Personally, I still feel that cryptocurrency in general is a net negative for the human race.
This viewpoint really discounts the experiences of those living in countries with rampant inflation or hyperinflation.
The biggest crypto lending company is a ponzi scheme
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Re: The biggest crypto lending company is a ponzi scheme
#112Crypto 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.
How is spending $1 000 000 on a "virtual image" (NFT) any different than spending it on a Picasso? There are equivalent/superior copies of both readily available, but some people value provenance ...
The Picasso is truly scarce. The NFT is artificially scarce.
Re: The biggest crypto lending company is a ponzi scheme
#113Re: The biggest crypto lending company is a ponzi scheme
#114I'm not a fan or user of Celsius, but this is an incredibly inflammatory title with very little evidence to back it up. Claims like that demand greater proof. This is an incredibly lazy article The author pretty much failed to do any research on DeFi investments (point 3 in the OP). Compound and Aave are just 2 of many places investors place their assets, and are definitely near the lower end of APYs. Badger, which C…
This. Plus, if you deposit Eth on Aave, it's not for the 1% returns but because it then allows you to borrow other coins which you can use somewhere else in DeFi, where it can bring you much higher returns (convex/curve for instance).
I'm amazed that this guy wrote such a big article on a topic he obviously doesn't fully understand.
Re: The biggest crypto lending company is a ponzi scheme
#115Given what this expose says about institutional lending not being able to account for high ROI, how is Gemini Earn[0] able to offer up to 8% on GUSD and slightly less on other coins? Gemini is audited and says all GUSD Earn backing funds are FDIC insured up to 250k. Definitely concerning.
Re: The biggest crypto lending company is a ponzi scheme
#116I think a few posts here are conflating crypto currencies, NFTs and crypto lending in stablecoin for "too good to be true" interest. The article focuses on the last point, which rings absolutely true to me. Offering huge yields (> 8%) while removing the crypto volatility (dealing in stablecoin, effectively making all transactions and amounts look, to an external user, as if made with regular bank in dollars) cannot e…
Which ones of them guarantee yield?
Re: The biggest crypto lending company is a ponzi scheme
#117I'm not a fan or user of Celsius, but this is an incredibly inflammatory title with very little evidence to back it up. Claims like that demand greater proof. This is an incredibly lazy article The author pretty much failed to do any research on DeFi investments (point 3 in the OP). Compound and Aave are just 2 of many places investors place their assets, and are definitely near the lower end of APYs. Badger, which C…
So instead of actually debunking his arguments you published a handwavy reply? I very much think that if someone is offering insanely high ROIs but does not divulge how the value is created, you can safely assume it's a scam, and simply pointing out the disparity suffices as proof to me at least.
I don't know what happens behind the scenes at Celsius.
I do know there are many ways to get those high ROIs in DeFi.
With zero evidence suggesting they are lying about returns, the charitable guess I can make is that they are getting high DeFi returns and giving their customers slightly lower ones after taking a cut.
Re: The biggest crypto lending company is a ponzi scheme
#118Lending money (with interest obviously) is a ponzi scheme. It's not surprising to be honest, and this shouldn't be news. We've known this for literally thousands of years now. It has nothing to do with crypto currencies per se.
Ponzi schemes don't lend money to anyone, they just shuffle money from late investors to early investors.
Re: The biggest crypto lending company is a ponzi scheme
#119I don't really get all the "crypto is a Ponzi scheme" responses. This is about one company probably being shady with their books and claims. It's like saying Bernie Madoff built a Ponzi so USD is a Ponzi. Maybe crypto is a Ponzi, but this article is no evidence at all besides a hot market that provides the chum for sharks. It's very reminiscent of the housing bubble and the insane claims and over leverage (which is what they are probably doing in part).
Re: The biggest crypto lending company is a ponzi scheme
#120We 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
Im naive, can you explain the scammy VPN industry to me?