A Decentralized Ponzi Scheme
Updated
“Smart” Ponzi schemes.
The spread of smart contracts, i.e., computer programs whose correct execution is automatically enforced without relying on a trusted authority, creates new opportunities for fraudsters. Indeed, implementing Ponzi schemes as smart contracts would have several attractive features:
1.
The initiator of a Ponzi scheme could stay anonymous, since creating the contract and withdrawing money from it do not require to reveal her identity;
2.
Since smart contracts are “unmodifiable” and “unstoppable”, no central authority (in particular, no court of law) would be able to terminate the execution of the scheme, or revert its effects in order to refund the victims. This is particularly true for smart contracts running on permissionless blockchains, which are controlled by a peer-to-peer network of nodes.
3.
Investors may gain a false sense of trustworthiness from the fact that the code of smart contracts is public and immutable, and their execution is automatically enforced. This may lead investors to believe that the owner cannot take advantage of their money, that the scheme would run forever, and that they have a fair probability of gaining the declared interests.
All these features are made possible by a combination of factors, among which the growth of platforms for smart contracts , which advertise anonymity and contract persistence as main selling points, and the fact that these technologies are very recent, and still live in a grey area of legal systems .
This is a list of 184 known ponzi schemes based on Ethereum blockchain . Others less recognizable . For instance, they could mix multi-level marketing, token sales, and games, to realize complex smart contracts, which would be very hard to correctly classify as Ponzi schemes or legit investments
https://imgur.com/a/AgbC4eJ
Check out my twitter for more info about my trades : https://twitter.com/WagsCap
And trade with me or counter trade me here because it's better then bitmex and have no overloads and have USD as collateral (Alameda CEO) ftx.com/#a=1289183 - FTX
Or here if you want to trade
SPX 
GOLD and 
BTC at the same palce with btc as collateral and participate in paper trading competitions with 25k$ prizes with no special requirments or deposits : https://t.co/CeEldYOIDk?amp=1
The spread of smart contracts, i.e., computer programs whose correct execution is automatically enforced without relying on a trusted authority, creates new opportunities for fraudsters. Indeed, implementing Ponzi schemes as smart contracts would have several attractive features:
1.
The initiator of a Ponzi scheme could stay anonymous, since creating the contract and withdrawing money from it do not require to reveal her identity;
2.
Since smart contracts are “unmodifiable” and “unstoppable”, no central authority (in particular, no court of law) would be able to terminate the execution of the scheme, or revert its effects in order to refund the victims. This is particularly true for smart contracts running on permissionless blockchains, which are controlled by a peer-to-peer network of nodes.
3.
Investors may gain a false sense of trustworthiness from the fact that the code of smart contracts is public and immutable, and their execution is automatically enforced. This may lead investors to believe that the owner cannot take advantage of their money, that the scheme would run forever, and that they have a fair probability of gaining the declared interests.
All these features are made possible by a combination of factors, among which the growth of platforms for smart contracts , which advertise anonymity and contract persistence as main selling points, and the fact that these technologies are very recent, and still live in a grey area of legal systems .
This is a list of 184 known ponzi schemes based on Ethereum blockchain . Others less recognizable . For instance, they could mix multi-level marketing, token sales, and games, to realize complex smart contracts, which would be very hard to correctly classify as Ponzi schemes or legit investments
https://imgur.com/a/AgbC4eJ
Check out my twitter for more info about my trades : https://twitter.com/WagsCap
And trade with me or counter trade me here because it's better then bitmex and have no overloads and have USD as collateral (Alameda CEO) ftx.com/#a=1289183 - FTX
Or here if you want to trade
SPX GOLD and BTC at the same palce with btc as collateral and participate in paper trading competitions with 25k$ prizes with no special requirments or deposits : https://t.co/CeEldYOIDk?amp=1Trade closed: target reached
Close with profit.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.