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Bitcoin Ponzi scheme

ponzi.io

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Re: Bitcoin Ponzi scheme

#122

Post by gojomo »

dwaltrip wrote: post #60

No one finds this repulsive? People will lose money to this. Yes, they are dumb, yes it is obvious. But those who participate are still morally complicit. Enabling others who suffer from serious issues (addiction, gambling) seems like a pretty shitty thing to do.

It's as repulsive as state-run lotteries.

The expected return to entrants, over all entries through its collapse, is likely even better than lotteries.

At least this isn't advertising on TV and YouTube to attract even more vulnerable and unsophisticated players!

Re: Bitcoin Ponzi scheme

#123

Post by [deleted] »

gburt wrote: post #81
mmaunder wrote: post #66

snip Ponzi Scheme Enforcement Actions Curtailing Ponzi schemes and holding those responsible for these scams accountable is a vital component of the SEC's enforcement program. Since fiscal year 2010, the SEC has brought more than 100 enforcement actions against nearly 200 individuals and 250 entities for carrying out Ponzi schemes.1 In these actions, more than 65 individuals have been barred from working in the secur…

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. With little or no legitimate earnings, Ponzi schemes require a constant flow of money from new investors to continue.…

[deleted]

Re: Bitcoin Ponzi scheme

#124

Post by cdcarter »

thrush wrote: post #93
ilya89 wrote: post #86

Earlier quoted context omitted.

my thought process is: one large BTC pool. all transactions are feed into the pool. the order of the deposits dictate priority of withdrawal. Owner does not skim the transactions, only makes a large initial deposit and then markets the site like crazy. Big assumption here is that he is running an "honest" ponzi operation.

why would he even need an initial deposit? he can simply delay to pay people until enough other people have paid.

So that he can "honestly" take the 20% additional of that first deposit.

Re: Bitcoin Ponzi scheme

#129

Post by bbosh »

It is either a scam or very poorly coded. I've seen one transaction in the blockchain for 7BTC from yesterday that hasn't been paid. But, people sending 0.01BTC today are being paid. Any proper Ponzi scheme would pay back in time order, not by order of value.

Re: Bitcoin Ponzi scheme

#130

Post by eschaton »

mmaunder wrote: post #99
gburt wrote: post #81

Earlier quoted context omitted.

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. With little or no legitimate earnings, Ponzi schemes require a constant flow of money from new investors to continue.…

Yeah IMHO it walks the line between ponzi and pyramid scheme, so you'll either have the SEC or FTC coming after you. e.g. FTC has been hassling MLM schemes for years and they argue the differentiator is the fact that there's a product involved, but this clearly does not have a product, so best case the FTC shuts it down, worst case the interested agencies will include FTC, SEC, U.S. postal service and local and state…

If you've been following what's actually gone on in the Bitcoin world for any length of time, you'd know that "BTC investors" aren't "more sophisticated" - they tend to be less so.

For one example, take a look at the people in the community who claim BTC exchanges are unregulated, and who "invest" in "stock markets" in BTC and the like: Just because you're not following the law or regulation doesn't mean you're not subject to it. It just means your hoping you don't get caught.

Another example? The pirateat40 Ponzi scheme and the creation of "Pirate pass-through" schemes. He claimed to offer 7% interest WEEKLY and Bitcoiners ate it up despite its obvious impossibility. And again they tried to securitize that by selling "shares" in and/or "insuring" their investments, and so on—all without acknowledging there's any form of legal or regulatory process to go through when doing such things.

Bitcoin is a total clown show, the history of economics repeated in fast-forward so anarcho-capitalists/libertarians can learn first hand why laws and regulations were invented.

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