GAW was an obvious scam in its cloud mining days. Thats already collapsed but they still limp on with their scam coin. Thats just about finished too.
I completely disagree about it being obvious back then. In fact, I'm still not sure the cloud mining was a scam. He misrepresented what they were, at least in the case of Zen and Prime, but there's no evidence he was trying to cost his customers money. I don't think any fraud entered into it until he started making promises he had no intention of filling and lying about deals and resourses in place regarding his altcoin in an attempt to boost its value. That's when the scam started.
This was an obvious scam since day 1 to anyone with experience in the cloudmining scam ecosystem.
He promised things he had no intentions of delivering on day 1, for example: "always profitable, never obsolete, takes advantage of economies of scale"
He still has yet to prove any scrypt hardware existed. (he did buy 5 PH/s from bitmain WAY after the ponzi accusations began flooding in)
He still has yet to prove there was ever any real attempt at making Vaultbreakers.
He still has yet to substantiate any of the ridiculous/unbelievable claims made early on.
Remember, his whole idea from day one was to hook them in with cloud mining, take the loss over doing the mining himself so he would have a customer base for his new product. It totally worked, but the cloud mining was always supposed to make people money.
What you've described (again) is a textbook ponzi scheme. Get people hooked on the high returns, and hope to god that money in > money out.
Looking at paycoin, it's pretty clear the whole thing was thrown together in a haste, not planned out over months like you were led to believe. What likely happened is that Josh wasn't as good of a con artist as he thought and money in became less than money out, so he had to create a new scheme which is how he came up with hashpoints/paycoin.
Switching from a Ponzi scheme to a Garza scheme allows him to give complete shit returns, yet still make money by dumping thousands of his useless coin on the market thanks to the very few
faithful beliebers wise/informed investors left.
everything makes way more sense now
