I think I understand the stupidity.
I put 30 bucks in escrow. He gives me 30 coins. For me to get the escrow back, I need to give back the 30 coins plus any stake they have generated.
Why anyone would actually do this is another question, because that makes no fucking sense to me.
As to how they can stop me from just dumping my 30 coins and the staked coins, I'm guessing since it's a piece of shit coin the only way to actually transfer/move the coin will be through him, so I can't sell unless he lets me.
Why anyone on earth would get involved in this is another question completely. I asked a few times why anyone would purchase coins and stake them if they can't sell the stake but haven't found an answer yet (to be fair, this shitshow is on like 89 different threads so I may just be looking in the wrong spot).
Push the logic a bit further, let's say you can actually buy something with it, after the transaction the seller wants to convert to fiat since he has to buy whatever products he is selling with fiat... Is he going to have to account for the stake on the money he accepted? If the answer to this is no then someone only has to transfer money to a different address and cash it out for money pretending to be a third party (It will look identical on the blockchain for a standard purchase).
I tried real hard to make sense of it but no scenario I come up with make sense.
You have to remember that these schemes are concocted by people that fell for the GAW scam. It's hard to tell if they think these are legit plans that will work or if they are trying to scam others to make up their loss. This unusable coin /escrow system may make sense to people that thought the "investors gave us $4 a coin so we can give you $20 per coin" was a legitimate business plan, or it may just be someone hoping that the people who believe that will believe that their nonsense makes sense to make a quick buck.
Either way, people that give this a second of thought will realize that it doesn't make sense and stay away. Hopefully we can ask enough questions and get enough bad/ignored answers to give a clue to people who may not be informed or who may not be thinking it all the way through.
based on people's trust in you.
