Comment by pfannkuchen
4 months ago
Yeah on memecoins isn’t that just a loophole for running naked pyramid schemes? I.e. a pyramid where everyone knows it’s a pyramid.
Like the weird part about a pyramid is that depending on your risk tolerance it may actually make sense to participate in a pyramid even if everyone involved knows it’s a pyramid. So are that many people being scammed as in tricked (seems hard to believe), or is it just a risky form of gambling that is outlawed in legacy formats.
EDIT: Ponzi -> Pyramid
I've never purchased crypto or had any involvement but acquaintances I know have used that exact argument. They know it's a pyramid but believe they can get ahead because they were in early enough.
They are usually a lot more vague when I ask about their realized gains.
I have many friends who started from really humble beginnings ~5 years ago (or instance, a typical small business like "an e-shop selling bullshit Chinese gizmos online making 20k per month"), and are now uber rich in crypto. Like, hundreds of millions in net worth and spending 200-400k per month. And yes, they don't invest their money anywhere except new and new crypto projects themselves, just because they don't know anything that gives near similar returns. Not one-off success, but 5-10 or more different avenues of making money there (but certainly none of them was about "trading coins" or passively investing in them).
Just to be clear I'm not saying that my aquaintences didn't make money. Just that they are vague.
But ultimately if you have friends making hundreds of millions of dollars and there is enough of them then that essentially proves there will be many more losers than winners.
I personally don't partake for the same reason I didn't partake in Amway in college. It's functionally a pyramid scam and on a personal level a boring way to make a living.
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