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BLUR & Blast Founder Responds to Rumors of Ponzi SchemeBLUR founder Packman clarifies recent yield surge, attributing it to on and off-chain economics, dismissing Ponzi scheme concerns. The BLUR token has ignited the altcoin market, experiencing an impressive 100% gain in the past week following its recent listing on the Binance crypto exchange. Despite the meme-filled enthusiasm within the crypto community, rumors have emerged, speculating about BLUR’s potential association with a ponzi scheme. Blur founder Clears the Air In response to circulating memes and misconceptions about Blast, BLUR founder Packman took to social media to set the record straight on certain key points. One prevalent meme suggests that Blast operates as a Ponzi scheme due to the seemingly attractive yield it offers. Packman explains that Blast’s yield is sourced, initially, from Lido and MakerDAO. The yield from Lido, according to Packman, originates from Ethereum staking yield, an integral part of Ethereum’s Proof-of-Stake consensus mechanism. On the other hand, MakerDAO yield comes from on-chain T-Bills, which are debt obligations from the US government. Packman emphasizes that these yields are not unsustainable and are fundamental components of both on-chain and off-chain economies. The reason Blast’s yield may seem too good to be true, as per Packman, is that Blast makes this yield the default for all users, effectively democratizing higher yield. Addressing another meme, Packman dismisses the notion that Paradigm played a role in Blast’s launch, stating unequivocally that Paradigm had zero involvement in Blast’s go-to-market (GTM) strategy. While acknowledging Paradigm’s expertise in research and technical L2 design (going live in February), Packman emphasizes that they do not consult with Paradigm on GTM, keeping those aspects internalized. Packman acknowledges that Paradigm has provided post-launch suggestions, which are actively under consideration. He praises Paradigm as a research powerhouse and appreciates the collaborative relationship where trusted entrepreneurs make final decisions, highlighting one of the reasons he enjoys working with the Paradigm team. FUD Around Blast Invite Rewards In response to circulating FUD (Fear, Uncertainty, Doubt) regarding Blast’s invite rewards, BLUR founder Packman clarified that the invite system is not a new mechanism but a well-established concept that has been in use for a considerable period. Explaining the rationale behind Blast’s invite mechanism, Packman emphasized the pivotal role of the community in the project’s success. Acknowledging that Blast’s vision heavily relies on community contribution, Packman highlighted that the goal is to foster the on-chain economy with the highest-yield Layer 2 (L2) possible, and achieving this ambitious vision requires collective effort. In Packman’s view, contributing to an L2 can take various forms, including being a developer of the underlying protocol, creating applications on top of the L2, or being a user of the L2. Drawing an analogy, he likened the community to the people in a city, emphasizing that users who help make Blast a thriving L2 by bringing in friends are providing genuine value to the ecosystem and, therefore, deserve to be rewarded. This, Packman stated, is the fundamental reason why invite rewards exist within the Blast platform. As of press time, BLUR is trading at $0.60 with a market cap of $691 million. There’s been a heavy accumulation of BLUR by whales recently. This can further take the BLUR price to $1.
Long
by DEXWireNews
Prisoner No. 61727-054Bernie Madoff and the Split-Strike Conversion Bernie Madoff used a strategy of buying put options in SPX and selling calls. Then, he bought stocks which he carefully selects. This mixture produces very stable returns and is one of the best strategies in options and commonly used among hedge funds today. Split-Strike Conversion is a dressed up name Madoff used for a simple collar strategy. Essentially, collars limit both the losses and gains for an investor who has bought a particular stock. Today, all firms and funds use similar strategies to maintain long term steady growth. See my ideas on how a large equity fund (17 billion) use simple quarterly options to produce the same steady growth. Rise to Fame Madoff was not part of the Wall Street crowd and started his investing career in penny stocks the same way Jordan Belford did as portrayed in the Wolf of Wall Street. Madoff became wildly successfully claiming his split-strike conversion was the best way to make large and steady returns. Madoff was consistent in generating 10-20% per year in 1992 which wasn’t that far off the S&P 500 annual return. Trouble started for Madoff when he was reporting an undisclosed commission instead of a standard hedge fund fee. Madoff was active on Wall Street from 1960 until 2008 when his fund collapsed under the pressure of the Great Financial Crisis. Deposits and Redemption, the Ponzi scheme Madoff’s Ponzi scheme was simple. Claim big returns to investors to generate more deposits then redemptions. His fund looked very enticing, I can see why he generated billions of dollars in inflows. Bernie would simple pay people wanting to cash out with the money new investors would bring in. It makes me think that Madoff would have been a crypto God had he not been so arrogant as to not expect a financial crisis. Mark Twain said, “History never repeats itself, but it does often rhyme” How many other Madoff like schemes are out there today, just cruising under the radar until the next financial crisis. Look what recently happened with all the crypto funds collapsing as bitcoins price bears down to lowest prices since its rise to glory. Are these signs of a much broader problem or are they just the outliers getting their just deserts. Thanks for reading, please boost if you enjoyed the idea and follow @spyvsgme for more ideas published regularly.
TVC:SPX
by SPYvsGME
5
BTC The worlds greatest ponzi scheme in history.So how long will it take for the world to realize what a giant disaster this ponzi is. It does not produce anything but waste, waste of energy and resources. The only way price rises is with new buyers, and the majority of it is held by only 3% of individuals which is hilarious in itself. But feeding on the hopes and dreams of people, it lives. This has become the worlds largest manipulated casino, this brings a new meaning to the house always wins and it is controlled by a very small group. I cant even begin to understand how people do not see it, probably blinded by greed and delusions which they cannot override because of human nature.It definitely is one of the most entertaining spaces to observe. In essence the worlds greatest game, play from anywhere. And the best part is every new player has to pay off all the existing players. So far the first rise was a speculative frenzy based on the narrative of "its the future", the second was an outrageous increase in the money supply and big players knowing they could fleece the uninitiated. I wonder what the new narrative will be? One thing is for sure people do not change, so be smart get in and get out, make your money and do not be greedy. It became worse than the system it was supposed to replace, it failed. Or maybe its doing exactly as its creators intended.
BITSTAMP:BTCUSD
by MCMLXXVII
16
LUNC Terra Classic Ponzi SchemeThe collapse of Terra's LUNA and TerraUSD cost investors over $40 billion. Some of them lost their lifetime savings, others lost borrowed money and some even committed suicide. This project made investors lose trust in the crypto space as well. The CEO of Terraform Labs, Do Kwon, is facing criminal charges for building a Ponzi scheme in South Korea, Terra investors being victims of fraud. Billionaire Bill Ackman also considered the project to pyramid scheme. Do Kwon was the one behind Basis Cash, another failed algorithmic stablecoin in which people lost $54 million. Terraform Labs also lost US Appeal Securities and Exchange Commission Subpoena. I don`t see a future for this project. There is a chance that its founder, Do Kwon, end up in jail if the criminal charges for building a Ponzi Scheme will turn out to be true.
Short
by TopgOptions
20
LUNA Ponzi SchemeThe collapse of Terra's LUNA and TerraUSD cost investors over $40 billion. Some of them lost their lifetime savings, others lost borrowed money and some even committed suicide. This project made investors lose trust in the crypto space as well. The CEO of Terraform Labs, Do Kwon, is facing criminal charges for building a Ponzi scheme in South Korea, Terra investors being victims of fraud. Billionaire Bill Ackman also considered the project to pyramid scheme. Do Kwon was the one behind Basis Cash, another failed algorithmic stablecoin in which people lost $54 million. Terraform Labs also lost US Appeal Securities and Exchange Commission Subpoena. I don`t see a future for this project. There is a chance that its founder, Do Kwon, end up in jail if the criminal charges for building a Ponzi Scheme will turn out to be true.
Short
by TopgOptions
4
LUNA 2 USD : LUNA IS READY TO TAKE A CRAP! IM OUT! LUNA2 looks primed and ready to dump to really low levels. This new coin was a pump and dump and nothing more. The wedge broke through to the downside and a measured move to at least $2.70 and then probably further down as new speculative investors and holders hoping for a real revival are going to dump. It will dump really fast because there aren't that many buyers on exchanges and once the fall starts its going to be nasty. I got out at $12 at the last peak, and I was waiting for confirmation to buy back in and ride the next wave up but that never happened, and chances are now that there wont be any pump. I'm taking my 200% profit and running with it on this one guys. This thing is going to disappear off the map real soon! Good luck my friends. This is not financial or trading advice, just my opinion. If you like this content then like and follow me for updates and more analysis on your favorite coins. If you have any coins you want me to check out let me know in the comments.
KRAKEN:LUNA2USDShort
by Bitgolder
4
ENS “Dao token” back to 3$ This ponzi called ens came out this week and I think it’s going to be one of these pump and dump style coins coming into the market with a bang and then slowly bleeding to single digits. What I would like to do is wait for Coinbase to list ens and short the hell out of it after the next mega pump! If this ponzi pumps to $65 again then short it, it’s litterally worthless, these delusional kids think a domain registrar is worth billions, haha well your gonna see what it’s worth soon after all the insiders that got tens of thousands of free tokens dump on you idiots that came in and bought it after they airdropped it to an entire community who just lost their asses buying ponzi jpegs for ungodly amounts of money.
Short
by WalrusFat
23
About Bitcoin, Pyramids and UnicornsI have talked about why BTC is not a Ponzi extensively in private chats and some charts comment-section in the past (which for the live of me, i can no longer find?). The subject keeps coming up so here it is for future references. A Ponzi/Pyramid scheme pays older/initial "investors" with money from newer "investors" - at some time one runs out of "greater fools" and the scheme collapses, leaving the last at a loss. Person A promises something to a few people. Person B, C, D, E, F, G. H and I. "I got this great thing .. you give me 50$ and I 'guarantee' you'll get 75$ back .. tell your friends too .. you'll see" They go along and sure enough the money comes in. Person A takes the money from D, E and F (total of 150$) and gives 75$ of those to B as promised, he also collects 150$ from G, H and I and in turn pays C the 75$. The remaining 150$ ... ;) More people hear about this. The greater fools .. keep finding them idiots to fuel the scheme. There are many variations on the scheme, DYOR. Now, the difference here with Bitcoin, Crypto and (most) markets is, they do NOT function like this .. AT ALL. One does NOT need fresh fuel over and over again, one simply recycles the old fuel. (hands of that keyboard .. keep reading first) Let's, again, oversimplify this: JimBo paints a limited amount of (20) paintings on small pieces of paper/cloth that represent some value, because they're so unique, nobody can replicate them. Trader-A , let's call him Aron, starts with 10$. Aron buys 10 masterpieces from JimBo for 1$ each. JimBo is thinking "if Aron just bought for 1$ .. maybe I can sell them for 2$ too ?". So he does just that and Trader-B (Buffalo-Bill, who also started with 10$) is now the happy owner of a stack of 5 crispy-fresh 2$ paintings. (JimBo is now the proud owner of (10x1$)10$+(5x2$)10$=20$ but lost 10+5=15 of his precious paintings, the average value of one painting now represents 20$ / 15paintings = 1.33$ (or 1$ = 0.75painting). So his theoretical total worth (all assets combined) is his 20$ plus a theoretical 3.75 for the reaming 5 paintings. Aron and Buffalo-Bill are unaware of JimBo's valuation. Aron takes note of Buffalo-Bill paying more for the paintings and starts bragging that he payed LESS for them. Someone else hears this .. let's call her Trader-C or Cicciolina. .. here comes what all trading boils down to, sentiment/psychology, how you are looking at the valuation of an asset, are you looking at it positively (Bullish) or negatively (Bearish)? The way you look at it influences your decisions. The equilibrium between sentiments at large, effects the market as a whole Cicciolina thinking: Buffalo-Bill asks for more than the initial 2$: "Would you buy this ? I would buy this, I would buy this so hard" and "why should I pay 2$ or more when Aron got it cheaper ?" will buy 5 pieces from Aron for the price of 1.5$ each (Aron wanted to make money on them but it was still cheaper than Buffalo-Bill) , totaling 7.5$. Aron made theoretical profit on half of his initial stack and thereby lowering the cost of his remaining stack, he now has 5 paintings and 7.5$, if he can get 2.5$ for the remaining 5 paintings (0.5$ per painting, less then JimBo got for them), he breaks-even. Aron is content for now. Buffalo-Bill bought for 2$, happy and "confident" it will go higher, making money in the longer-term because of "the past" showing prices can and will go up.. ALWAYS .. SCIENTIFIC FACT .. MATHEMATICAL FACT EVEN . Time passes and Cicciolina is starting to develop doubts about her deal. She is always so impulsive .. did she make a mistake ? She asks Aron and Buffalo-Bill if they want to buy some of hers for more or at least 1.5$ ..which they decline .. they are "good". Cicciolina is getting really nervous and keeps nagging about price until Aron agrees to buy 2-paintings off of her for 1.25$. Cicciolina now lost 0.5$ on 2 of her 5 paintings while Aron now owns 7 paintings and 5$. Cicciolina will now need a total of 5$ (1.666.. $ per painting) to break even. JimBo aware of what is going on with his paintings is not amused and pulls some strings (there always is the possibility of manipulation) .. he tells his neighbor, who works for the phone-company and is a trader in his spare time, Dillon Doe (he wants to remain anonymous .. yes .. the brother of John Doe) to cut some phone lines in order for the others to no longer talk to each other. Meanwhile Dillon Doe is cutting up one of JimBo's paintings (he got it for his birthday). He now puts up a sell order for 1$. Cicciolina sees 1$ and JUMPS right on it .. YESSS .. but .. wait .. what's this ? The trading-chart they've all looked at all this time now shows a huge green Dil ..eh..candle .. going straight for 1000$. "How could this be?" Cicciolina thinks, "I only paid 1$ ... oh crap .. I .. bought .. 0.001 part of a painting ?" . JimBo now all of the sudden is worth 20$ + 4 paintings (he gave one to Dillon Doe remember?) for a total of 4020$ .. where did that 4000$ come from ? did JimBo steal it from someone ? Did someone just lose 4000$ ? Aron and Buffalo-Bill also seemed to have 'gained' money out of nothing. ^^^ this is essentially Market-Cap .. so you see .. it's an absolutely irrelevant metric, since the cap does NOT mean that amount of money really exchanged hands, not every painting was bought/sold for that price and/or at the same time. So, YES BTC could go to 10 million $ and have a market-cap higher than all the money in the world. Aron, Buffalo-Bill and Cicciolina now cut off from knowing each others reason, unknown to them if others are joining their trades, will have to rely solely on their charts. Trying to "predict" price, trying to find patterns, trying to use their guts, trying to throw dice or only trade on Mondays (see one of my related Ideas "How-to-create-a-Strategy-and-make-it-profitable"). Maybe they'll start groups where they discuss all of their gathered knowledge, 'coercing' each other into trades they otherwise wouldn't take "He said it would go up?!" Simply put: 3 or 4 people can be enough to drive price in every direction indefinitely. It is not needed to get "fresh money", "new blood" or "greater fools" in. Not quite how a Ponzi works now is it? Practically there always will be fresh money in of course, old Traders die or quit, youngsters pick up the trade (pun intended), derivatives of the paintings, futures on the paintings, merchandise with the paintings on them .. you name it. Yet that is still irrelevant. The reason why this can continue for quite a while (how long is Gold being traded by now ..) is the difference in mentality and knowledge of traders. Look at Cicciolina for example, she is impulsive (but has a good paying job making movies), she don't mind losing some money .. she "will win BIG some day" . Aron on the other hand is extremely patient, taking some of Cicciolina's money once in a while, while watching her movies. They will keep doing their trades, wining some, losing some. And Buffalo-Bill ? Who knows. This is of course ridiculously oversimplified and does not work in the real world. The real world is more cunning, it clouds our minds with fairy tales, make-believe, hope, fear, scarcity and inflation (one asset gains while the other loses and vice versa). Trading is distribution of wealth. Even if you have extended knowledge about markets/trading and are master of your emotions. You will let go of money or asset once in a while. Be it purposely (cutting losses, see my other Related Idea: "Letting go of Losers") or by mistake, that money will make someone else's day, getting them hooked on this addiction called "Trading".
BITSTAMP:BTCUSD
by Je_Buurman