The biggest crypto lending company is a ponzi scheme
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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
#2Is the smallest crypto lending company not a Ponzi scheme? If not, then all crypto lending companies are Ponzi schemes.
Re: The biggest crypto lending company is a ponzi scheme
#3> It is possible for customers to take out USD stable coin loans from Celsius, under the condition that they provide a Bitcoin or Ethereum collateral of at least twice the value of the loan.
How does one provide Bitcoin or Ethereum collateral? Wouldn't you have to give away your private key (maybe in escrow), or transfer coins to them?
Re: The biggest crypto lending company is a ponzi scheme
#4But high yields may be sustainable given that borrowing is expensive.
Re: The biggest crypto lending company is a ponzi scheme
#5> It is possible for customers to take out USD stable coin loans from Celsius, under the condition that they provide a Bitcoin or Ethereum collateral of at least twice the value of the loan. How does one provide Bitcoin or Ethereum collateral? Wouldn't you have to give away your private key (maybe in escrow), or transfer coins to them?
"smart contracts"?
Re: The biggest crypto lending company is a ponzi scheme
#6> It is possible for customers to take out USD stable coin loans from Celsius, under the condition that they provide a Bitcoin or Ethereum collateral of at least twice the value of the loan. How does one provide Bitcoin or Ethereum collateral? Wouldn't you have to give away your private key (maybe in escrow), or transfer coins to them?
You transfer the coins into a contract or a custodian account usually. But yes, they are locked up for the duration aka not yours anymore in the private key/wallet sense.
Re: The biggest crypto lending company is a ponzi scheme
#7> It is possible for customers to take out USD stable coin loans from Celsius, under the condition that they provide a Bitcoin or Ethereum collateral of at least twice the value of the loan. How does one provide Bitcoin or Ethereum collateral? Wouldn't you have to give away your private key (maybe in escrow), or transfer coins to them?
Not necessarily. AAVE and other DeFi lending protocols maintain collateral by locking ETH or wrapped BTC in a smart contract. But I wouldn’t be surprised if that’s not the case here.
Re: The biggest crypto lending company is a ponzi scheme
#8This seems so common to me and it’s surprising how many of these ventures are around. And that they haven’t busted yet.
I looked at these a few years ago when the 5%+ returns started popping up and they are all unregulated, not fdic insured, and seem to survive on bitcoin’s ever increasing rise.
If these returns were true then institutional investors would use them. But they do seem like they should have collapsed years ago.
Maybe they aren’t run by scam artists but by people who earnestly believe that they can make money by mining and pawn it off as returns.
But not being audited is such a terrible signal. It’s weird that anyone would genuinely buy into these.
Re: The biggest crypto lending company is a ponzi scheme
#9Personally, I still feel that cryptocurrency in general is a net negative for the human race.
Re: The biggest crypto lending company is a ponzi scheme
#10We 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