scheme

#28

Post by toyg »

adventured wrote: post #24
namdnay wrote: post #11

Earlier quoted context omitted.

> it's not like individuals can just borrow at 1% like majors companies can do. with 200% collateral? I'm pretty sure they can. I don't know what's it's like in hte US, but in the eurozone, long term home loans are around 1% , and even short term consumer loans are between 1-3%

That depends on what part of the Eurozone you're talking about. Fixed rate, long-term mortgages in eg Spain are nowhere near 1% (closer to 3%).

In the UK they are sub-2% if your loan/value ratio is decent (i.e. under 70%).

Re: The biggest crypto lending company is a ponzi scheme

#29

Post by criddell »

WFHRenaissance wrote: post #19
gentleman11 wrote: post #10

We keep expecting crypto to die but then again, we still have antivirus software that is spyware (avast), a scammy vpn industry, and a thriving anti vax movement. No matter how absurd it is, it might stick around for a long time now

I'm not a huge fan of the the current cryptocurrency scene, but I think it will remain very useful as a medium of exchange and store of value in unstable parts of the globe for years to come.

It will remain a very useful medium of exchange? Are you saying that today it is a very useful medium of exchange? Are you using it that way?

Re: The biggest crypto lending company is a ponzi scheme

#30

Post by MathYouF »

obayesshelton wrote: post #15

Crypto and NFT is one big ponzi scheme. Who on earth is spending $000,000s on a virtual ship? I sense it is a case of somebody close to the NFT or virtual world buying the asset and making out it is a great thing and then selling it on quickly. Many a scam involves somebody from the group buying something so the unwilling feel like it safe. As always, don't be left holding the baby.

They call it a con because it involves instilling "confidence" in others.

High sale prices are one way to inspire confidence in others.

Whether that person thinks the sale price is a legitimate indication of value, or they think at least someone else down the line will believe that, is not always clear. Because of the nature of crypto anonymity, there's always at least some percent chance any given sale is a legitimate transaction between two unique and non-colluding parties, and vice versa.

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